Jakarta. Indonesia’s open unemployment rate dropped to 4.91 percent, or 7.47 million people out of the 152 million workforce, in August 2024, reflecting steady economic recovery as more Indonesians secured jobs, according to the national statistics agency, BPS.

This improvement marks a 0.41 percentage point decrease from the previous year, driven by gains in sectors like agriculture and services, as well as increased workforce participation.

“Male unemployment in August was 4.9 percent, slightly lower than the female rate of 4.92 percent. By region, urban unemployment was higher at 5.79 percent, compared to rural areas at 3.67 percent,” said BPS Acting Head Amalia Adininggar Widyasanti on Tuesday.

The working-age population in August reached 215.37 million, an increase of 2.78 million people from the previous year, with 152.11 million actively participating in the labor force. Amalia said that this trend reflects a gradual decline in unemployment since its peak in 2020 during the onset of the COVID-19 pandemic.

In August 2024, the number of employed individuals reached 144.64 million, an increase of 4.79 million from the previous year. Agriculture, forestry, and fisheries showed the largest job gains, adding 1.31 million workers.

The majority of employed Indonesians, 35.8 percent, have only elementary education or less. Meanwhile, those with higher education qualifications—such as diplomas and university degrees—represent only 12.82 percent of the workforce.

"This distribution is consistent with patterns observed in August 2022 and August 2023, highlighting a persistent educational divide within Indonesia’s labor force," Amalia said.

Among age groups, the youth unemployment rate (ages 15-24) remained the highest at 17.32 percent, while those aged 60 and over had the lowest rate at 1.49%.

The average wage in August 2024 was Rp 3.27 million, reflecting a 2.81 percent increase from Rp 3.18 million in August 2023. Male workers earned an average of Rp 3.54 million, compared to Rp 2.77 million for female workers. The mining and quarrying sector offered the highest average wage at Rp 5.23 million, while the lowest was in other service activities at Rp 1.99 million.

The BPS survey showed a positive correlation between wage levels and education. Workers with university degrees earned an average of Rp 4.96 million, more than double the Rp 2.08 million earned by those with only elementary education or lower.

In his final State of the Nation Address, former President Joko Widodo reiterated the government’s targets to reduce unemployment to 4.5-5 percent and poverty to 7-8 percent by 2025.