Indonesia 2026 Job Market Tightens as AI Drives Layoffs

A 2026 survey by the National Association of Colleges and Employers shows that Indonesian employers will intensify competition for new graduates. Finance, mechanical engineering, computer science and related fields remain the most sought after, while entry‑level salaries are rising in most majors except some social‑science disciplines.

At the same time, high‑paying professions such as software engineers, junior developers and recruiters are experiencing significant layoffs as companies adopt generative AI and streamline operations. The trend forces job seekers to build stronger portfolios, acquire AI‑related skills and improve soft‑skill capabilities to remain competitive in the tighter labour market.