The Dynamics of Labor Absorption during the COVID-19 Pandemic

Muhammad Adi Rahman, Akhmad Ramadhan Fatah
Labor & Migration
Indonesia
Other Publications, June, 2021, Final

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Available in Indonesian only

ABSTRACT

The COVID-19 pandemic triggers the Indonesian economic contraction. This affects the domestic labor situation. This infographic shows data related to the sectoral labor dynamics during the COVID-19 pandemic throughout 2020 and the characteristics of workers in the real estate sector, as well as the vulnerability factor faced by the workers in this sector. Generally, we used two methods to analyze the dynamics of labor absorption: labor elasticity and descriptive statistics. Our analysis results show that unemployment rates increased in the beginning period of the COVID-19 pandemic in Indonesia until the second quarter of 2020 and became better in the next quarters as the nation’s economic condition improved. However, the recovery of the labor situation varies across economic sectors. While various sectors have begun to bounce back and employ more people, the real estate sector is consistently experiencing a decrease in the number of workers. The workers in the real estate sector, which is dominated by people who are over the age of 40, male, and high school graduates, are also considered vulnerable. The vulnerability arises because although they are classified as formal workers, they are nonpermanent workers with a lack of participation in the labor social security program. 


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