Indonesia’s labor market saw significant growth from August 2025 to August 2026, with 1.44 million more people employed, bringing the total number of employed individuals to 147.99 million, according to national employment statistics. This development highlights an ongoing positive trend in the country’s economic landscape.
During the same period, the Indonesian labor force expanded by approximately 1.37 million to reach 155.37 million people. Despite this growth, the labor force participation rate slightly declined to 70.33% in August 2026, down from 70.59% the previous year. Male participation continued to outpace female participation, with rates of 84.16% and 56.37%, respectively.
Agriculture remained the largest employment sector, employing 28.20% of the workforce. The wholesale and retail trade sector accounted for 17.86% of employment, while the manufacturing sector employed 13.75% of workers.
The unemployment rate in Indonesia saw a modest improvement, dropping to 4.75% in August 2026, a decrease of 0.09 percentage points from the previous year. The number of unemployed individuals fell by 77,000, totaling 7.38 million people.