Formal Sector Absorption, Jakarta Unemployment Rate Plummets in August 2021

The Jakarta Open Unemployment Rate (OUR) has sharply decreased by 8.5% in the last year. The formal sector was the main driver of job absorption in Jakarta in August 2021.

Based on data from the Central Statistics Agency (BPS), Jakarta's OUR fell by 245 basis points (bps) to 8.5% in August 2021, compared to 10.95% in August 2020.

The number of people in the workforce decreased by 54,720 to 5.18 million in August 2021. Meanwhile, the number of unemployed Jakartans decreased even more significantly, by 132,880 to 439,900. This situation resulted in the capital city experiencing the sharpest drop in OUR compared to other provinces.

The number of workers in the formal sector, which had previously decreased due to the impact of the Covid-19 pandemic, began to show an increase. This is evident in the increase of 46,280 formal sector workers (1.61%), reaching 2.92 million in August 2021 from August 2020. Meanwhile, informal sector workers only increased by 31,880 (1.79%) to 1.81 million.

The largest increase in the number of workers in the capital city was in the corporate services sector, with an increase of 39,070, followed by the manufacturing sector with 30,210. Meanwhile, the real estate sector experienced the largest decrease in workers, with a reduction of 36,180.