The Role of Labor in Development – In managing development, it definitely takes a lot of manpower to be able to build what you want
The role of labor in development has two sides, namely as an object that needs to be built and prospered as well as the subject of development actors themselves. The welfare of the whole community is basically the welfare of workers who are able to meet the needs of themselves and their families. Even the income of a country in the form of tax revenue and non-tax revenue actually comes from the results of workers, both from workers as a production function and workers as a consumption function.
Workers are also one of the determinants of a nation’s competitiveness. This can be seen from the Global Competitiveness Index released in the 2018 World Economic Forum report, Indonesia is ranked 45th out of 140 countries. Of the eleven global competitiveness index variables, there are two variables related to employment, namely the labor market efficiency variable and the competence of the workforce. In this case, in order to increase the competitiveness index of our country, efforts to improve the quality of human resources in the form of improving the intelligence, health, competence and work ethic of the workforce or in other words increasing labor productivity, must be one of the development priorities.
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Labor productivity is one of the company’s measures in achieving its goals. Human resources are the most strategic elements in the organization, must be recognized and accepted by management. Increasing work productivity is only possible by humans (Siagian, 2002, p.2). Therefore, labor is an important factor in measuring productivity. This is caused by two things, among others; first, because of the large costs sacrificed for labor as part of the largest costs for procuring products or services; second, due to input on other factors such as capital (Kussriyanto, 1993, p.1).
Referring to the expert opinion above, labor as a subject as well as an object of development, has a central position in determining the productivity of a nation. Currently, Indonesia is still experiencing serious problems in the field of labor productivity. This was conveyed by the Minister of Development Planning, Head of BAPPENAS.