August 2017: Only 42% of Workers Employed in the Formal Sector

The number of the labor force in August 2017 increased by 2.62 million to 128.06 million compared to August 2016, which stood at 125.44 million. Meanwhile, available jobs only increased by 2.61 million to 121.02 million. This means that in August 2017, there were 7 million unemployed people, resulting in an increase in unemployment to 7.04 million compared to 7.03 million a year earlier.

Based on employment status, 52 million people (42.97 percent) of the working population were employed in the formal sector in August 2017. This number increased by 1.79 million compared to August 2016. Meanwhile, the number of people working in the informal sector in August 2017 reached 69.02 million (57.03 percent), an increase of 820,000 compared to August 2016. Formal employment refers to self-employment assisted by permanent and temporary workers/employees.

Based on the highest level of education completed, the largest group of Indonesian workers are primary school graduates (SD) or below, reaching 42.13 percent of the total 121.02 million working population. Meanwhile, based on the main field of employment, the majority of workers are currently employed in the agricultural sector, accounting for 29.69 percent.