TEMPO.CO, Jakarta - Minister Manpower Ida Fauziyah outlined several factors behind Gen Z’s high unemployment rate in Indonesia. Statistics Indonesia (BPS) reported that about 9.9 million people aged 15-24 years in the country were unemployed in 2023.

According to the BPS, Indonesia has a total of 44.47 million people in the 15-24 year age group in 2023. Most of the unemployed youngsters or those who are not involved in productive activities are part of Generation Z, born between 1997 and 2012.

Ida disclosed that one of the causes is the mismatch between the skills that graduates possess and the labor market's industrial needs. Besides, many Gen Zers are still seeking job opportunities.

“There is a mismatch, so the output of vocational education does not match the needs of the labor market,” Ida said in a joint meeting with Commission IX of the House of Representatives (DPR) at the Parliament Complex in Jakarta on Monday, May 20.

Ida highlighted that the largest contributor to the unemployment rate among Gen Z comes from vocational school graduates, at about 8.9 percent. To overcome this problem, Ida stated that the government had issued Presidential Regulation No. 68 of 2022 on the revitalization of vocational education and training.

Ida said that the regulation mandates education and training that adapts to the business and industrial sector needs. It also encourages collaboration between relevant stakeholders, such as the Ministry of Education, Culture, Research, and Technology (Kemendikbudristek), the Ministry of Manpower, and the Indonesian Chamber of Commerce and Industry (KADIN Indonesia) in a bid to produce a competent workforce in the ever-changing needs of the labor market.

RIZKI DEWI AYU | ANTARA

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