Indonesia unemployment rate falls to 4.75 percent in August 2026

According to data from the Indonesian Central Bureau of Statistics (BPS), the number of unemployed individuals in Indonesia decreased to 7.38 million in August 2026, a reduction of 77,000 people compared to August 2025. The open unemployment rate fell to 4.75 percent, down from 4.85 percent in the previous year.

The total working population reached 147.99 million, an increase of 1.44 million people year-on-year. The Ministry of Manpower’s MagangHub program contributed to this trend, absorbing approximately 46,000 participants in its first batch in August 2026.

Despite the decline in unemployment, wage disparities persist. The average monthly wage for workers was recorded at Rp 3.42 million. A gender gap remains, with men earning an average of Rp 3,667,753 compared to Rp 2,972,771 for women. Wages also vary significantly by sector and education, with the finance and insurance sector offering the highest average pay at Rp 5.35 million, while the agriculture and service sectors report the lowest.