Indonesian Unemployment Dips to 7.22 Million in May 2026, BPS Reports

JAKARTA - The Central Statistics Agency (BPS) reported that the number of unemployed in Indonesia in May 2026 fell to 7.22 million people. This figure represents a decrease of approximately 24,000 people compared to February 2026, coinciding with an increase in the working population. M. Edy Mahmud, BPS Deputy for Balance and Statistical Analysis, stated that this decline also contributed to the Open Unemployment Rate (TPT) dropping to 4.65 percent, lower than the 4.68 percent recorded in February 2026. "There are as many as 7.22 million unemployed, equivalent to an open unemployment rate of 4.65 percent. This figure is lower compared to February 2026, which was 4.68 percent, a decrease of about 0.03 percentage points," he said during a press conference on Wednesday, August 5. According to Mahmud, the reduction in the unemployment rate was observed across both male and female demographics, and was evident in both urban and rural areas. Concurrently, the number of employed individuals rose to 148.19 million people, an increase of around 522,000 compared to February 2026. Of this working population, 98.98 million people were in full-time employment, 38.42 million were part-time workers, and 10.79 million were classified as underemployed. Furthermore, BPS recorded the labor force in May 2026 at 155.41 million people, up by approximately 497,000 from February 2026. The Labor Force Participation Rate (TPAK) saw a slight increase from 70.56 percent to 70.57 percent. By business sector, the accommodation and food and beverage provision sector was the largest absorber of labor, adding 195,000 workers. The transportation and warehousing sector followed, recording an addition of 121,000 workers. Overall, BPS noted that the majority of business sectors experienced an increase in the number of workers compared to February 2026. However, the composition of Indonesia's workforce remains dominated by individuals with lower educational attainment. As of May 2026, 35.40 percent of the working population had an elementary education or less, while diploma graduates and those with higher education constituted only 13.18 percent. Additionally, the proportion of workers in the informal sector saw a slight decrease, accounting for 59.30 percent of the total working population.