Gotrade News - Indonesia's Open Unemployment Rate fell to 4.68% in February 2026. The Statistics Agency (BPS) recorded 7.24 million unemployed out of a 154.91 million labor force.
BPS Head Amalia Adininggar Widyasanti said the number of employed Indonesians rose 1.896 million to 147.76 million. Job creation outpaced labor force growth of 1.862 million compared with February 2025.
Key Takeaways:
- Unemployment dropped to 4.68%, or 7.24 million people, in February 2026.
- Job creation of 1.896 million outpaced labor force growth of 1.862 million.
- Agriculture, trade, and manufacturing absorb 60.29% of national employment.
Agriculture, forestry, and fisheries remained the largest employer in Indonesia. BPS recorded 42.49 million workers in this sector, or 28.78% of the total workforce.
Unemployment fell across both urban and rural areas over the past year. Urban joblessness dropped from 5.73% to 5.60%, while rural rates fell from 3.33% to 3.20%.
Formal employment expanded from 59.19 million to 59.93 million workers year-on-year. Informal employment also rose from 86.58 million to 87.74 million during the same period.
Full-time workers logging 35 hours or more per week now account for 66.77% of jobs. This figure rose marginally from 66.19% in February 2025, signaling improving employment quality.
BPS flagged persistent unemployment among high school graduates as a structural challenge. SMA-level graduates made up 28% of the unemployed population in February 2026.
The underemployment rate stood at 7.27%, or roughly seven of every 100 employed workers. This marked a 0.74 percentage-point improvement versus February 2025, BPS data shows.
For investors, the data points to firmer domestic demand and improving consumer purchasing power. Global investors can track Indonesia exposure via the iShares MSCI Indonesia ETF (EIDO).
On Tuesday (5/5), this employment data aligned with the broader 5.61% Q1 2026 GDP release. BPS noted job creation exceeding labor force growth as a positive indicator for the domestic economy.
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