Unemployment in Indonesia
Unemployment is a key economic indicator that reflects the health of a country’s labor market. In Indonesia, the unemployment rate has fluctuated over the years due to various factors, including economic growth, global market conditions, technological advancements, and government policies. As Southeast Asia’s largest economy, Indonesia faces challenges in providing stable employment opportunities for its growing workforce, particularly among young job seekers and informal sector workers. While recent trends show a declining unemployment rate, structural and cyclical factors continue to impact job availability across different industries.
The Indonesian government has implemented various initiatives to address unemployment, such as vocational training programs, investment in infrastructure, and policies to support small and medium enterprises (SMEs). The rise of the digital economy and industrial transformation also presents new opportunities and challenges for the workforce.
Unemployment Rate in Indonesia 2025
According to the International Monetary Fund’s (IMF) World Economic Outlook, Indonesia’s unemployment rate in 2025 is reported at 5.1%.
This means that approximately 14.36 million people in Indonesia are projected to be unemployed in 2025.
| Year | Total Population of Indonesia | Unemployment Rate (%) in Indonesia | Estimated Unemployed Population |
|---|---|---|---|
| 2025 | 281,562,465 | 5.1% | 14,359,686 |
According to Statistics Indonesia (BPS), the country’s official statistics agency, the unemployment rate has shown a declining trend in recent years. The latest data from Statistics Indonesia (BPS) reports the unemployment rate in February 2024 was 4.91%,
| Period | Unemployment Rate (%) |
|---|---|
| August 2022 | 5.86% |
| February 2023 | 5.45% |
| August 2023 | 4.82% |
| February 2024 | 4.91% |
The unemployment rate in Indonesia has shown a steady decline from August 2022 to August 2023, reflecting improvements in the labor market. In August 2022, the unemployment rate stood at 5.86%, which dropped to 5.45% by February 2023. This downward trend continued, reaching its lowest point at 4.82% in August 2023, indicating strong post-pandemic recovery, economic expansion, and increased job opportunities.
However, in February 2024, the unemployment rate slightly increased to 4.91%, hinting at seasonal employment shifts or economic adjustments. This could be attributed to temporary job losses in certain industries, changing labor market demands, or macroeconomic factors.
History of Unemployment Rate in Indonesia (1980-2025)
| Year | Unemployment Rate (%) |
|---|---|
| 1980 | No Data |
| 1981 | No Data |
| 1982 | No Data |
| 1983 | No Data |
| 1984 | 1.6 |
| 1985 | 2.2 |
| 1986 | 2.8 |
| 1987 | 2.6 |
| 1988 | 2.9 |
| 1989 | 2.9 |
| 1990 | 2.6 |
| 1991 | 2.7 |
| 1992 | 2.8 |
| 1993 | 2.8 |
| 1994 | 4.5 |
| 1995 | 7.4 |
| 1996 | 5.0 |
| 1997 | 4.8 |
| 1998 | 5.5 |
| 1999 | 6.4 |
| 2000 | 6.1 |
| 2001 | 8.1 |
| 2002 | 9.1 |
| 2003 | 9.7 |
| 2004 | 9.9 |
| 2005 | 11.2 |
| 2006 | 10.3 |
| 2007 | 9.1 |
| 2008 | 8.4 |
| 2009 | 7.9 |
| 2010 | 7.1 |
| 2011 | 6.6 |
| 2012 | 6.1 |
| 2013 | 6.3 |
| 2014 | 5.9 |
| 2015 | 6.2 |
| 2016 | 5.6 |
| 2017 | 5.5 |
| 2018 | 5.2 |
| 2019 | 5.2 |
| 2020 | 7.1 |
| 2021 | 6.5 |
| 2022 | 5.9 |
| 2023 | 5.3 |
| 2024 | 5.2 |
| 2025 | 5.1 |
According to the International Monetary Fund (IMF), the unemployment rate is projected to be 5.1% of Indonesia’s population in 2025, indicating a stabilization of the labor market after years of fluctuations. The table illustrates Indonesia’s unemployment trends from 1980 to 2025, highlighting periods of economic growth and downturns.
In the early years, data was unavailable until 1984, when the country recorded a low unemployment rate of 1.6%. However, the following years saw a gradual increase, with unemployment peaking at 7.4% in 1995 due to various economic factors, including structural changes in the labor market and external financial pressures. The Asian Financial Crisis of the late 1990s further impacted employment, pushing the unemployment rate to 6.4% in 1999.
During the early 2000s, unemployment remained high, reaching its peak at 11.2% in 2005. This period was marked by economic downturns, shifts in industry demands, and challenges in job creation. However, from 2006 onward, the country saw a steady decline in unemployment, reflecting economic recovery, industrial growth, and government initiatives aimed at workforce development.
By 2019, the unemployment rate had dropped to 5.2%, showcasing Indonesia’s improving job market. Unfortunately, the COVID-19 pandemic in 2020 caused a sudden spike in unemployment, rising to 7.1%, as businesses shut down and economic activities slowed. The subsequent years showed a gradual recovery, with unemployment declining as the economy adjusted to post-pandemic challenges.
As of 2024 and 2025, the IMF projects Indonesia’s unemployment rate to remain at 5.1%, signaling a return to pre-pandemic levels. This stability suggests that government policies, economic growth, and labor market reforms have helped restore employment opportunities.
Unemployment Rate of Indonesia by Gender 2025
| Year | Gender | Unemployment Rate (%) |
|---|---|---|
| 2024 | Men | 4.90% |
| 2024 | Women | 4.92% |
According to BPS-Statistics Indonesia, the unemployment rate for men in 2024 stands at 4.90%, while for women, it is slightly higher at 4.92%. Based on Indonesia’s total population of 281,562,465, this means approximately 13,801,561 men and 13,846,898 women are unemployed. While men generally have higher labor force participation, unemployment among them can be influenced by economic shifts, automation, and industry-specific changes. On the other hand, women often face additional challenges such as limited access to formal employment, wage gaps, and societal expectations regarding household responsibilities.
Unemployment Rate of Indonesia by Age Group 2025
The unemployment rate across different age groups in Indonesia for 2024, based on data from the National Labor Force Survey (Sakernas).
| Age Group | Unemployment Rate (%) |
|---|---|
| 15-19 | 22.34 |
| 20-24 | 15.34 |
| 25-29 | 7.14 |
| 30-34 | 3.37 |
| 35-39 | 2.25 |
| 40-44 | 1.90 |
| 45-49 | 1.71 |
| 50-54 | 1.75 |
| 55-59 | 1.59 |
| 60+ | 1.49 |
| Mean | 4.91 |
Unemployment in Indonesia varies significantly by age group, with the highest rates seen among youth aged 15-24. The 15-19 age group has the highest unemployment rate at 22.34%, reflecting challenges such as lack of experience, skill mismatches, and limited job opportunities for fresh graduates. Similarly, the 20-24 age group has an unemployment rate of 15.34%, indicating a difficult transition from education to the workforce. In contrast, unemployment rates steadily decrease with age, as individuals gain work experience and job stability.
For those aged 30 and above, unemployment rates drop below 3.5%, reaching as low as 1.49% for those aged 60 and above. This suggests that older individuals who remain in the workforce generally hold stable jobs or have secured long-term employment.
Disclaimer: The data research report we present here is based on information found from various sources. We are not liable for any financial loss, errors, or damages of any kind that may result from the use of the information herein. We acknowledge that though we try to report accurately, we cannot verify the absolute facts of everything that has been represented.
