Jakarta.  Indonesia’s workforce is feeling the strain of the global economic slowdown, with a significant rise in job losses. The Manpower Ministry reports that 32,064 workers were laid off between January and June 2024, marking a 21.4 percent increase from 26,400 layoffs in the same period last year.

Central Statistics Agency (BPS) data shows the unemployment rate at 4.82 percent in February 2024, a decrease of 0.63 percentage points from the previous year. Youth aged 15-24 face the highest unemployment rate at 16.42 percent, while those aged 25-59 have a lower rate of 3.08 percent.

Vice President Ma'ruf Amin noted that this challenge is global, driven by economic conditions and fierce job market competition. To counter this, the government is focusing on increasing job opportunities through foreign investment.

“We are working to attract more foreign investment to create jobs,” Ma’ruf stated in Bantul, Yogyakarta. He stressed the need for job seekers to acquire skills aligned with industry demands and highlighted the importance of vocational training.

Additionally, the government is fostering creative economy growth and supporting small businesses through microloans (KUR) and revitalizing unused lands for modern agriculture.

Deputy Minister of Manpower Afriansyah Noor noted that the Ministry is analyzing the rise in layoffs, particularly in labor-intensive sectors. While some businesses are closing, new investments in these sectors are emerging, focusing on leveraging local human resources.

“The global downturn has diminished demand, affecting factories previously set up for exports,” Afriansyah said in Makassar, South Sulawesi.

Previously, the Confederation of Indonesian Workers (KSPN) claimed nearly 50,000 layoffs in the textile and textile products (TPT) industry from January 2024 to early June. However, many companies prefer not to disclose this information for fear of affecting their banking relationships and buyer trust.

The highest number of layoffs has been reported in West Java and Central Java, where the largest concentration of the textile industry is located.