Employment and Skill Development Initiatives in the Labor Markets: The Cases of Indonesia and Thailand

Abstract

This study delves into the intricate dynamics of labor markets in Indonesia and Thailand, revealing the symbiotic relationship between policy attributes, vocational education, and collaborative governance, all anchored in a robust theoretical framework encompassing policy attributes. The central question driving this research is: How can the government effectively mitigate labor market challenges in Indonesia and Thailand? To answer this question, the study aims to illuminate the interplay of solubility, complexity, scale, divisibility, monetarization, scope, and interdependence attributes within labor market policies. Employing a case study as its primary research strategy, the study analyzes data from diverse sources, including labor force statistics, policy documents, and academic literature. The Indonesian government, driven by the commitment to address the multifaceted challenges of unemployment and skill gaps, has formulated strategic initiatives to increase productivity and competitiveness. Thailand’s School in Factory Programs is an exemplary model, showcasing a comprehensive approach to workforce competence by seamlessly integrating education with industry needs. The analysis extends to the broader context of population policies, drawing valuable lessons from the Republic of South Korea. The success of South Korea’s population policy highlights the relevance of principles such as New Public Management (NPM), New Public Governance (NPG), and New Public Service (NPS). These principles are subsequently intertwined with the Indonesian and Thai cases, providing a comprehensive understanding of governance dynamics within the context of population and employment strategies.