The effect of economical phenomenon on informal construction workers earnings within Covid-19 pandemic: A mixed method analysis

Abstract

The informal sector is an alternative to getting a job without special conditions such as education level or job skills. These informal workers are often found in the construction sector. Informal construction workers have no social protection and are economically marginalized, making their economy worse during the Covid-19 pandemic. This study investigates informal construction workers' economic phenomenon, from big cities in Java Island, Indonesia, when facing difficult situations due to the pandemic of Covid-19 with the mixed method. First, the quantitative method gathered the questionnaire from 225 informal workers in the construction sector who experienced a drastic reduction in their regular income, even weekly or monthly. They take advantage of savings and increase debt to cover the reduced income. Then, the qualitative method was conducted to investigate the informal construction worker's economical phenomenon with in-depth interviews with five foremen and five construction field managers. During the pandemic, government programs to provide income support for informal workers have contributed less to informal sector workers. Thus, the results of this research can be used by the government or other parties to help provide better social protection to informal sector workers from a more significant economic recession due to the pandemic.