Indonesia Worker Layoffs Decline 4.1% in January–August 2025
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JAKARTA, Investortrust.id — The Ministry of Manpower reports that 830 workers have been laid off nationwide in August 2025, bringing the total number of layoffs from January to August to 44,333. The figure represents a 4.1 percent decline from 46,240 layoffs in the same period last year.
The monthly trend also points to easing pressures. Layoffs in August were lower than the 1,118 workers recorded in July, 1,609 in June, and 4,702 in May.
According to the Satu Data Ketenagakerjaan platform published on Sunday, Sept. 14, 2025, West Java recorded the largest share in August with 261 workers, or 29.07% of the national total. South Sumatra followed with 113, East Kalimantan with 100, East Java with 51, Jakarta with 48, South Sulawesi with 38, and Banten with 36.
From January to August, the sharpest monthly spike occurred in February, when 17,796 workers lost their jobs. The detailed August data was compiled by the Data and Information Technology Center for Manpower (Pusdatik).
Government Pushes Green and Manufacturing Jobs
Amid labor market pressures, the government has sought to highlight opportunities in green jobs and manufacturing as sources of future employment.
Minister of Manpower Yassierli said on Friday, Sept. 12, 2025, that green jobs are expected to dominate Indonesia’s employment structure by 2045. Speaking at the Polytechnic of Manpower in Jakarta, he urged students to prepare through continuous learning and vocational training.
“Our grand vision is Indonesia Emas 2045, where Indonesia becomes an advanced country and one of the world’s five largest economies. To achieve this, the role of students is very important and must be prepared from now. This is the challenge we must face together,” Yassierli said.
He explained that green jobs are occupations contributing to preserving or restoring the environment, whether through specialized skills, eco-friendly processes, or sustainable outputs. He emphasized that vocational education will be vital to produce competent workers for a greener economy.
Manufacturing Still the Largest Employer
Deputy Minister of Investment and Downstreaming Todotua Pasaribu said on Wednesday, Aug. 27, 2025, that labor-intensive industries such as textiles, footwear, food and beverages, electronics, and automotive continue to dominate job absorption.
Speaking at a public discussion in South Jakarta, he contrasted this with downstream mineral processing projects, which employ fewer workers but generate significant economic ecosystems.
“Which sector absorbs the most labor? Manufacturing. Why? Because it is still labor-intensive. Other sectors, such as downstream mineral processing, are more focused on technology strategy,” Todotua said.
Senior Expert at the Presidential Communication Office Fithra Faisal, at the same event, added that manufacturing contributes 19% to Indonesia’s economy and underscored the need to strengthen human capital.
According to government data, investment created about 1.2 million new jobs in the first half of 2025, with projections of 3.5 to 3.6 million for the full year.
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