Labor, Migration & Informal Sector

Indonesia has one of the largest informal sector economies in the world. As in many other Third World countries, the informal sector in accounts for most of the total employment absorption (Tambunan, 2000). Analyzing labour-market for individuals in migrant households in Indonesia, research shows that long-term migrants (LTMs) tend to gravitate to the small-business sector and to jobs with regular wages, whereas recent and very recent migrants are more likely to work in the informal sector. (Manning 2013).

Presently, SMERU is conducting a study on Return Migration and Reintegration for Low-Skilled Migrant Workers (in collaboration with PIDS). Governments from countries like Indonesia, the Philippines, and Thailand saw the need to have policies related to the reintegration of migrant workers because of the magnitude of its impact in their country’s development. The study is expected to provide recommendations based on known reintegration initiatives and measures to facilitate freer labor movements in SEA and to Japan.