The Impact of the COVID-19 Pandemic on Layoffs, Income and Social Protection of Workers in Indonesia

Abstract

Purpose: This study aims to analyze the effects of the pandemic on worker layoffs and income in Indonesia. Method: An accidental sampling method was employed, using an online survey as the research tool. Results and conclusion: The results revealed that COVID-19 has led to a considerable increase in worker layoffs and a significant decrease in income, particularly during periods of social distancing. The findings indicate that the rate of worker layoffs in Indonesia reached 15.6 percent. Regarding income, approximately 31.0 percent of workers reported a decrease of less than 50 percent, while 8.6 percent experienced a decrease of over 50 percent. Research implications: The implications of this research highlight the importance of strict government supervision over companies in each region. It also emphasizes the need for community involvement to address these challenges by exploring new strategies that incorporate technology and seek alternative job opportunities, while still adhering to health protocols. Originality/value: The findings of the study contribute to the existing body of knowledge by quantifying the extent of worker layoffs and income reduction in Indonesia. This information can be valuable for policymakers, government agencies, and organizations in formulating targeted interventions and policies to mitigate the negative effects of the pandemic on workers' livelihoods.