Indonesia’s labor market shows signs of improvement as the country’s unemployment figures continue a downward trend. According to the latest data from Statistics Indonesia (BPS), the number of unemployed individuals in the country fell by 35,000, bringing the total to 7.24 million as of February 2026. Consequently, the open unemployment rate (TPT) experienced a 0.08% decline, settling at 4.68%.
BPS Head Amalia Adininggar Widyasanti revealed that the total labor force has expanded significantly. Based on the National Labor Force Survey (Sakernas), the labor force reached 154.91 million in February 2026, an increase of 1.862 million people compared to February 2025. This growth was matched by a rise in the number of employed individuals, which grew by 1.896 million to reach 147.76 million.
A Decline Across Regions
“The number of unemployed people has decreased to 7.24 million. This positive shift is evident in both urban and rural areas,” Amalia stated during a press conference on Tuesday, May 5. Urban unemployment rates dropped from 5.73% to 5.6%, while rural areas saw a decline from 3.33% to 3.2%. Currently, the agriculture, forestry, and fisheries sectors remain the largest employers, absorbing 42.49 million people, or 28.78% of the total working population.
When analyzing unemployment by education level, high school graduates continue to represent the largest share of the unemployed, accounting for 28%. In contrast, individuals with diploma degrees (I/II/III) represent a much smaller segment, with unemployment in this group reaching only 2.48%.
Addressing Underemployment Challenges
Despite the overall improvement, BPS highlighted the ongoing challenge of underemployment—individuals working fewer than 35 hours per week who are actively seeking more work or are open to additional job opportunities. As of February 2026, the underemployment rate stands at 7.27%, meaning approximately seven out of every 100 employed people are considered underemployed.
While this figure remains a concern, there is a clear trend toward improvement. Compared to the data from February 2025, the underemployment rate has successfully decreased by 0.74%, signaling a gradual strengthening of the labor market as more workers secure full-time hours.
Summary
Indonesia’s labor market demonstrated positive growth in February 2026, with the number of unemployed individuals falling to 7.24 million, representing an open unemployment rate of 4.68%. This improvement occurred alongside a significant expansion of the national labor force, which reached 154.91 million people. Employment gains were observed across both urban and rural regions, with the agriculture, forestry, and fisheries sectors continuing to serve as the primary sources of employment.
Despite these gains, the country still faces challenges regarding underemployment, which currently affects 7.27% of the working population. However, this figure reflects a 0.74% decline compared to the previous year, indicating a steady trend toward more stable, full-time employment. Education remains a factor in job market accessibility, as high school graduates currently constitute the largest share of the unemployed population.
