BPS: Open Unemployment Rate Decreases Slightly as of February
Translated from Indonesian, summarized and contextualized by DistantNews.
TLDR
- Indonesia's open unemployment rate slightly decreased to 4.68% in February 2026, down 0.08% year-on-year, with 7.24 million people unemployed.
- The total workforce increased, with a significant rise in those employed as laborers/employees/officials, contributing to a 40.58% formal worker proportion.
- Unemployment saw reductions across both genders and in urban and rural areas, with a notable increase in full-time workers.
The latest figures from the Central Statistics Agency (BPS) indicate a marginal improvement in Indonesia's labor market, with the open unemployment rate ticking down to 4.68% in February 2026. While this slight decrease from 4.76% a year prior might seem modest, it represents a positive trend amidst global economic uncertainties. The total number of people employed has grown, particularly in formal sectors, which is a key indicator of economic health and stability for the archipelago.
BPS Head Amalia Adininggar Widyasanti highlighted that this decline is not confined to a single demographic or region; it's a nationwide phenomenon affecting both men and women, as well as urban and rural populations. The increase in formal employment, specifically among laborers, employees, and officials, suggests a strengthening of the job market's structure. This is crucial for Indonesia, as formal employment often correlates with better social security and economic stability for individuals and their families.
The open unemployment rate is 4.68% (7.24 million).
Furthermore, the data reveals a rise in full-time employment, indicating that more Indonesians are engaged in stable, long-term work. While the majority of the workforce still has primary education or below, the growth in formal jobs and full-time positions points towards a gradual upskilling and formalization of the labor force. From an Indonesian perspective, these statistics are vital not just for economic policy but for the daily lives and aspirations of millions, reflecting progress in the nation's development goals. International coverage might focus on the headline percentage, but for us, the details about formalization and employment types paint a clearer picture of genuine economic advancement.
The number of formal workers in February 2026 increased to 59.93 million people or accounted for 40.58 percent of the total employed population.
Originally published by Tempo in Indonesian. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.