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Youth unemployment needs serious attention
Although the most recent figures say 4
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lthough the most recent figures say 4.8 million 15- to 24-year-old Indonesians are unemployed — down from 5 million in 2008 — Indonesia still ranks high in Southeast Asia for jobless problems.
The number of unemployed young Indonesians exceeds 20 percent and is more than five times the adult rate of unemployment, according to recent reports from the National Labor Force Survey and the International Labor Organization (ILO).
Experts agreed the government must tackle the problem of a staggering number of unemployed young people.
University of Indonesia sociologist Hari Nugroho told The Jakarta Post on Thursday that it was time for the government to stop underplaying the youth employment problem and start taking concrete action.
The social consequences of youth unemployment coupled with soaring poverty rates will lead to higher crime and increased socio-economic burdens on families and society, he said.
“The social and economic costs are high, as subsequently many families will become buffer zones for such youth,” Hari added.
Arindra A. Zainal, a University of Indonesia economist, said the government needed to provide young people with affordable higher education or training, as well as reform the way in which they were deployed in the labor market.
Despite the government claims of robust economic growth, it is important to note that at the macro level growth may not affect industries employing young people, he added.
“Growth is mostly derived from the traditional, commodity-related industries, such as agriculture or mining, which do not absorb a significant number of young laborers,” Arindra said.
Another University of Indonesia economist, Ari Kuncoro, said young people had to be directed to technology-intensive industries and not traditional industries.
Young people may comprise a lost generation, trapped in economic stagnation and in constant fear of unemployment, he added.
However, the ILO said Indonesia is on track — despite problems such as poor education.
ILO Jakarta economist and labor market analyst Kazutoshi Chatani said rising youth unemployment in Indonesia was due to increased school attendance, adding that young people’s average wages had increased, which was a good indicator of national macroeconomic health.
The average salaries for high school and university graduates doubled from Rp 511,000 and Rp 1 million in 2000 to Rp 1.3 million and Rp 2.6 million in 2009, respectively. (tsy)
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CORRECTION
On this page in Friday’s edition in an article titled “Youth
unemployment needs serious attention”, we wrote, “ILO Jakarta economist
and labor market analyst Kazutoshi Chatani said rising youth
unemployment in Indonesia was due to increased school attendance...” It
should have read: “ILO Jakarta economist and labor market analyst
Kazutoshi Chatani pointed out that more young people, especially women,
pursue higher education, which partly explains the recent decline in
youth unemployment.”
— Editor
The Jakarta Post, August 21, 2010, page 2
