Keeping a Close Eye on Unemployment
The Covid-19 epidemic has affected all aspects of economic development, including the labor market.
The Covid-19 epidemic has affected all aspects of economic development, including the labor market. Because the demand for labor is a "derivative" of demand for output, demand for labor is directly affected when production is disrupted.
The decline in the labor demand has been marked by layoffs (whether the workers are still paid or not) or a switch to working on rotation, and not a few workers have been affected by job termination. The Manpower Ministry recorded at least 1.7 million workers had lost their jobs as of May 2020. Meanwhile, the International Labour Organization has projected that the Covid-19 health crisis will affect 25 million workers in Indonesia, while 2.8 million workers will face job termination or layoffs.