The labour market in Indonesia, 2001-2024
Indonesia’s labour market absorbed over 50 million additional workers between 2001 and 2024, while unemployment fell from 8% to under 5%. Yet job quality has not kept pace. Structural transformation, the movement of workers out of agriculture, has largely bypassed manufacturing and channeled labour into low-value-added services; 58% of workers remain informal; median earnings stand roughly 40% below the average minimum wage, even though more than a quarter of the workforce works over 48 hours per week; and female labour force participation trails male participation by 28 percentage points. These four interconnected features define Indonesia’s labour market challenge.
Authors
- kelvin ramadhan hidayat
- Eny Sulistyaningrum (ORCID: https://orcid.org/0000-0001-8246-2417)
- Wisnu Setiadi Nugroho (ORCID: https://orcid.org/0000-0003-0632-0200)
Institutions
- Universitas Gadjah Mada (ID)
- Barcelona School of Economics (ES)
Publication Details
- Journal
- IZA World of Labor
- Published
- 2026-11-04
- DOI
- https://doi.org/10.66255/wol.533
- Primary Topic
- Labor market dynamics and wage inequality
- Type
- article
- Field-Weighted Citation Impact
- 0.00