Unemployment Rate: Indonesia

Analysis# Indonesia Unemployment Rate Indonesia's unemployment rate stands at 5% in 2026, reflecting a labor market that has stabilized after years of volatility. Since 1984, the rate has increased 212.5% from its historic low of 1.6%, though it remains well below the all-time peak of 11.2% recorded in 2005. The country's long-term trajectory shows a general upward shift in structural unemployment, even as recent years demonstrate improved conditions compared to the mid-2000s crisis period. A sharp spike to 7.1% in 2020 marked the pandemic's impact, followed by a sustained recovery through 2024 when the rate fell to 4.9%. The 2024-2026 period shows stabilization around 5%, suggesting Indonesia has found a moderate equilibrium in its labor market. Maintaining this level will depend on whether economic growth continues supporting job creation across manufacturing and service sectors.