PHK Increases in January-October 2024

Economics & Macro

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Adi Ahdiat 13/11/2024 10:50 WIB

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According to the Indonesian Manpower Ministry's report, nearly 64,000 employees were laid off in Indonesia between January and October 2024. This figure is higher than the number of layoffs during the

Number of Employees Affected by Layoffs in Indonesia, January-October (2022-2024)*

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Number of Employees Affected by Layoffs in Indonesia, January-October (2022-2024)*

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According to the Ministry of Manpower (Kemnaker), the number of employees laid off in Indonesia from January to October 2024 reached almost 64,000.

This figure is higher than the number of layoffs during the January-October 2023 period, which was around 45,000, and the January-October 2022 period, which was only around 11,000.

However, these figures may not represent the total number of layoffs in Indonesia, as Kemnaker only records layoffs reported through the Manpower Service Information and Application System and/or industrial relations courts.

According to Bob Azam, Head of Manpower at the Indonesian Employers Association (Apindo), this year's layoffs have largely occurred in export-oriented textile and footwear manufacturing companies exporting to Europe.

"Many companies are implementing efficiency measures because they don't see any growth drivers in the near future," said Bob, as reported by *Tempo.co* on Monday (November 4, 2024).

This aligns with the S&P Global report stating that Indonesia's manufacturing sector was sluggish during July-October 2024.

"The sluggish business conditions have led companies to reduce their factory staff by an average of three times in the last four months," said the S&P Global team in a press release on Friday (November 1, 2024).

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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