HomeBusinessIndonesia's Unemployment Rate Drops to 4.75% as 1.44 Million Jobs Added

Indonesia’s Unemployment Rate Drops to 4.75% as 1.44 Million Jobs Added

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Indonesia’s labor market showed signs of robust growth between August 2025 and August 2026, as the country added 1.44 million jobs, according to national employment statistics. This increase brought the total number of employed people to 147.99 million, reflecting a positive trend in employment figures.

During this period, the labor force expanded to 155.37 million, marking an increase of approximately 1.37 million people compared to the previous year. The country’s labor force participation rate stood at 70.33% in August 2026, slightly down from 70.59% a year earlier. A closer look at participation rates revealed a significant gender gap, with male participation at 84.16%, in contrast to 56.37% among women.

Agriculture continued to be the largest employment sector in Indonesia, accounting for 28.20% of the workforce. The wholesale and retail trade sector contributed 17.86% to employment, while manufacturing employed 13.75% of workers, maintaining its role as a key sector in the economy.

In terms of unemployment, the situation improved as the number of unemployed individuals decreased by 77,000, bringing the total down to 7.38 million. Consequently, the national unemployment rate fell to 4.75%, a decrease of 0.09 percentage points compared to August 2025.

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