Employment Situations of Economic Sectors Impacted by the COVID-19 Pandemic

Muhammad Adi Rahman, Ahmad Zuhdi Dwi Kusuma, Hafiz Arfyanto
Economic Policy, Labor, Migration & Informal Sector
Indonesia
Briefs, June, 2020, Final

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Executive Summary

The COVID-19 pandemic-induced economic crisis has affected the labor force in Indonesia. A number of workers have been furloughed and even laid off, as the crisis has caused disruption to companies’ operations. There are six economic sectors with the potential to be heavily impacted by the pandemic, namely accommodation and food service activities, trade, transportation and storage, construction, manufacturing, and other services activities. Based on the 2019 National Labor Force Survey (Sakernas) and National Socioeconomic Survey (Susenas) data, the six sectors are dominated by workers from the middle class who are mostly high-school graduates. Looking at the formal/informal sector of employment, accommodation and food service activities, trade, and transportation and storage are dominated by informal workers. In addition, this crisis has a potential to reduce women’s labor participation rate, especially in other services, and accommodation and food service activities. The labor situations of the six sectors as presented in this issue brief can serve as basic information for policymakers in formulating effective strategies to overcome the impact of COVID-19 pandemic on Indonesia’s labor force.


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