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The Majority of Indonesia's Desperate Unemployed Come from Urban Areas

Adi Ahdiat 30/04/2026 18:01 WIB

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According to research by LPEM FEB UI, the number of desperate unemployed people in Indonesia is higher in urban areas than in rural areas.

The Proportion of Desperate Unemployment in Indonesia Based on Residence Location (February 2025)

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The Majority of Indonesia's Desperate Unemployed Come from Urban Areas

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The Proportion of Desperate Unemployment in Indonesia Based on Residence Location (February 2025)

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"Desperate unemployed" are people who are not working and not looking for work because they feel it's impossible to get a job.

According to research by LPEM FEB UI, in February 2025, there were about 1.87 million desperate unemployed people in Indonesia. Of these, 60% live in urban areas and 40% in rural areas.

LPEM FEB UI assesses that the phenomenon of desperate unemployment in urban areas is often related to competition pressure and skills mismatch.

"The evolving economic structure towards modern services and technology-based industries demands more specialized skills. Many job seekers, especially those with secondary education or experience in traditional sectors, feel unable to compete," said LPEM FEB UI researchers in the report "Reading the Signs of Desperation in the Indonesian Labor Market" (November 2025).

"The World Bank observed that major cities in developing countries often face a situation where job opportunities are indeed increasing, but access to these opportunities is increasingly filtered by skill levels," they continued.

On the other hand, rural unemployment is more influenced by structural factors.

"Provinces with an agricultural economic structure or dependence on the primary sector face limited formal job opportunities. Job mobility is often hindered by minimal economic diversification, low agricultural productivity, and limited access to training and job market information," they said.

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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The Majority of Indonesia's Desperate Unemployed Come from Urban Areas

The Majority of Indonesia's Desperate Unemployed Come from Urban Areas

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The Majority of Indonesia's Desperate Unemployed Come from Urban Areas

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