66% of employers struggle with a talent shortage, report finds

A Randstad Singapore report shows that 66% of employers are worried about a talent shortage in 2025. Competition for skilled workers is increasing, with 38% needing to outbid rivals for talent. Challenges include meeting salary expectations (36%), attracting enough applicants (21%), and lacking internal recruitment capabilities (19%). Additionally, 17% of employers struggle to assess candidates’ soft skills and potential.

In a significant move to safeguard workers’ welfare, the Indonesian Government is launching the Job Loss Insurance (JKP) programme, effective January 1, 2025, to provide crucial support for laid-off employees. The initiative, as announced by Indonesian Manpower Minister Yassierli, is designed to improve the financial impact of job loss amid global economic uncertainty and provide workers with opportunities to upskill.

The JKP programme will offer cash benefits covering 60% of an individual’s wages for up to five months, ensuring workers can maintain purchasing power during their transition. Additionally, the programme includes a training allowance of 2.4 million IDR (approximately 148 USD), and easy access to the Pre-Employment Programme, which aims to enhance workers’ skills and employability. This initiative is expected to benefit approximately 3.76 million workers across 110,000 companies in Indonesia.

To further support businesses, particularly in labour-intensive industries, the government will provide 50% subsidies for workplace accident insurance. This will help ease the financial burden on companies, encouraging them to retain employees even during challenging economic times.

Minister Yassierli also addressed concerns about the recent VAT increase to 12%, assuring the public that the government is committed to balancing fiscal policy with social protection measures. The policy aims to ensure that Indonesia’s workforce remains resilient, with both financial and training resources to secure their future in an evolving job market.

As Indonesia navigates global economic challenges, the JKP programme represents a critical step in enhancing job security, workforce stability, and economic inclusivity.

Source: GWFM Research & Study