Unemployment Rate in Indonesia 2024, Highest in ASEAN!

Kapanlagi.com - As of February 2024, Indonesia has achieved encouraging results in addressing unemployment. Although the working-age population continues to increase, the latest report from the Central Statistics Agency (BPS) indicates that the number of unemployed is now recorded at only 7.2 million people. This figure represents a significant decrease from 7.99 million in February 2023, and is the lowest since the reform era of 1997, when the unemployment rate reached 4.69 million.

This decline is also reflected in the Open Unemployment Rate (TPT), which is now at 4.82%, down from 5.45% the previous year. Although Indonesia still faces various challenges, this achievement signifies an improvement that deserves appreciation.

On the other hand, the working-age population in the country as of February 2024 has reached 214 million, an increase of 2.41 million compared to last year. Not only that, the labor force has also increased, reaching 149.38 million people, which is up by 2.76 million from February 2023.

1. Decline in Unemployment and Trends Since 2022

Since August 2022, Indonesia has shown a promising trend of declining unemployment rates. However, the latest data from the International Monetary Fund (IMF) as of April 2024 reveals that although this positive trend continues, the unemployment rate in Indonesia still stands at 5.2%, making it the highest among ASEAN countries, significantly trailing behind Thailand, which only recorded 1.1%.

In a global context, Indonesia ranks 57th on the list of countries with the highest unemployment rates, while Sudan in North Africa tops the list with a staggering figure of 49.5%.

2. Labor Force Development in Indonesia

The Central Statistics Agency (BPS) reported interesting news about labor force development in Indonesia, which now reaches 149.38 million people as of February 2024, an increase of 2.76 million compared to last year. In this regard, the number of people who have successfully found jobs also shows progress, with a total of 142.18 million workers, an increase of 3.55 million from the previous year.

However, behind these positive numbers, BPS Deputy Head, Amalia Adininggar Widyasanti, revealed the ongoing challenges: about 7.20 million people are still trapped in unemployment status. This indicates the need for effective strategies to absorb new workers, especially amid the surge in the working-age population that continues to grow.

3. Unemployment Based on Education Level

Data from BPS reveals shocking facts about unemployment in Indonesia: high school graduates top the list with 2.1 million unemployed, followed by vocational school and junior high school graduates, recording 1.6 million and 1.1 million unemployed respectively.

On the other hand, the group least affected by unemployment are those who have not or have not yet graduated from elementary school (394 thousand), diploma holders (173 thousand), and those who have never attended school at all (13 thousand). Interestingly, the higher the level of education attained, the lower the recorded unemployment rate.

However, significant challenges such as strict requirements from companies regarding work experience and age limits often become obstacles for new job seekers to obtain their dream opportunities.

4. Challenges in the Modern Job Market

The high unemployment rate in the country is triggered by a lack of interest from employers to open job vacancies, compounded by requirements that often burden job seekers. Many fresh graduates complain about the mandatory 1-2 years of work experience that is almost always imposed, making their chances of getting a job slimmer.

"If all companies require experience, fresh graduates will be stuck," said a labor observer. Not only that, age limits in job applications also pose a significant problem, especially for those who want to re-enter the job market while in their productive age.

5. Government Efforts in Addressing Unemployment

President Prabowo Subianto has assigned an important task to the Ministry of Manpower (Kemnaker) to tackle unemployment with careful and directed strategies.

Deputy Minister of Manpower, Immanuel Ebenezer Gerungan, emphasized, "We have been entrusted by the president to carry out a mission focused on the welfare of the people. Unemployment is a crucial issue that we will address seriously."

In this effort, Kemnaker is committed to launching various initiatives, ranging from skills training to support policies for workers affected by layoffs.

With these measures, it is hoped that new job opportunities will be created that not only address current challenges but also build a superior generation to welcome Indonesia in 2045.

(kpl/rmt)