Indonesia's job creation slows in Q2 2026, Bank Indonesia survey finds

Indonesia's labor market is showing signs of slowing down, with a notable decrease in job creation during the second quarter of 2026. A survey released by Bank Indonesia (BI) revealed that the weighted net balance for labor absorption stood at 0.14 percent, a significant drop from the 0.28 percent recorded in the first quarter.

Despite the overall slowdown, certain sectors managed to expand their workforce. The mining and quarrying sector saw a positive growth of 0.26 percent, while the construction sector added 0.07 percent to its employment figures. Trade and retail, along with financial services, also indicated positive trends, driven by increased vehicle sales and branch office expansions.

However, the manufacturing sector experienced the most significant contraction, with a labor absorption rate of -0.54 percent. Government administration, defense, and social security also saw a decline, recording -0.14 percent. Agriculture, forestry, and fisheries showed a modest increase of 0.23 percent.

Looking ahead to the third quarter of 2026, respondents anticipate an improvement, projecting a 0.95 percent increase in labor absorption. Growth is expected in agriculture, forestry, and fisheries, driven by harvests, as well as in the accommodation and food service sectors, and real estate. The manufacturing sector is also predicted to recover, though it is expected to remain in contraction territory at -0.14 percent.

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Some business fields that recorded an increase originated from the Mining and Quarrying field (SBT 0.26 percent) and Construction field (SBT 0.07 percent) in line with the increase in their business activities.