HOLOPIS.COM, JAKARTA – Indonesia’s labor market continued to strengthen in May 2026, with the number of employed people increasing by 522,000 compared with February, according to the latest data from Statistics Indonesia (BPS).
The improvement also contributed to a decline in the country’s open unemployment rate, reflecting continued gains in employment across multiple sectors.
Based on the National Labor Force Survey (Sakernas), Indonesia’s labor force reached 155.41 million people in May 2026, an increase of approximately 497,000 from three months earlier.
Meanwhile, the Labor Force Participation Rate (LFPR) stood at 70.57%, up 0.01 percentage points from February. The number of employed people rose to 148.19 million, an increase of 522,000 over the same period.
M. Edy Mahmud, Deputy for National Accounts and Statistical Analysis at BPS, said employment growth was recorded across several categories of workers.
“Of those employed, 98.98 million are full-time workers, representing an increase of 391,000 people,” Edy said during a press conference at the BPS headquarters in Jakarta on Wednesday, as reported by Holopis.com, Thursday (6/8).
He added that the number of part-time and underemployed workers also increased.
“Part-time workers totaled 38.42 million, up by 72,000, while the number of underemployed workers reached 10.79 million, an increase of 59,000,” he said.
Agriculture Remains Indonesia’s Largest Employer
BPS data showed that the agriculture, forestry, and fisheries sector remained the country’s largest source of employment.
A total of 42.60 million people worked in the sector, accounting for 28.75% of Indonesia’s employed population. The number of formal-sector workers also continued to grow.
As of May 2026, formal employment reached 60.31 million workers, representing 40.70% of total employment, an increase of 0.12 percentage points compared with February.
Worker mobility also improved during the period.
BPS recorded 7.74 million commuter workers, an increase of around 554,000 over the previous three months.
Unemployment Rate Falls
The rise in employment contributed to a further decline in Indonesia’s unemployment rate. BPS reported that the Open Unemployment Rate (TPT) fell to 4.65% in May 2026, down 0.03 percentage points from February.
According to Edy, the improvement was seen across both urban and rural areas.
