Informal Sector Workers: Economic Activities and Survival Strategies during the COVID-19 Pandemic

Abstract

The aim of this research is to determine the economic activities of informal sector workers before and during the COVID-19 pandemic, the survival strategies of informal sector workers during the pandemic, a comparison of the welfare of informal sector workers before and during the pandemic, and the association of survival strategies with economic activity. It is hoped that the research findings can provide recommendations for stakeholders for evaluating policies regarding improving the welfare of informal sector workers in the future. The research was conducted in four sub-districts in Denpasar City, Bali, Indonesia. Data collection in the field was carried out using survey methods. The variables used include Socio-economic characteristics of informal sector workers, economic activity before and during the COVID-19 pandemic, survival strategies during the COVID-19 pandemic, and welfare. The data analysis method uses descriptive analysis and association analysis uses chi square analysis. The survival strategy of informal sector workers in this study was dominated by respondents' answers with the strategy of taking loans from informal lenders (30.7%). The strategy of relying on/applying for government social assistance programs (direct cash assistance, necessities, and other assistance programs) was answered by 14.7% of respondents. There were no respondents who implemented a survival strategy by switching to other types of work in the informal sector. The change in respondents' income during the COVID-19 pandemic compared to before the pandemic was obtained by the majority (90.0%) stating that income from working in the informal sector had decreased compared to before the pandemic. The results of the association test show that there is a significant association between survival strategies and employment status, presence/absence of labor assistance, and physical facilities.