Inp.polri.go.id - Jakarta. The World Bank has urged Indonesia to improve the quality of its jobs, warning that economic growth will not fully translate into household welfare without better-paying and more secure employment. 

“Despite stable macroeconomic conditions, labor market challenges continue to affect household well-being,” said World Bank Director for Indonesia and Timor-Leste Carolyn Turk at the launch of the Indonesia Economic Prospects report on Tuesday (16/12/2025), as cited by antaranews.com.

The World Bank noted that employment grew by 1.3 percent between August 2024 and August 2025, but most new jobs were created in low-wage sectors. It also highlighted that real wages have declined since 2018, particularly affecting young and mid-skilled workers.

Lead Economist David Knight added that while job creation appears positive, falling wages limit its impact on welfare and overall economic resilience. The institution stressed that improving job quality is essential for inclusive and sustainable growth.

(mg/inp/pr/rs)