Trends and Determinants of the Indonesian Labour Force Participation Rate

Raja Masbar; B.S. Nazamuddin

Raja Masbar Universitas Syiah Kuala, Indonesia
B.S. Nazamuddin Universitas Syiah Kuala, Indonesia

Keywords: Indonesia, labour force participation rate, gender disparities, economic growth, workforce engagement

Abstract

This study examines the Labor Force Participation Rate (LFPR) in Indonesia from 2014 to 2024, focusing on the economic and demographic factors influencing workforce engagement. The analysis reveals a significant rebound in LFPR post-COVID-19, with male participation consistently outpacing female participation, highlighting persistent gender disparities. Economic growth correlates positively with LFPR, underscoring the importance of job creation in enhancing labor market engagement. The findings suggest the need for targeted policy interventions to promote gender equity and inclusivity in the labor market. Despite some limitations, including reliance on secondary data and a lack of qualitative insights, the study contributes to understanding Indonesia's labor dynamics and emphasizes the importance of supportive policies for a balanced workforce.

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