Comparison between labour force of india and indonesia

By: Amey Joshi (h12065) Mandar pawde (h12085) Mridul kakar (h12088) Nikhil Abhishek (h12091)

2 billion and Indonesia’s at 240 million. a smaller Asian country Indonesia.5/38.by occupation: Agriculture: 38. finds itself in a position to lure investors away from the third largest economy in the region with higher stock market returns.8% Indonesia Labor force: 116.63 It can be seen from the above data that the Indian labor force has far higher productivity in the services sector while the Indonesian labor force outsmarts India in the industrial sector.4% Labor Productivity India Agriculture – 18. The boom in the mining sector of Indonesia which employs close to 30% of the total labor force in industry is the primary reason behind Indonesia’s high labor productivity. Both the countries enjoy the benefits of demographic dividend. Both have a burgeoning consumer base and are democracies with an investment grade rating. and therefore: This paper makes an attempt to compare the labor force between the two countries so as to make ourselves a bit aware of our competitor.76 Industry46. We start by comparing the labor productivity of the two countries 2 Labor force by Occupation in 2010 India Labor force: 478.35 Services – 55.1% GDP Contribution by Labor Force in 2010 India Indonesia Agriculture – 18.63 Industry – 26.6/34 = 1. leading to comparisons.3/14 = 1. 1 http://www.3% Services: 48.9% Industry: 12. 1.5 million Labor force .by occupation: Agriculture: 52% Services: 34% Industry: 14% Unemployment rate: 10.3 = 0.com/id/47423993/Will_Indonesia_Replace_India_in_the_BRICs .43 Services – 37.9 = 0.5% Services – 37.8 = 3. the countries share many similarities.1% Services – 55.3% Agriculture – 16. As per the report of Goldman Sachs.1/48.4/12.8% Unemployment rate: 7. 1 While the two economies aren’t similar in terms of size.3 million Labor force . India might be at risk of losing its position ‘I” to Indonesia in BRICS. with India’s population of 1.88 Indonesia Agriculture – 16.1% Industry46.1/52 = 0.Comparison between Labor force of India and Indonesia As India fails to deliver on its promise of growth. better fiscal management and lower inflation.6% Industry – 26.cnbc.

Therefore both of these countries have mechanisms that make it impossible to undertake dismissals easily.com 2. (Source: World Bank Report 2010) 100 50 0 Male Female India Indonesia Higher proportion among females ensures work diversity which again gives Indonesia a competitive advantage Conclusion: India and Indonesia enjoy certain similarities in terms of high pool of talented workforce and a progressive democratic government which makes both of them lucrative destinations for foreign investment. % of high school and university graduates in labor force3 30 25 20 15 10 5 0 India Indonesia High school graduate or higher University graduate or higher Better quality of manpower available to Indonesia and therefore a probable lucrative investment destination 4.2 Economywatch. permission of government is required when dismissing a worker. 3.Changes in minimum wages (monthly basis) US$ 100 80 60 40 20 0 India Indonesia 2009 2010 Higher wages are being paid to labor in Indonesia leading to better position of Indonesia in Happiness Index (14) as compared to India (32) (Source :Wikipedia) 5. Indonesia seems to have an advantage in terms of work-force diversity and quality of manpower. .Both economies have large domestic markets that helped shield them from global economic slowdown and global trade contractWhile India surpasses Indonesia in terms of cost. Labor participation Rate: Labor force participation rate is the proportion of population ages 15 and older that is economically active: all people who supply labor for production of goods and services during a specific period. Worker Protection: In Indonesia and India.

as Indian investors are used to challenges in a young democracy. 3 Labor Survey Report by JETRO (Japan External Trade Organization) Overseas Research Department .Political-economic similarities between India and Indonesia would foster Indian FDI into Indonesia.

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