Mojokerto, East Java. Indonesia's open unemployment rate has decreased to 4.8 percent from 7 percent over the past four years, Manpower Minister Ida Fauziyah announced on Saturday.

Her statement comes in the wake of massive layoffs in the textile industry, which has seen at least 13,800 workers lose their jobs. The actual number may be higher, as many dismissed workers do not report their job losses to government agencies.

"Despite the global economic challenges, we have remained resilient and managed to navigate economic hardships better than many other countries. In 2020, our unemployment rate was as high as 7 percent," Ida said during the opening of the Asy-Syarif Mitra Industri Vocational High School in Mojokerto, East Java.

"Although the unemployment rate is trending downwards, we are not complacent, as there are still 7.2 million people without jobs," she added.

Ida's goal is to reduce the unemployment rate to the natural rate, which signifies full employment in the economy. Indonesia's natural unemployment rate is currently at 4 percent.

"We are very close to reaching the natural unemployment rate, and we continue to make efforts to lower the open unemployment rate further," Ida said.

She added that job-oriented vocational schools play a crucial role in reducing unemployment and supporting the development of numerous special industrial zones across the country.