Indonesia’s unemployment drops to 9.1 million people by August 2021

Jakarta (Indonesia Window) – Indonesia’s Central Agency of Statistics has recorded the number of the unemployed in the country as of August 2021 as many as 9.1 million people, a decrease by 670,000 compared to 9.77 million people in the same period last year.

The agency recorded a decline in the national open unemployment rate from 7.07 percent to 6.49 percent by August 2021, the agency’s head Margo Yuwono said at a virtual press conference here on Friday (Nov. 5).

The open unemployment rate is an indicator used to measure employment that is not absorbed by the labor market and illustrates the underutilization of the labor supply.

The open unemployment rate per August 2021 of 6.49 percent means that out of 100 people in the workforce, there are around six unemployed.

In August 2021 the open unemployment rate fell by 0.58 percentage points compared to August 2020, but increased by 0.23 percentage points compared to February 2021.

In August 2021, the male open unemployment rate was 6.74 percent or higher than the female open unemployment rate of 6.11 percent.

Meanwhile, the male open unemployment rate in August 2021 fell compared to August 2020 (0.72 percentage point) and February 2021 (0.07 percentage point).

Meanwhile, the female open unemployment rate in August 2021 fell by 0.35 percentage points compared to August 2020 and increased by 0.70 percentage points compared to February 2021.

Based on places of residence, the urban open unemployment rate was recorded at 8.32 percent or almost twice as high as 4.17 percent in rural areas.

Compared to August 2020, the urban and rural open unemployment rates in August 2021 fell by 0.66 percentage points and 0.54 percentage points, respectively. However, compared to February 2021, the urban and rural open unemployment in August 2021 rose by 0.32 percentage points and 0.06 percentage points, respectively.

In August 2021, the population of 15 – 24 years old group had the highest open unemployment reaching 19.55 percent, while the population of the old age group above 60 years was the lowest at 2.73 percent.

Reporting by Indonesia Window