An insight into Youth Unemployment in Indonesia

Abstract

Youth unemployment in Indonesia has continued to remain at a high level relative to other age categories for several years. The case of Indonesia’s youth unemployment is grave with the presence of a low workforce participation rate, informal employment, and higher unemployment rates in young people compared with adults. Due to the lack of research on a country-wise view of youth unemployment, this study focuses on providing a much better understanding of the youth unemployment problem in emerging countries, especially Indonesia. The main aim of the paper is to bridge the research gap on youth unemployment with reference to microeconomic determinants, such as educational background and participation in training. This study utilized the August 2019 data of SAKERNAS (Survei Angkatan Kerja Nasional) and analyzed the data using the logistic regression method. Logistic regression is a special econometric model where the dependent variable is considered categorical and dichotomous (binary); in this case, it was unemployed (1) or working (0). The study found that training participation has a negative correlation with youth unemployment, while educational attainment generates mixed results.

Realizing Justice and Balance in Labor Reform in Indonesia

“…The articles presented in this research reveal various aspects related to labor reform in Indonesia. Topics studied include labor market evaluation (Bradley & Kügler, 2019), primary care doctor satisfaction (Maharani et al, 2019), determinants of worker poverty (Faharuddin & Endrawati, 2022), foreign direct investment (Suryanta & Patunru, 2022), youth unemployment (Yanindah, 2022), and the relationship between employment and married women's labor force participation (Rimkute & Sugiharti, 2022). These findings provide insight into the dynamics and challenges surrounding labor reform in Indonesia.…”

“…The determinants of worker poverty (Faharuddin & Endrawati, 2022) and foreign direct investment (Suryanta & Patunru, 2022) provide important insights into the economic factors that influence the dynamics of employment and investment in Indonesia. Handling youth unemployment (Yanindah, 2022) requires targeted interventions and policies. The relationship between employment and labor force participation of married women (Rimkute & Sugiharti, 2022) highlights the importance of considering gender factors and the role of household technology in designing employment policies.…”

“…Focusing on the determinants of worker poverty (Faharuddin & Endrawati, 2022) and attracting foreign direct investment (Suryanta & Patunru, 2022) is an important step for policymakers. Careful intervention development is needed to overcome youth unemployment (Yanindah, 2022). In addition, there needs to be policies that support gender equality and married women's labor force participation (Rimkute & Sugiharti, 2022).…”

Characteristics Of Youth Unemployment: Before And During The Covid-19 Pandemic In Indonesia

“…The level of productivity of individuals is directly proportional to the length of time they have attended training (Simanjuntak, 1998). In Yanindah's (2021) research, it is revealed that individuals who take part in training have a better chance of getting a job. ILO (2004) states that individuals with no work experience reduce the chances of getting a job in the modern economic sector.…”

Educated Youth as Driving Force of Urbanization: The Role of Higher Education and the Employment Opportunities in Emerging Cities in Indonesia

“…However, finding work in their field of study in emerging cities in Indonesia also presents challenges. Increasingly tight competition in the labor market, especially in sectors relevant to higher education, can make new graduates feel pessimistic about finding suitable employment (Yanindah, 2021). This encourages some educated Indonesian youth to pursue higher education, such as a master's program, in the hope of enhancing their job opportunities.…”