Business · Economy · 3 hrs ago

Indonesia's Unemployment Rate Fell to 4.75% in August 2026

Indonesia's Unemployment Rate Fell to 4.75% in August 2026

Indonesia's unemployment rate was 4.75% in August 2026, down from 4.85% a year earlier, according to the country's statistics agency, BPS.

The labour force numbered 155.37 million, including 7.38 million people classified as unemployed.

Informal workers made up 57.93% of workers, up from 57.80% a year earlier, while the formal share slipped to 42.07%.

BPS official Edy Mahmud said job losses have pushed some people from formal jobs into informal work, but that does not necessarily make them unemployed.

People who work at least one hour a week count as employed under the international standard cited by BPS, even if they work fewer hours or in informal jobs.

BPS says more formal jobs are needed to improve workers' welfare more evenly.

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Edy MahmudStatistics Indonesia deputy for balance sheets and statistical analysis
A person who works to earn or help earn income for at least one hour in a week is classified as employed.
via Detik
This is a signal that formal-sector employment absorption still needs to increase.
via Detik