Indonesian Minister of Manpower: Economic Conditions in the Labor Sector Beginning to Show Signs of Recovery

JAKARTADAILY.ID – Indonesian Minister of Manpower Ida Fauziyah said that economic conditions in the employment sector have shown signs of recovery after about 2 years of facing the COVID-19 pandemic.

She said that economic recovery in the employment sector can be seen in at least in six facets. First, economic growth in the first half of 2022 reached 5.01 percent (y-o-y). The highest source of growth was found in the Industrial sector, which was 1.06 percent.

Second, the Labor Force Participation Rate (TPAK) will increase from 68.08 percent in 2021 to 69.06 percent in 2022.

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"This indicates that the working age population is becoming more active in entering the labor market, as well as a sign that the working age population is starting to show optimism towards improving labor market conditions in the context of economic recovery after the COVID-19 pandemic," said Ida Fauziah on the ministry's website on Tuesday, July 26, 2022.

Ida continues, the third is the decrease of the open unemployment rate, from 6.26 percent in February 2021 to 5.83 percent in February 2022. In this context, the number of unemployed due to Covid-19 decreased from 1.62 million people to 0.96 million people in the same period.

In addition, the number of residents temporarily out of work due to Covid-19 decreased from 1.11 million people in 2021 to 0.58 million people in 2022.

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She further said that the working population who experienced reduced working hours also decreased from 15.72 million people in 2021 to 9.44 million people in 2022.

"Such conditions show that the productive time (working time) of Indonesian workers is getting better," she said.

Fourth, the number working population increased by 4.55 million people in the last year from 131.06 million people in 2021 to 135.61 million people in 2022. Job creation stretches occurred in agriculture, mining and quarrying, industry, electricity, gas and water, construction, transportation, and warehousing, as well as accommodation and food and drink.

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Fifth, the average wage for workers in Indonesia has increased from Rp. 2,860,630, - in 2021 to Rp. 2,892,537,- in 2022. Ida added that although the average wage of workers has not increased significantly, this at least shows an improvement in terms of workers' income.

Sixth, the number of active BPJS Employment participants can continue to increase during the pandemic from 29.98 million people in 2020 to 32.30 million people in May 2022.