Thekabarnews.com—Serious pressure continues to weigh on Indonesia’s labor market. The Manpower Ministry (Kemnaker) reports that layoffs have affected as many as 43 thousand workers in the first half of 2026.

Manufacturing is still one of the largest drivers of the increase. This reflects the pressures on businesses in a changing economic environment and transformation of industry.

Anwar Sanusi, head of the Ministry’s Employment Planning and Development Agency (Barenbang), spoke to reporters at the Manpower Ministry’s headquarters in South Jakarta on Monday, June 29. He said that the number of layoffs had reached about 43,000 by the end of June.

“As far as I know it was around 43,000 by June,” Anwar told reporters after an event at the ministry.

But behind the numbers are thousands of workers and families adjusting to an unexpected change in their livelihoods.

For many employees, losing a job means more than losing a monthly income. It is often hard on household finances, children’s education, health care costs, and long-term financial security.

The government admits it is facing these challenges and says it has prepared several mitigation measures to slow the increase in layoffs. Furthermore, officials want to provide greater protection for workers who have already lost their jobs.

Strengthening the Job Loss Insurance (JKP) program is one of the government’s top priorities.

“Improving the quality and access to the program has become a central element of the ministry’s response to the growing number of displaced workers,” Anwar said.

The first mitigation measure is dedicated to the Job Loss Insurance program. “JKP is crucial for workers who lose their jobs, so we keep improving its services,” he said.

The JKP program provides temporary cash benefits, access to labor market information, job placement assistance, and vocational training to eligible workers. These measures help them return to work more quickly.

Government officials believe that improving these services will reduce the social and economic impacts of layoffs. Moreover, officials believe the initiative will improve workers’ chances of finding new jobs.

Recently, the manufacturing sector has encountered several challenges, including changing international demand, technological evolution, rising production costs, and intensifying competition.

These have pushed certain companies to restructure their operations or to revise their workforce needs. Layoffs are often a reflection of structural changes in an economy, not just conditions in one industry.

They stress the need for workforce reskilling, vocational education and more cooperation between government, employers and educational institutions. In addition, these steps will ready workers for shifting needs in the labor market.

The Manpower Ministry reiterated its commitment to enhancing employment protection. At the same time, it is monitoring the developments in sectors that remain vulnerable to job cuts.

Officials also continue to urge companies to speak with their employees and consider other options before large-scale layoffs whenever possible.

The latest numbers highlight the ongoing pressure in the labor market. However, the government hopes that improved social protection programs such as JKP will help workers to weather spells of unemployment in greater financial security and with better access to new career opportunities.

As Indonesia’s economy continues to evolve, policymakers face a two-fold challenge. They must find out how to support business competitiveness while ensuring that workers displaced by industrial change are adequately protected and offered meaningful opportunities to re-enter the workforce.