Layoffs Still Loom over the Labor-Intensive Sector

The shoe industry, as well as textiles and textile products, are still relied upon for job creation. In the past two years, layoffs have continued to negatively impact the performance of this labor-intensive sector.

KOMPAS/WAWAN H PRABOWO

Activities of workers in the shoe manufacturing industry in Cikupa, Tangerang, Banten, Tuesday (30/4/2019). The factory employs as many as 15,000 people.

JAKARTA, KOMPAS — Amid the national economic recovery, the footwear industry and TPT products have not fully recovered from the effects of the Covid-19 pandemic and the global economic slowdown. This is evident in the ongoing wave of layoffs in this labor-intensive manufacturing sector.

The demand for export markets in both sectors has weakened due to global economic pressures. This situation is further compounded by difficulties in boosting domestic sales as a result of the influx of imported goods. Consequently, a decline in production leading to job cuts has become inevitable.