Indonesia's Crude Labor Force Continues to Grow

Demographics

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Adi Ahdiat 30/01/2025 16:58 WIB

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According to the Indonesian Manpower Ministry's report, the number of unskilled workers in Indonesia has been steadily increasing in recent years and is projected to rise further in the future.

Number of Informal Workers in Indonesia (2018-2023)

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Number of Informal Workers in Indonesia (2018-2023)

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The number of unskilled workers in Indonesia has steadily increased in recent years and is projected to rise further in the future.

This is evident from the report, *Projection of Manpower Needs by Sector and Position*, released by the Ministry of Manpower (Kemnaker).

Unskilled workers are those with basic skills (basic skilled labor) who generally rely on physical strength.

Some examples include agricultural laborers, construction workers, processing industry workers, packaging workers, delivery couriers, porters, cleaning staff, kitchen helpers, garbage collectors, vehicle washers, street vendors, and so on.

According to the Kemnaker report, in 2018 there were approximately 22.71 million unskilled workers in Indonesia. This represented about 18% of the total national workforce.

This number gradually increased to 26.61 million in 2023, as shown in the graph. The proportion also rose to 19% of the total national workforce.

Cumulatively, from 2018 to 2023, the number of unskilled workers in Indonesia increased by approximately 3.9 million, or an average annual increase of 3.24%.

"This increase indicates the high demand for unskilled labor in various sectors as a mainstay of national economic activity," stated Kemnaker in its report.

Kemnaker also projects that the need for unskilled workers will increase to 33.23 million by 2029, equivalent to 21% of the total national workforce.

"Policymakers involved in education and training can use this projection to assess whether specific incentives or programs are needed to encourage skills development in specific job sectors and industries," said Kemnaker.

Until 2023, Indonesian unskilled workers were most employed in the agriculture, forestry, and fisheries sectors; the construction sector; the processing industry; transportation and warehousing; and other services.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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