Pandemic Anomaly: Job Absorption Faster Than Number Of New Job Seekers, Really?

Illustration (Photo: Doc. Antara)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani said that the unemployment rate in Indonesia was quite reduced during the pandemic.

In his record, the unemployment rate in the August 2020 period had risen to the level of 7.07 percent. However, that figure was later reduced to 6.62 percent in February 2021.

"In that period, the Indonesian economy, despite contracting but in a recovery trend, succeeded in creating 2.61 million new jobs," he said when delivering a speech on the government's response to the views of the DPR RI factions on the 2022 RAPBN at the Senayan Parliament Complex, Jakarta, Monday 31 May.

According to the Minister of Finance, this fact then raises hopes that the wheels of the economy have started to spin fast after the COVID-19 pandemic attack that hit the business sector.

“This job absorption is faster than the addition of the number of new job seekers, which increased by 1.59 million people in the same period. As a result, the unemployment rate has decreased," he said.

In the previous VOI report, the Central Statistics Agency (BPS) stated that there was a fairly large labor absorption in the period August 2020 to February 2021.

The BPS report stated that the unemployment rate as of August 2020 was recorded at 9.77 million people. This number was later reduced to 8.75 million people in February 2021.

"This indicates that around 1.02 million people are no longer unemployed or working," said BPS Head Suhariyanto via video conference, Wednesday, May 5.

Meanwhile, the unemployment rate in February 2020 was stated at 6.93 million people.

“Indeed, it has not fully recovered compared to now. But keep in mind that in February 2020 there has not been a pandemic, while this year it has," he said.

Meanwhile, in terms of wages, there is a recovery trend, although it is not the same as the pre-pandemic period.

In February 2020 the average monthly wage of workers was IDR 2.91 million. This value decreased in August 2020 to IDR 2.76 million, and improved to IDR 2.86 million.

Then from the provincial side, the highest labor wage is in the Riau Islands with Rp. 4.3 million. Followed later, DKI Jakarta amounted to Rp4.12 million.

Then, the lowest wages were occupied by the provinces of West Sulawesi which amounted to Rp. 1.94 million, Central Java and DIY Rp. 2.19 million, and West Nusa Tenggara Rp. 2.21 million.