At Least 7.20 Million People Are Still Unemployed

The number of unemployed people in Indonesia as of February 2024 reached 7.20 million people.

KOMPAS/AGUS SUSANTO

Job seekers queue to enter the job fair exhibition at Grand Mall Bekasi, Bekasi City, West Java, on Monday (4/3/2024). Around 8,000 applicants are competing for job vacancies provided by 35 national companies.

JAKARTA, KOMPAS — The number of unemployed individuals in Indonesia has gradually decreased from its peak position during the Covid-19 pandemic period. However, the number is still higher compared to before the pandemic, at least during the 2018-2019 period.

The number of unemployed people in February 2018 and February 2019 were 6.87 million and 6.82 million, respectively. In February 2020, when Indonesia had not yet experienced the pandemic, the number of unemployed had already risen to 6.88 million.

The number of unemployed skyrocketed in February 2021 to 8.75 million people. This is the highest number of unemployed during the pandemic. With efforts to control the pandemic, the number of unemployed gradually decreased.

Even though it has decreased, the current number of unemployed is still higher than before the pandemic.

Successively, the numbers were 8.40 million people in 2022 and 7.99 million people in 2023. In 2024, the downward trend continued. According to the announcement from the Central Statistics Agency on Monday (5/6/2024), the number of unemployed as of February 2024 was 7.20 million people.

Despite decreasing, the number of current unemployed is still higher compared to before the pandemic. As mentioned above, the number of unemployed in February 2018 was 6.87 million people and in February 2019 it was 6.82 million people.

KOMPAS/KRISTIAN OKA PRASETYADI

Pages of curriculum vitae (CV) belonging to job seekers are stacked on the table at one of the job vacancy booths at a job fair at the Manado Town Square 3 mall, Manado, North Sulawesi, Friday (28/7/2023 ). A total of 1,500 job vacancies were provided at the event.

Acting Head of the Central Statistics Agency (BPS), Amalia Adininggar Widyasanti, in a press statement, said that the level of unemployment as of February 2024 was lower compared to the same period in the previous year. This figure is also lower than the unemployment rate before the Covid-19 pandemic.

BPS noted, manpower as of February 2024 was mostly absorbed in the accommodation and food and beverage sector with 960,000 people, the trade sector with 850,000 people, and the government administration sector absorbing 760,000 workers.

"The decline in open unemployment rates has consistently occurred in both male and female residents, as well as in urban and rural areas. All of them are lower than pre-pandemic conditions, at least as of February 2020," said Amalia.

KOMPAS/FERGANATA INDRA RIATMOKO

Representatives from companies provided information to job seekers attending the Bantul Career Expo job fair at Pendapa SMKN 1 Kasihan, Bantul, DI Yogyakarta, on Tuesday (8/8/2023). The event, which was held by the Bantul Manpower and Transmigration Agency, provided around 4,000 job vacancies from 35 companies.

Every year, BPS regularly releases open unemployment rate (TPT) data for February and August. They are each released in early May and November. For the February 2024 TPT, BPS released it on Monday (6/5/2024).

The number of workforce in February 2024 reached 142.18 million people, with 7.20 million of them being unemployed. Thus, the open unemployment rate is 4.82 percent.

Out of 100 citizens aged 15 and above who are available to produce goods and services (the workforce), 5 people are unemployed.

This means that out of 100 people aged 15 years and above available for producing goods and services (the workforce), 5 are unemployed. The population classified as the workforce includes those aged 15 years and above who are employed, have a job but are temporarily not working, and those who are unemployed.

The unemployment rate is an indicator used to measure the workforce that is not absorbed by the market. This also illustrates the underutilization of the labor supply.

KOMPAS/P RADITYA MAHENDRA YASA

Officials explained and presented their company to prospective applicants during a job fair at Plaza Simpang Lima, in Semarang City, Central Java, on Wednesday (25/1/2023). This job fair organized by companies that have job openings provides opportunities in various fields. The tight job competition makes them compete based on their skills, experience, and expertise in addition to formal education.

Quoting the BPS press release, the male labor force participation rate in February 2024 is 4.96 percent, higher than the female labor force participation rate at 4.60 percent. Both male and female labor force participation rates decreased compared to February 2023, each by 0.87 percentage points and 0.26 percentage points, respectively.

Based on the area of residence, the urban TPT (5.89 percent) is much higher compared to TPT in rural areas (3.37 percent). Meanwhile, based on age group, TPT of the 15-24 age group residents is the highest, reaching 16.42 percent.

The TPT for the population aged 60 years and over is the lowest, namely 1.14 percent.

Based on the highest education completed by the workforce, according to PBS, TPT who graduated from vocational high schools still have the highest percentage compared to graduates of other education levels in February 2024, which is at 8.62 percent.

Meanwhile, the lowest TPT was for those with an elementary education background or below, namely 2.38 percent.