Service sector

COVID-19 attracts more workers to low-paying jobs in the service sector – Economy

Dzulfiqar Fathur Rahman (The Jakarta Post)

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Jakarta ●
Sat 5 March 2022

More Indonesian workers have turned to service sector jobs in recent years as factories have laid off workers amid the pandemic-induced economic downturn.

However, the latest data shows that these workers remain concentrated in traditional sectors with relatively low wages because the country lacks highly skilled human capital, which hampers the benefits of Indonesia’s economic tertiarization, a phenomenon that had stimulated the growth in developed countries.

Traditional sectors, including wholesale and retail trade, accommodation and food service activities, and transportation and storage, employed the majority of Indonesia’s workforce in services in August 2021, according to the latest. data from Statistics Indonesia (BPS).

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