TEMPO.CO, Jakarta – Indonesia's employment growth slowed in the second quarter of 2026, according to Bank Indonesia's (BI) latest Business Activity Survey, reflecting weaker labor absorption across several sectors.
The survey recorded a net weighted balance (SBT) of 0.14 percent for employment growth in the second quarter, down from 0.28 percent in the previous quarter.
"Several business sectors recorded increases, particularly the Mining and Quarrying sector (SBT 0.26 percent) and the Construction sector (SBT 0.07 percent), in line with improved business activity," Bank Indonesia said in its report cited on Sunday, July 19.
Other sectors that recorded positive employment trends included Wholesale and Retail Trade, as well as the Repair of Motor Vehicles and Motorcycles sector (SBT 0.27 percent), supported by the expansion of vehicle dealers and showrooms.
The Financial Services sector also recorded growth (SBT 0.29 percent), driven by the addition of branch offices.
Manufacturing Sector Sees Sharpest Decline
The Manufacturing sector recorded the steepest contraction in employment absorption, with an SBT of -0.54 percent.
Meanwhile, the Agriculture, Forestry, and Fisheries sector recorded positive employment growth with an SBT of 0.23 percent.
The Government Administration, Defense, and Mandatory Social Security sector also experienced a contraction, recording an SBT of -0.14 percent.
Employment Outlook Improves in Third Quarter
For the third quarter of 2026, businesses surveyed by BI expect employment conditions to improve, with projected labor absorption reaching an SBT of 0.95 percent.
The expected increase is projected to come from the Agriculture, Forestry, and Fisheries sector (SBT 0.06 percent), supported by the harvest season for horticultural and plantation commodities.
Other sectors expected to contribute to employment growth include Accommodation and Food and Beverage Service Activities (SBT 0.08 percent) and Real Estate (SBT 0.12 percent).
The Manufacturing sector is also expected to recover, although it is projected to remain in contraction territory, with an estimated SBT of -0.14 percent in the third quarter, in line with its business activity outlook.
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