I. INTRODUCTION
In January, 2005, it was estimated that up to 600,000 people in Indonesia's Nanggroe Aceh Darussalam (NAD) province and the island of Nias lost their primary source of livelihood in the immediate aftermath of the earthquake and tsunami of December 26, 2004.(1) Even before the disaster, NAD&Nias were characterized by high levels of poverty, both amongst those without work and those who were working. Having adequate earnings from work is an extremely important factor in the region -- one that often determines the well-being of workers and their families and the ability of children to attend school. Put simply, the quantity and quality of employment opportunities in these historically poor areas is a major factor determining the overall well-being of a large portion of the region's population. Yet, many individuals in the region, particularly young people and women, have historically found it difficult to find decent employment opportunities and to secure a life outside poverty.
The challenge of improving the livelihoods of those in the area is more important now than ever before, and the opportunity for doing so has probably never been as great. Billions of dollars are being invested in the region with the hopes of "rebuilding better".(2) With this influx of support, resources and the keen attention being paid to improving physical infrastructure, there is also an important opportunity to improve the livelihoods of the individuals in the region and to rebuild a better labour market than that which existed prior to the tsunami. If investments are made to improve workers' education and skills and to foster growth in employment opportunities that will provide workers with a decent income, social protection, rights at work, and if underrepresented groups gain greater access to decent jobs, the NAD&Nias labour market would indeed be built back better.
The remaining sections in this paper examine the issue of livelihoods and labour markets within NAD&Nias in greater detail, with an emphasis on identifying the crucial challenges that remain in improving the current state of affairs. The next section discusses the NAD&Nias labour market, with a particular focus on the impact of the tsunami on workers and their livelihoods, including women and youth. The subsequent section briefly looks into on-going activities and progress to date. Taken together, these sections point out the key areas in local labour markets that deserve heightened attention. The concluding section lists the most significant policy challenges on the road to decent employment.
Footnotes:
(1) ILO Global Employment Trends Brief, February 2005, Geneva ILO http://www.ilo.org/public/english/ employment/strat/download/get05en.pdf
(2) This theme was presented in the 9-month progress report published jointly by the World Bank and Indonesia's BRR, entitled "Rebuilding a Better Aceh and Nias: Stocktaking of the Reconstruction Effort". For more information, see: http:// siteresources.worldbank.org/ INTINDONESIA/Resources/Publication/ 280016-1106130305439/ AcehReport_9mths.pdf
(pdf* format - 126 KB)