Jakarta. Indonesia’s open unemployment rate edged down to 4.76 percent in February 2025 from 4.82 percent a year earlier, according to the Central Statistics Agency (BPS). But the drop in percentage terms masks a worrying trend, as the number of unemployed people actually rose.

“There was a slight decline in the unemployment rate. However, the number of unemployed individuals increased from 7.20 million to 7.28 million, an increase of around 80,000 people,” BPS Chief Amalia Adininggar Widyasanti said at a press briefing in Jakarta on Monday.

The rise in unemployment in absolute terms was largely attributed to the expanding labor force, which grew faster than the economy's capacity to absorb new workers. "The labor force has grown significantly, but not all new entrants are being absorbed into employment," Amalia explained.

Indonesia’s labor force reached 153.05 million in February 2025, up by 3.67 million from a year earlier. Of this number, 145.77 million were employed while 7.28 million remained jobless. The working-age population stood at 216.79 million.

The BPS also noted an increase in informal employment, which rose from 59.17 percent in February 2024 to 59.40 percent this year, indicating a large share of Indonesians still work without adequate legal or social protection.

Job creation was strongest in the trade sector, which added 980,000 jobs over the past year. Agriculture absorbed 890,000 new workers, while the manufacturing sector gained 720,000 jobs.

Based on working hours, 66.19 percent of workers were employed full-time, while 25.81 percent worked part-time and 8 percent were classified as underemployed. The underemployed are defined as people working less than 35 hours per week who are still seeking or willing to accept additional work.

Urban Joblessness Remains Higher

Unemployment remained more pronounced in urban areas (5.73 percent) compared to rural areas (3.33 percent). Both saw slight improvements from a year ago, with urban and rural unemployment dropping by 0.16 and 0.04 percentage points, respectively.

Youth unemployment (ages 15–24) continued to be the highest among age groups, at 16.16 percent, while the lowest rate was among those aged 60 and above, at 1.67 percent. However, the elderly group was the only one to see an increase in unemployment, rising by 0.53 percentage points compared to last year.

When analyzed by education level, vocational school graduates faced the highest unemployment rate at 8 percent, while those with only primary school education or less had the lowest, at 2.32 percent. This trend has remained consistent since 2023, according to BPS.

Amalia said that while the unemployment rate has improved marginally, the overall employment quality and inclusion still pose serious challenges. “We must not only focus on creating jobs but also on improving the quality and formality of those jobs,” she said.