ACADEMICS.web.id – Agus Susanto, 22, spends his days under the scorching sun in Cileungsi, West Java, Indonesia, laboring with a trowel to spread wet plaster and transform rough concrete into smooth walls. At night, he sleeps on the construction site in a temporary shelter, his skin coated with cement dust. Despite the harsh conditions, Aris prefers construction work over office jobs.
“Factories and offices pay only about 2.5 million rupiah (US$150) per month,” said Aris, who completed junior high school. “In construction, I can earn 3 million rupiah in two weeks if I take on as much overtime as possible.”
Nearly 60% of Indonesia’s workforce is employed in the informal sector, which many unemployed youths turn to for short-term jobs. However, this often means sacrificing social protections and employee benefits. In 2023, almost 10 million Indonesians aged 15 to 24 were not engaged in employment, education, or training. This age group now makes up 55% of the country’s unemployed, up from 45% in 2020.
“Unfortunately, most people don’t have the luxury of waiting for high-skilled, high-paying jobs,” said Sudirman Anwar, a senior research fellow at the Swara Akademika Indonesia Foundation (SWAMIF). “With weak social protection systems and the need to cover basic expenses, they have to take whatever work is available.”
Many young Indonesians are also underemployed, working below their skill level or fewer hours than they desire. This trend concerns experts. According to SWAMIF’s research, nearly half of those who start in low-tier informal jobs remain in such roles for the next eight to 19 years.
Indonesia is not alone in facing this crisis. Youth unemployment and underemployment are at alarming levels in some of Asia’s most populous nations. In China and India, millions of young people are struggling due to intense competition for limited jobs and the difficulty of finding work that matches their educational qualifications. In China, monthly youth unemployment data was even temporarily suspended after hitting a record high of 21.3% in June 2023.
Experts warn that if these countries fail to fully utilize their young workforce, it could hinder the region’s economic growth over the coming decades. “When people work below their capacity, productivity falls short of its potential,” said Sudirman. “As a result, the country’s economic growth will also be lower than it could be.”@
