Indonesia’s unemployment rate falls to 4.65% in May
About 7.22 million people remained unemployed, while the labour force reached 155.41 million, according to Statistics Indonesia.
Indonesia recorded an open unemployment rate of 4.65% in May 2026, down 0.03 percentage points from February’s 4.68%, according to Statistics Indonesia (BPS). About 7.22 million people were still without work.
BPS put the labour force at 155.41 million people, with 148.19 million employed. Between February and May, the labour force expanded by about 497,000 people, while employment rose by around 522,000.
The Coordinating Ministry for Economic Affairs said the May rate was approaching the 4.36% level recorded in 1994. It cited a labour force of about 83.32 million in the 1990s, compared with 155.41 million now. Unemployment stood at 11.24% in 2005 and 7.07% during the Covid-19 pandemic in 2020.
Ministry spokesman Haryo Limanseto attributed the decline to government programmes supporting the real economy and investment. The ministry said the trend was consistent with economic recovery and increased hiring capacity in industry and investment.
Haryo said the government was seeking to improve workforce quality as well as maintain low unemployment, with the aim of raising living standards. Its priorities include vocational training, upskilling and better use of industrial capacity.
