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Job creation outpaces layoffs in manufacturing sector, minister says
Industry Ministry data show the total manufacturing workforce expanded from 17.43 million in 2020 to 19.96 million by the end of last year.
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Workers wave to the camera as they leave a factory of textile giant PT Sri Rejeki Isman (Sritex) in Sukoharjo, Central Java, on Feb. 28, 2025. Sritex ceased operations on March 1 after being declared bankrupt by the Semarang Commercial Court late last year. (Antara/Mohammad Ayudha)
D
espite tens of thousands of layoffs in labor-intensive business fields like textiles and footwear, Industry Minister Agus Gumiwang Kartasasmita says overall employment in manufacturing continues to rise.
Citing data from the Manpower Ministry and the Workers Social Security Agency (BPJS Ketenagakerjaan), Agus noted that 48,345 people lost their jobs across various sectors last year.
However, Industry Ministry figures show that 14,847 new companies began operations in the same period, collectively hiring 1.08 million workers, just in the manufacturing sector alone.
The minister also highlighted a growing gap between layoffs and job creation.
In 2022, the ratio stood at 1:5, meaning for every worker laid off, five new jobs were created in manufacturing. This increased to 1:7 in 2023 and surged to 1:20 in 2024, he added.
By the end of last year, the total manufacturing workforce had expanded from 17.43 million in 2020 to 19.96 million.
The last couple of years were marked by the economic recovery from the coronavirus pandemic.
