Unemployment in Southeast Asia: Indonesia’s Rate Projected to Be the Highest by 2025
As global economic instability persists, numerous countries are experiencing widespread repercussions across various sectors, particularly within labor markets. According to data released by the International Monetary Fund (IMF) in 2025, projections indicate a rising trend in unemployment rates across Southeast Asia, expected to continue through 2030.
Within the ASEAN region, Indonesia is projected to record the highest unemployment rate, reaching 5 percent by 2030—an increase from the forecasted 4.9 percent in 2024. While the difference may appear marginal, it nonetheless exacerbates existing concerns regarding the country’s employment conditions.
This projection highlights the persistent structural challenges within Indonesia’s economy that hinder its capacity to effectively integrate its labor force. Syafruddin Karimi, an economist and lecturer at the Department of Economics, Andalas University, stated on May 22, 2025, that key industries such as textiles and footwear are confronting considerable difficulties, driven by waning international demand, volatile raw material prices, and escalating logistical costs.
Karimi emphasizes that in order to address these challenges, Indonesia must undertake a comprehensive overhaul of its industrialization strategy, ensuring that employment opportunities expand in tandem with the development of productive sectors.
According to IMF data spanning from 1980 to 2030, the seven Southeast Asian countries projected to have the highest unemployment rates by 2030 are as follows:
Indonesia – 5.0%
Brunei – 4.9%
Philippines – 4.5%
Malaysia – 3.2%
Vietnam – 1.9%
Singapore – 1.9%
Thailand – 1.0%
