Provinces with the Highest & Lowest Open Unemployment Rates in Indonesia

Open unemployment refers to the percentage of the labor force that is actively seeking employment but is currently without work. This measure is crucial for understanding the economic health of different regions and identifying areas where job creation efforts may be needed.

According to the data, Banten is the province with the highest unemployment rate at 7.02%, followed closely by Kepulauan Riau and West Java, with rates of 6.94% and 6.91%, respectively. DKI Jakarta and Southwest Papua also feature among the top five regions with the highest unemployment rates, at 6.03% and 6.02%. These figures indicate significant labor market challenges in these areas, potentially due to economic factors, industrial shifts, or population growth outpacing job creation.

On the other end of the spectrum, Papua Pegunungan boasts the lowest unemployment rate at just 1.18%, followed by Central Papua at 2.49%, and West Sulawesi at 3.02%. Gorontalo and Central Sulawesi also report low unemployment rates of 3.05% and 3.15%. At a glance, these lower rates suggest better job market conditions in provinces outside of Java, possibly due to effective local policies or a more stable economic environment. However, it may also be influenced by a denser population in Java due to high urban migration rates.

Overall, the gap between the highest and lowest province, and the national average unemployment rate which stands at 4.82%, highlights the disparity between regions. Provinces with higher unemployment rates may need targeted interventions to stimulate job growth and economic development. Meanwhile, provinces with lower rates could serve as models for successful employment strategies. Addressing these disparities is essential for balanced regional development and ensuring equitable economic opportunities across Indonesia.