Manpower Minister Unveils Reasons Behind Over 24,000 Layoffs by April 2025

TEMPO.CO, Jakarta - Manpower Minister Yassierli has reported that the number of workers affected by layoffs from January up to Wednesday, April 23, 2025, has reached 24,036 individuals. He mentioned that, based on an analysis of 25 reported reasons, there are seven main causes for these layoffs.

"Of the 25 reasons cited for layoffs, these seven appear to be the most prevalent. Firstly, companies experiencing losses or closures due to declining domestic and international markets," Yassierli said during a working meeting with House of Representatives Commission IX in Senayan, Jakarta, on Monday, May 5, 2025.

Secondly, he continued, companies relocated operations to areas with lower minimum wage requirements. Thirdly, he noted the occurrence of cases stemming from labor disputes.

"However, these instances are typically not widespread, usually affecting a single company. Then (fourth), retaliatory actions by employers resulting from work stoppages. This also falls under labor relations," Yassierli explained.

Furthermore, the fifth cause of layoffs is the implementation of efficiency measures by companies aiming to prevent losses and ensure their sustainability. Sixth, he added, some companies adopted policies to implement transformations, such as transitioning to different business sectors.

"The last primary cause is bankruptcy, often due to obligations to creditors and similar factors. So, the reasons for layoffs are diverse, and addressing mitigation strategies requires a case-by-case approach," emphasized the Professor from the Bandung Institute of Technology (ITB).

In addition to presenting data on the number of workers laid off by April 23, 2025, Yassierli also disclosed the provinces with the highest layoff figures: Central Java with 10,692 individuals, Jakarta with 4,649, and Riau with 3,546. The manufacturing industry accounted for the largest number of terminations with 16,801 workers, followed by wholesale and retail trade with 3,622, and other service activities with 2,012.

He further detailed the national layoff trends from 2016 to 2024. From 2016 to 2019, the number of layoffs showed a consistent annual decrease: 33,609 in 2016, 32,246 in 2017, 27,687 in 2018, and 18,911 in 2019.

However, the Covid-19 pandemic led to a dramatic surge in layoffs, reaching 386,877 in 2020, before declining to 127,085 in 2021 and 25,114 in 2022. In 2023, layoffs again sharply increased to 64,855, followed by 77,565 in 2024.

"Currently (as of April 23, 2025), approximately 24,000 layoffs have been recorded. This is about one-third of the total for 2024. Compared to last year, layoff figures have indeed increased," Minister Yassierli concluded.

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