After a Dip, Labor Force Utilization Rebounds in Q2 2022

Employment

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Vika Azkiya Dihni 20/07/2022 14:10 WIB

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BI projects that Indonesia's labor force utilization is recovering, and has even exited the contraction phase that began at the start of the pandemic.

Weighted Net Balance (WNB) of Indonesian Workforce Utilization (June 2019-June 2022)

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Weighted Net Balance (WNB) of Indonesian Workforce Utilization (June 2019-June 2022)

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Indonesia's labor force utilization shows signs of recovery from the impact of the Covid-19 pandemic.

According to a Bank Indonesia (BI) report, at the end of the second quarter of 2022, the weighted net balance (WNB) of the labor force successfully returned to the positive zone, after being in the negative zone for several previous quarters due to the pandemic.

"In the second quarter of 2022, the labor force WNB was recorded at 1.69% and exited the contraction phase since the beginning of Covid-19," BI wrote in its report released on Thursday (14/7/2022).

According to BI, the increase in labor force utilization in the second quarter of 2022 occurred in the majority of sectors, such as mining and quarrying, construction, trade, hotels and restaurants, transportation and communication, finance, real estate, and corporate services.

Meanwhile, sectors recorded as experiencing a decrease in labor force utilization were agriculture, plantations, livestock, forestry and fisheries, manufacturing, and the electricity, gas and clean water sectors.

However, the labor force WNB in the second quarter of 2022 was still lower than before the pandemic. In the second quarter of 2019, this labor force WNB reached 2.47%.

Labor force utilization in the third quarter of 2022 is projected to remain in the expansion phase, although it will slow slightly.

Several sectors projected to increase labor force utilization in the third quarter of 2022 include the manufacturing, finance, real estate, corporate services, and other services sectors.

(Also Read: Formal Business Owners with Junior High School Education and Above Decreased at the Beginning of 2022)

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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After a Dip, Labor Force Utilization Rebounds in Q2 2022

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