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View all search resultsFinding the best recruitment strategies to attract the top talent
The Indonesian labor market is characterized by the job hugging phenomenon, in which employees stay in their current positions for career stability, or job security, even if they may not be satisfied.
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Jobseekers register themselves at a job fair on May 22, 2025 attended by over a hundred recruiting companies and thousands of jobseekers in Jakarta. (AFP/Bay Ismoyo)
W
ith the start of 2026, the Indonesian labor market is entering a new phase. While global economic uncertainty looms, the national job market is projected to remain solid.
This opportunity does not stem solely from organic domestic growth. Global trade dynamics can drive the relocation of certain manufacturing industries to Southeast Asia. This presents a crucial moment for Indonesia to compete in terms of infrastructure, ease of doing business and, most importantly, talent readiness.
2023 to 2025 marked the introduction phase. In 2026, the optimization phase has begun. Artificial intelligence is no longer merely a recruitment tool, it has changed the very definition of competence
Data from the exclusive Hiring, Compensation, and Benefits 2025 report by Jobstreet by SEEK found that with the increased use of AI in recent years, 71 percent of companies in Indonesia are now also considering a candidate's AI knowledge during recruitment.
As a result of this development, AI-related skills will increasingly be needed across all functions. AI is no longer exclusive to engineers; it is becoming a necessity for various divisions, including marketing, operations and finance. The key lies in AI literacy, data literacy and the ability to integrate AI into workflows to boost productivity.
Consequently, we will see a shift in skill relevance. Repetitive and clerical, like routine administrative, jobs will be increasingly eroded by automation. On the other hand, human added value will shift toward analytical capabilities, complex problem-solving, creativity and data-driven decision-making. For workers, this is the time to evaluate whether their daily work is dominated by routine tasks that are easily automated; if so, it is a signal to start investing in new skills.
A major question that frequently arises at the start of the year is: will 2026 be marked by a massive wave of layoffs?
