BPS Urges Holistic Labour Market Assessment Beyond Dismissal Data
BPS Chief Amalia Adininggar Widyasanti urged a comprehensive assessment of the national labour market, not solely based on dismissal data but also on new job absorptions.
‘When assessing the labour market, do not focus solely on dismissal data,’ Amalia said in Jakarta on Tuesday (26 May). ‘The labour market comprises employed individuals, the unemployed, those dismissed and those absorbed into jobs.’
BPS recorded Indonesia’s labour force at 154.91 million as of February 2026, with 147.67 million employed—a rise of approximately 1.9 million compared to the same period in 2025.
Amalia explained the new labour force additions stemmed from secondary and tertiary education graduates entering the job market. ‘The number absorbed into employment totalled 1.9 million,’ she said.
Open unemployment fell to 7.24 million from 7.28 million, a reduction of 34,700 year-on-year. Amalia noted this indicated the labour market’s ability to absorb new entrants despite global economic challenges.
‘Do not view the labour market solely through dismissal data,’ she reiterated.
She added that around 196,000 people experienced dismissals in the past year, of which 113,000 found new jobs and 14,000 left the labour force for education or family reasons. ‘Some are absorbed into jobs, some remain unemployed, some are dismissed, but others re-enter the workforce,’ she said.
BPS also reported the open unemployment rate dropped to 4.68% in February 2026 from 4.76% in February 2025.
Indonesia’s economy grew 5.61% year-on-year in Q1 2026, driven by household consumption, investment, and accelerated government spending. Sectorally, transport and warehousing expanded 8.04%, trade 6.26%, manufacturing 5.04%, and agriculture 4.97%, supporting job absorption across the economy.
Amalia stressed the need for a holistic labour market assessment to avoid perceiving employment conditions solely through dismissal figures. Labour data is crucial for understanding domestic economic conditions and national job absorption effectiveness.
Meanwhile, the government, via the Ministry of Manpower, continues expanding job creation and workforce competency programmes in 2026, including the National Vocational Training Programme targeting over 70,000 participants. Minister of Manpower Yassierli stated vocational training is a priority to enhance human capital and accelerate job absorption through industry-aligned schemes. The government is also implementing labour-intensive programmes, self-employment initiatives, and strengthening worker protection via the Job Loss Insurance (JKP) scheme to maintain labour market resilience amid global economic fluctuations.