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View all search resultsOfficial unemployment decline contrasts with rise in layoffs
Continued layoffs and a shift of work to the informal sector raises questions about the quality of jobs being created as official data shows that the unemployment rate edged down in May.
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New workforce: Fresh graduates line up on Oct. 8, 2024 at the Al-Bantani Mosque in Serang, Banten, where a job expo was being held. (Antara/Angga Budhiyanto)
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ontinued layoffs and a shift of work to the informal sector has raised questions about the quality of jobs being created as official data shows that the unemployment rate edged down in May.
Statistics Indonesia (BPS) recorded 7.22 million unemployed people in May 2026, equivalent to an open unemployment rate of 4.65 percent. The rate was slightly lower than the 4.68 percent recorded in February, while the number of unemployed people fell by around 24,000.
The agency also recorded 148.19 million employed people in May, an increase of 522,000 from February, with the total labor force reaching 155.41 million.
However, the headline improvement in employment came as Indonesia continues to grapple with layoffs and a labor market dominated by informal work.
Manpower Ministry data show that 43,805 workers were laid off and registered under the Job Loss Insurance (JKP) program in the first half of the year, with West Java accounting for the largest share, at 20.16 percent of the total.
The Indonesian Employers Association (Apindo), meanwhile, reported that at least 126,000 workers had been laid off during the January-May period.
Most Indonesian workers remain outside the formal economy, where dismissals are usually not recorded in official statistics.
