Analysis of the Effect of Poverty and Unemployment on Indonesian People's Welfare during the Covid-19 Pandemic for 2020-2021

Aulia Ilma Rachmah, Dwi Prasetyani, Bhimo Rizky Samudro


Coronavirus disease 2019 or better known as COVID-19 was first detected in December 2019 in China, and the first case was detected outside China on January 13 in Thailand. Often seen from an economic perspective, poverty covers all aspects of social welfare in an area. Poor households often lack food security, and access to basic education, health care, clean water, and energy sources. A supply shock will lead to a demand shock. Calculations of only first-order supply shocks and subsequent demand have predicted a major economic slowdown. The global economic contraction that occurred due to COVID-19 could reach -3% or could be even worse than the 2008-2009 global financial crisis. An economic recession will push millions of people into poverty. A rapid simulation covering 138 developing countries and 26 high-income economic countries found that even in the mildest scenario, COVID-19 could cause an increase in the number of poor people by 85 million people. The research method in this study is a literature study. This literature study is research conducted by examining various literature studies needed in research. The results of this study are that the level of poverty and unemployment has a role in establishing the level of welfare of the Indonesian people during Covid-19 from 2010-2021.


Poverty; Unemployment; Welfare; COVID-19

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