Various Challenges in Reducing Unemployment Rate

TEMPO.CO, Jakarta - Manpower Minister Ida Fauziyah on Tuesday revealed a number of challenges in reducing Indonesia’s unemployment rate. One of the challenges lies in what is classified as unemployed people that are ‘hopeless of landing a job.’

“Out of a total of 8.4 million unemployed people, there is 2.8 million or 33.45 percent who feel hopeless in landing a job,” the Minister said on the Ministry’s official website on January 17. 

76.90 percent of the 2.8 million people, the Minister elaborated, come from lower educational backgrounds. This statistic, she said, indicates that this demography faces a hurdle in the form of education and competence upon entering the job market. 

The second challenge is the pressure to expand job opportunities, especially in the formal sector. Meanwhile, the third one is the new work culture and values. 

“The Y and Z generations that have entered the job market have brought a new culture with them, such as the work and life balance, meaningful jobs, and worktainment,” said the Minister.

Other challenges she elaborated on include supply and demand mismatches. Minister Ida said digitization has pushed for changes in the demands from corporations to their employees, such as work skills, patterns of work relationships, and increasingly flexible working times and places.

She implied that creating an inclusive workforce would be key to solving the aforementioned issues. 

RIRI RAHAYU

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