The Risk Of Global Recession Will Be Felt By Workers. This Is A Step That Can Be Taken By People With MSMEs

Illustration of economic recession (Unsplash).jpg

YOGYAKARTA Global recession is likely to be felt by all countries, including Indonesia. This will have an impact on many things. Even workers will bear the risk of a global recession which is predicted to occur in 2023.

In simple terms, the global recession is a condition when a country's economy worsens. This situation is characterized by several things, ranging from a decrease in Gross Domestic Product to a negative real economic growth in two consecutive charges.

The current global recession is triggered by many things, ranging from the COVID-19 pandemic which has made the economy sluggish to the war between Russia and Ukraine.

The recession then had an impact on the economies of various countries, including Indonesia. Even Indonesia continues to be overshadowed by a recession in 2023.

The World Bank notes that the trigger for the year's recession is when central banks around the world simultaneously raise interest rates. The policy was taken in response to inflation, which is a condition where prices continue to rise continuously.

This condition will be felt by all levels of society, including workers. Some of the impacts of the economic recession are as follows.

The impact of the recession that will be felt by workers is the potential reduction of employees by the company. This reduction is one of the ways taken by the company to cut production costs high and low people's purchasing power.

Workers will feel the risk of recession, one of which is narrowing the employment opportunities so that the unemployment rate also increases.

The recession also triggered an increase in production materials and had an impact on the increase in the price of basic commodities. This increase will be felt by workers. The increase in prices can occur in food prices, fuel prices, and so on.

Reduction of workers coupled with rising prices of basic necessities triggers an increase in poverty. This effect certainly has an impact on the national world.

The economic resilience of workers during a recession is determined by many things, one of which is the amount of income earned. For young workers who have regional minimum wage (UMR) standard income or below, there are several tips, namely the following.

Emergency funds are funds earmarked for emergencies or unexpected things beyond expectations. Emergency funds will help workers to stay for a while to deal with recession.

Workers are advised to make a priority scale of consumption to save finances. Prioritize the main things to minimize unnecessary expenses such as buying expensive clothes, or expensive foods.

For the time being, avoid debt first, especially consumptive debt. It will worsen financial condition in the future because it is very likely that bank interest rates will continue to rise in the future. You are also advised to immediately pay off debts that have large interest rates.

Side jobs outside of basic work will help increase income so that the economy can be more stable. Side jobs will also help workers when there is a reduction in employees at any time.

Do investment to save funds. A profitable investment will help increase the coffers of money so that economic resilience can be achieved during a recession.

The risk of a global recession can be experienced by anyone, including workers. To monitor the latest news, continue to monitor VOI.ID.