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View all search resultsWe can’t afford a lost generation
Youth unemployment has remained stubbornly high despite the oft touted demographic bonus, but the government needs to step up targeted solutions or risk losing an entire generation.
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Visitors seek information about job opening in the JobFest 2025 at the Jakarta International Velodrome in Jakarta on Aug. 19, 2025. (Antara/Muhammad Rizky Febriansyah)
Y
outh unemployment has long been a national problem, but one that has been kept somewhat hidden behind official labor market statistics that seem OK. Earlier this week however, two almost simultaneous publications, one from the World Bank and the other from Morgan Stanley, have touched the sore spot.
And that is a good thing, because we have no time to waste. Our much-touted demographic dividend will turn into a liability if we cannot take advantage of the growing working age population.
In short, Indonesia cannot afford a lost generation.
While damaging to the economy, youth unemployment is devastating to those directly affected, whose vision of a bright future gives way to the mission of making it through the month.
Youth unemployment is higher in Southeast Asia than in much of the world, but even so, Indonesia stands out as one of the region’s worst performers.
According to data compiled by Morgan Stanley Research, the unemployment rate among Indonesian youths aged 15 to 24 is 17.3 percent, marginally better than India’s 17.6 percent but far worse than neighboring Malaysia’s 9.9 percent.
The government’s general unemployment rate of below 5 percent will not help the one in six youths unable to find a job.
