{
    "success": true,
    "data": {
        "id": 1677736,
        "msgid": "indonesias-workforce-grows-faster-than-jobs-1-5-million-left-behind-1776189083",
        "date": "2026-04-14 18:24:02",
        "title": "Indonesia's Workforce Grows Faster Than Jobs, 1.5 Million Left Behind",
        "author": " ",
        "source": "GALERT",
        "tags": "",
        "topic": "Economy",
        "summary": "Indonesia faces a labour market imbalance as the workforce expands by 3.5 million people annually, while the economy absorbs only about 2 million, leaving 1.5 million unabsorbed each year, according to the Indonesian Employers Association (Apindo). Despite steady 5% economic growth, around 60% of workers remain in the informal sector with lower security and income, exacerbated by low educational attainment where 34.6% have only elementary education or less. Apindo urges increased investment in training and more flexible labour policies to enhance productivity and address regulatory uncertainties.",
        "content": "<p>Indonesia\u2019s Workforce Grows Faster Than Jobs, 1.5 Million Left\nBehind<\/p>\n<p>Jakarta. Indonesia is facing a growing labor market imbalance, with\naround 1.5 million workers left unabsorbed each year as job creation\nlags behind incoming job seekers, the Indonesian Employers Association\n(Apindo) warned on Tuesday.<\/p>\n<p>According to Bob Azam, head of labor affairs at Apindo, about 3.5\nmillion people enter the workforce annually, while the economy is only\nable to absorb roughly 2 million.<\/p>\n<p>\u201cOur labor conditions are showing warning signs,\u201d Bob said during a\nhearing with House Commission IX at the parliamentary complex.<\/p>\n<p>Despite Indonesia\u2019s steady economic growth of around 5%, job creation\nremains limited. The imbalance risks pushing more workers into the\ninformal sector, where job security and income stability are typically\nlower.<\/p>\n<p>Apindo estimates that around 60% of Indonesia\u2019s workforce is now\nemployed in the informal sector, compared to 40% in the formal economy.\nData from the Central Statistics Agency (BPS) supports this trend,\nshowing that as of November 2025, about 85.35 million people, or 57.7%\nof workers, were in informal employment, while 62.57 million, or 42.3%,\nwere in formal jobs.<\/p>\n<p>Beyond job availability, workforce quality remains a key challenge. A\nsignificant portion of Indonesia\u2019s labor force has relatively low\neducational attainment, limiting productivity and competitiveness.<\/p>\n<p>BPS data shows that 34.6% of employed workers have only elementary\neducation or lower, while university graduates account for just 10.8% of\nthe workforce.<\/p>\n<p>Indonesia\u2019s total labor force reached 155.27 million in November\n2025, with a labor force participation rate of 70.95%. The number of\nemployed people stood at 147.91 million, while the open unemployment\nrate was recorded at 4.74%.<\/p>\n<p>Bob said greater investment in training is urgently needed to help\nworkers transition into more productive and higher-paying jobs, but\nfunding for such programs remains limited.<\/p>\n<p>\u201cTraining needs are very high to enable workers to shift into more\nproductive jobs with better income,\u201d he said.<\/p>\n<p>Apindo also flagged regulatory uncertainty as a concern for\nbusinesses, adding that wage regulations have been revised multiple\ntimes over the past decade. The group called for more flexible labor\npolicies, balanced with stronger industrial relations at the company\nlevel.<\/p>\n<p>Tags: Keywords:<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/indonesias-workforce-grows-faster-than-jobs-1-5-million-left-behind-1776189083",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}