Indonesia's Labor Market Update: August 2025

Mixed Signals in Employment Data

Indonesia's labor market presented a mixed picture in August 2025, with the workforce reaching 146.54 million people, representing a significant increase of 1.90 million jobs compared to the previous year ¹

. However, the data also revealed concerning trends in sectoral layoffs.

Sectoral Layoffs: Manufacturing, Mining, and Trade Hit Hard

The Badan Pusat Statistik (BPS) reported that 58,000 workers were laid off in August 2025, with the majority coming from three key sectors: manufacturing (22,800 workers), trade (9,700 workers), and mining (7,700 workers) ²

. These layoffs accounted for 0.77% of the total unemployed population of 7.46 million.

Unemployment Dynamics: Long-term Trends

The data also highlighted various categories contributing to unemployment. Notably, 31.08% of the unemployed were classified as long-term unemployed (more than one year), while 14.58% were fresh graduates who had not been absorbed into the job market. Additionally, 9.07% of individuals had been accepted into jobs but had not yet started working.

Analysis and Implications

The mixed employment data suggests that while overall employment numbers are growing, certain sectors are undergoing significant restructuring. The BPS's detailed breakdown provides valuable insights into the challenges facing Indonesia's labor market, particularly in terms of absorbing new entrants and managing sectoral transitions.