DIY labor market shows rising formal employment despite informal worker majority

In the Special Region of Yogyakarta (DIY), informal workers remain the majority, accounting for 52.41% of the workforce, or approximately 1.15 million people, as of May 2026.

Despite this dominance, data from the Central Bureau of Statistics (BPS) indicates a slight shift in the labor composition. The proportion of formal workers rose to 47.59% (1.05 million people) in May 2026, up from 46.02% in February 2026. Ariyanto Wibowo, Head of Disnakertrans DIY, noted that there has been no surge in informal employment; rather, the formal sector has seen incremental growth.

The high percentage of informal workers is attributed to the regional market's reliance on agriculture, trade, and micro, small, and medium enterprises (MSMEs). Labor representatives suggest that the prevalence of self-employment is driven by a gap between the high demand for jobs and the limited availability of formal employment opportunities.