Jakarta (ANTARA) \u2013 Indonesia created 1.9 million new jobs between\nAugust 2024 and August 2025. Over the same period, the open unemployment\nrate fell to 4.9 per cent. These figures show that the economy is still\nable to provide employment opportunities for the public.<\/p>\n
However, the World Bank\u2019s June 2026 Indonesia Economic Prospects\nreport also highlights challenges that require attention. Almost half of\nthe new jobs were in relatively low-productivity sectors, particularly\nagriculture, accommodation and food services.<\/p>\n
In August 2025, part-time workers working fewer than 35 hours a week\naccounted for 32.7 per cent of the workforce, while real wages for\nmedium- and highly skilled workers had fallen by around one to two per\ncent annually since 2018.<\/p>\n
Together, these figures point to the next challenge for Indonesia\u2019s\ndevelopment. Job creation is an important achievement, but the next task\nis to ensure that jobs can raise incomes and open a path to a more\nprosperous life.<\/p>\n
Indonesia\u2019s economic growth has shown positive momentum. In the first\nquarter of 2026, the economy grew by 5.6 per cent year on year. The\nWorld Bank forecasts growth of 5.0 per cent in 2026, rising to 5.2 per\ncent in 2027 and 2028. These projections indicate that the foundations\nfor growth remain in place, although global uncertainty continues to\nloom.<\/p>\n
This momentum should be used to improve the quality of growth.\nDevelopment success depends not only on how quickly the economy expands,\nbut also on how widely people can access opportunities to improve their\nwellbeing.<\/p>\n
Jobs as a route to economic mobility<\/p>\n
For most households, work is the main route to a better life.\nEarnings pay for everyday needs, children\u2019s education, healthcare and\nsavings for the future.<\/p>\n
Productive work that provides adequate income also helps households\nbuild resilience when faced with rising prices or economic shocks.<\/p>\n
Having a job and having a job that can improve one\u2019s wellbeing are\nrelated, but they are not always the same. Someone may be counted as\nemployed while still facing limited working hours or inadequate\nincome.<\/p>\n
Small businesses can absorb labour, but may struggle to increase\nproductivity because of limited access to technology, finance and\nmarkets. Similarly, secondary- and higher-education graduates need job\nopportunities that match their skills for their investment in education\nto deliver economic benefits.<\/p>\n
These challenges help explain why economic growth does not\nnecessarily expand the middle-income population automatically. The World\nBank notes that the share of workers earning middle-class incomes fell\nfrom 14.5 per cent in 2018 to around 7 per cent in 2025.<\/p>\n
This finding is an important reminder that expanding economic\nopportunities must go hand in hand with improving workers\u2019 productivity\nand incomes.<\/p>\n
The figure does not mean that everyone\u2019s wellbeing has declined.\nHowever, the trend merits reflection to ensure that Indonesia\u2019s economic\ntransformation becomes more effective at creating jobs with better\nincome prospects.<\/p>\n
The middle class plays an important role in development. As well as\nsupporting domestic consumption, it helps drive business growth,\nencourages investment in education and healthcare, and strengthens\nhousehold economic resilience.<\/p>\n
Expanding the middle class is therefore not simply a matter of\nincreasing the number of people in a particular income bracket. More\nbroadly, it means widening opportunities for people to improve their\ncapabilities, productivity and living standards sustainably.<\/p>\n
Expanding opportunities through productivity<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/the-path-to-the-middle-class-starts-with-better-jobs-1792410713", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }