Sri Mulyani Reveals The Trend Of Layoffs Increasing In Almost All Countries

JAKARTA - The coronavirus pandemic or COVID-19 has spread throughout the country. As a result of the outbreak of this virus, the global economy is under pressure, which has led to an increase in unemployment in almost all countries.

Finance Minister Sri Mulyani said that the COVID-19 pandemic has led to a trend of layoffs (layoffs) because companies are unable to survive. As a result, the number of unemployed has increased.

Sri said the increase in unemployment was due to the decline in manufacturing and service industry activity amid the COVID-19 pandemic. One of the countries that experienced the highest increase in unemployment was the United States.

According to him, last year unemployment in the US was only 3.7 percent, but as a result of the COVID-19 pandemic, it soared to 10.4 percent. Meanwhile, the highest unemployment currently occurs in Italy. In 2019 the number of unemployed in this country is 10 percent, then in 2020 it will increase to 12.7 percent.

"Some even predict that it could reach 15 to 20 percent, this is the largest unemployment rate in world history, comparable to an economic depression," he said, at a press conference for our State Budget, in Jakarta, Friday, April 17.

Sri Mulyani, in her presentation, explained that the country that also experienced an increase in unemployment was Europe from 7.6 percent to 10.4 percent in 2020.

Then, in France in 2019 the unemployment rate in this country was 8.5 percent, but due to the pandemic it increased to 10.4 percent. Furthermore, Kananda from 5.7 percent, soared to 7.5 percent.

Not only that, Australia also experienced an increase in unemployment. In 2019 unemployment in this country was recorded at 5.2 percent. In 2020 unemployment will increase to 7.6 percent.

In Asia, a number of countries did not escape the wave of layoffs. Among them are Japan, from 2.4 percent to 3 percent. Korea from 3.8 percent to 4.5 percent, to Hong Kong from 3 percent to 4.5 percent.

Meanwhile, in Indonesia, Sri Mulyani said there were more than 1.5 million who were laid off or sent home. 90 percent were laid off and 10 percent were laid off. Then, 1.24 million formal sector workers and 265 informal sector workers. However, Sri Mulyani has not yet explained how much the unemployment rate has increased in Indonesia due to the COVID-19 outbreak.

Previously, Sri Mulyani had predicted that there would be 5.2 million new unemployed under a tough scenario. Meanwhile in 2019, BPS recorded that the unemployment rate in Indonesia reached 5.28 percent or as much as 7.05 million.

Tax Revenue Growth

Sri Mulyani said that in the midst of this pandemic, the growth of income tax article 21 was 3.80 percent. Then, he detailed the company's employee income tax article 21 after growing in February by 13.5 percent. Meanwhile, revenue in March fell.

According to him, the decrease in PPh 21 in March was due to the slowdown in installment payments, only growing by 4.11 percent and the payment of PPh Article 21 on old-age security (JHT) and pensions grew by 10.12, the highest in the first quarter.

"This means that there is a decrease in the number of workers. This means that once they layoff they then pay the old age security and pension. Then the PPh article 21 is paid for the payment. This does not mean that growth is good," he explained.

This growth in state tax revenue, said Sri, is not good news. This is because the increase in layoffs has resulted in the company paying severance pay and generating income tax article 21 JHT and pensions.

"The recipient of our taxes, PPh article 21 is very small from 2019 at 14.7 percent. We are aware of the increase in indexing for those who experience layoffs," he said.