ANALYSIS OF THE IMPACT OF THE UNEMPLOYMENT RATE ON LABOR MARKET DEMAND IN INDONESIA DURING THE 2023–2025 PERIOD
Keywords:
Unemployment, Labor Market, Labor Demand, Big Data, Employment PolicyAbstract
This study aims to analyze the relationship between the unemployment rate and labor market demand in Indonesia during the 2023–2025 period. Unemployment is a structural issue that has a direct impact on economic stability and social welfare. Based on data from Statistics Indonesia (BPS), the labor force increased from 149.38 million people in February 2024 to 153.05 million in February 2025. However, this increase was not accompanied by a decline in the number of unemployed people, which instead rose from 7.20 million to 7.28 million. This study employs a descriptive qualitative approach through a literature review of various scientific sources and official statistics. The findings indicate that the mismatch between workforce skills and industry needs, the dominance of the informal sector, and limited job creation are among the main factors contributing to unemployment. Furthermore, the use of technology, particularly big data, provides strategic opportunities for analyzing employment trends and developing more effective labor market policies. Collaboration among the public sector, private sector, and educational institutions is therefore essential to creating a labor market that is flexible, inclusive, and responsive to global changes.
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