Indonesia’s Jobless Rate Falls to 4.76% in February 2025, Lowest Since 1998

 

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JAKARTA, investortrust.id — Indonesia’s open unemployment rate declined to 4.76% in February 2025, the lowest level recorded since the 1998 financial crisis, according to the national statistics agency.

 

The latest labor force survey from Statistics Indonesia (BPS) showed that 7.28 million Indonesians were unemployed in February out of a total labor force of 153.05 million. At the height of the COVID-19 pandemic in August 2020, the number of unemployed reached 9.77 million.

 

Head of BPS Amalia Adininggar Widyasanti said on Sunday, May 25, that labor absorption surged despite layoffs and an influx of 3.67 million new entrants to the workforce. “Of the new labor force, 3.59 million people found jobs. That’s a 97.7% absorption rate,” she said.

 

Job Growth Across Nearly All Sectors

Employment increased in nearly every sector. The agricultural sector led the way with 890,000 new workers, particularly in palm oil, beverage crops, and rubber plantations.

 

Meanwhile, the trade sector absorbed around 980,000 new workers, driven by demand in small businesses such as food stalls, mobile vendors, and street hawkers.

 

The manufacturing sector also added jobs, especially in footwear, snack products like crackers and chips, and motorcycle parts. The footwear industry recorded the highest employment growth between February 2024 and February 2025.

 

“This is one of the strongest labor market performances in the last five years,” Amalia said.

 

Expanding Workforce

Data published on BPS’s website showed the Indonesian labor force increased by 3.67 million people year-on-year, reaching 153.05 million in February 2025 from 149.38 million in February 2024. The number of people employed rose by 3.59 million over the same period, while unemployment grew marginally by 83,000.

 

These figures suggest that Indonesia’s job market is not only expanding but also absorbing the majority of new labor force entrants—an encouraging sign for policymakers targeting inclusive economic growth.