{
    "success": true,
    "data": {
        "id": 1752733,
        "msgid": "core-predicts-increased-risk-of-job-losses-in-q2-2026-amid-global-pressures-1779545576",
        "date": "2026-05-20 18:46:23",
        "title": "CORE Predicts Increased Risk of Job Losses in Q2 2026 Amid Global Pressures",
        "author": "Friska Yolandha",
        "source": "REPUBLIKA",
        "tags": "",
        "topic": "Economy",
        "summary": "CORE warns that the risk of layoffs could rise in Q2 2026 as global pressures begin to affect Indonesia's domestic manufacturing sector. It cites the Iran conflict disrupting Hormuz shipping routes, rising production costs, and a contraction in manufacturing employment, with projected additional layoffs of 15,300 to 20,300 workers concentrated in key industrial hubs.",
        "content": "<p>Jakarta \u2013 The Centre of Reform on Economics (CORE) Indonesia has\nwarned that the risk of layoffs could rise in the second quarter of 2026\ndue to global pressures beginning to affect the domestic manufacturing\nsector. In its latest report, quoted in Jakarta on Wednesday 20 May\n2026, CORE cited the conflict in Iran, which disrupts shipping routes\nthrough the Hormuz Strait, as having disrupted the global supply\nside.<\/p>\n<p>For Indonesia, where the manufacturing industry still relies on\nimported raw materials, the disruption is pushing up production\noperating costs.<\/p>\n<p>\u2018The pressure on the labour market stems from two more structural\nfactors: the pass-through of cost shocks from global conflicts to the\nbusiness world and Indonesia\u2019s industry\u2019s dependence on imported raw\nmaterials,\u2019 CORE wrote in its report.<\/p>\n<p>As costs rise, pressures are being felt by businesses and could weigh\non employment absorption.<\/p>\n<p>Evidence of this is reflected in the S&amp;P Global PMI survey for\nApril 2026, which shows a decline in employment absorption in the\nmanufacturing sector.<\/p>\n<p>The PMI in April 2026 fell to 49.1, entering contraction territory,\nafter previously reaching 53.8 in February 2026.<\/p>\n<p>In this context, CORE estimated that cost pressures could lead to\nincreased layoffs in the near term.<\/p>\n<p>Based on a 2020 input-output table simulated by the Badan Pusat\nStatistik (BPS), the additional layoffs are estimated at between 15,300\nand 20,300 workers.<\/p>\n<p>The layoffs are expected to be concentrated in industrial\nagglomeration areas, such as the electronics sector in Batam, textiles\nand ready-made garments in West Java, chemicals and pharmaceuticals in\nEast Java, and the footwear industry in Banten.<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/core-predicts-increased-risk-of-job-losses-in-q2-2026-amid-global-pressures-1779545576",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}