Jakarta. Indonesia’s formal employment rate showed steady improvement in August 2025, with 42.20 percent of the total workforce engaged in formal jobs, up from 42.05 percent a year earlier, according to the Central Statistics Agency (BPS). The increase, though modest, reflects a gradual yet consistent enhancement in job quality as the economy maintains solid momentum.

The country’s open unemployment rate (TPT) eased slightly to 4.85 percent in August 2025 from 4.91 percent in the same month last year. This decline translates to about 7.46 million unemployed people.

BPS Deputy for National Accounts and Statistical Analysis Moh. Edy Mahmud said the agency recorded a decline in the unemployment rate, accompanied by a drop in the number of jobless individuals by around 400,000 people. “The share of workers in formal employment continued to rise between August 2024 and August 2025, mainly driven by an increase in employees and wage workers,” he said.

BPS data also revealed a shift in the educational background of Indonesia’s working population. The proportion of workers with a diploma or higher education increased to 10.84 percent from 10.50 percent the previous year, suggesting improving access to better-quality jobs. Conversely, those with primary school education or below dropped to 34.75 percent from 35.80 percent, signaling a gradual transformation toward a more skilled labor force.

According to the agency, the improvement in job quality indicates growing resilience in household income and spending power. With more workers participating in the formal sector, typically offering better pay, benefits, and job security, consumer purchasing power is expected to strengthen further. This, in turn, could help sustain domestic consumption, which continues to serve as the backbone of Indonesia’s economic growth.

As of August 2025, BPS also noted that full-time workers represented 67.32 percent of total employment, part-time workers accounted for 24.77 percent, and underemployed workers made up 7.91 percent. The distribution suggests a relatively stable employment landscape, with a majority of the workforce engaged in steady, full-time jobs despite global economic uncertainties.

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