Unemployment Declines to 7.46 Million in August 2025, Driven by Strong Job Creation in Agriculture and Manufacturing
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JAKARTA, Investortrust.id — Indonesia’s unemployment has declined slightly to 7.46 million people as of August 2025, supported by higher employment in agriculture, manufacturing, and services, according to the latest report from Statistics Indonesia.
Deputy for National Accounts and Statistical Analysis at Statistics Indonesia Moh Edy Mahmud said the country’s working-age population reached 218.17 million, up by 2.80 million from the same period last year. The labor force rose by 1.89 million to 154 million people, while the non-labor population fell by 910,000 to 64.17 million.
The number of employed people climbed to 146.54 million, an increase of 1.9 million from the previous year. The total includes 98.65 million full-time workers, 36.39 million part-time workers, and 11.6 million underemployed individuals.
Edy noted that the 7.46 million unemployed were mainly composed of those recently laid off, individuals temporarily out of work, and business owners whose operations were inactive at the time of data collection.
“Most layoffs occurred in the manufacturing, mining, and trade sectors,” he said in a press briefing in Jakarta on Wednesday, Nov 5, 2025.
The labor force participation rate (LFPR) edged down slightly from 70.63% in August 2024 to 70.59% this year. The male LFPR declined from 84.66% to 84.4%, while female participation improved from 56.42% to 56.63%, signaling stronger engagement of women in the workforce.
By sector, agriculture, trade, and manufacturing remained the top employment providers. The biggest year-on-year employment gains were recorded in agriculture with 490,000 new workers, followed by accommodation and food services with 420,000, and manufacturing with 300,000.