JAKARTA/DELHI/BEIJING: Youth unemployment has reached alarming levels across Asia, with millions of young people facing limited prospects for stable, high-paying jobs. A recent article published by Channel News Asia (CNA) reflected how the struggles of young people trying to enter the workforce have affected their futures and hindered their nations’ broader economic growth.
The reality of construction work in Indonesia
In the sweltering heat of Yogyakarta, 24-year-old Tarismaul “Aris” Pinki endures the tough physical labour of construction work. While his job involves long hours under harsh conditions—scooping wet plaster and smoothing concrete—Aris prefers this over office work. “I can earn 3 million rupiah in two weeks if I work maximum overtime,” he says, noting that office jobs offer far less income—around 2.5 million rupiah per month.
However, his choice is not a result of passion but necessity. Like many young Indonesians, Aris is part of the informal labour sector, where 60% of the workforce is engaged. This sector provides limited job security and social benefits, yet it remains the only viable option for many, especially given the rising youth unemployment in Indonesia.
The underemployment epidemic
While Aris’s situation reflects a preference for immediate income over long-term stability, it’s a reality shared by millions of young people in Asia. In Indonesia, nearly 10 million youths aged 15 to 24 were out of employment, education, or training in 2023, making up over half of the country’s unemployed population. Many others are underemployed—working jobs that don’t match their skills or desired hours. Experts like Asep Suryahadi of the SMERU Research Institute warn that this trend will have long-term consequences for individuals and economies. “Because people work below their capacity, productivity is lower than the potential,” he explains, resulting in stunted economic growth.
A regional crisis — India and China struggle with youth unemployment
The youth unemployment crisis is not isolated to Indonesia. India, the world’s largest youth population, is also grappling with a staggering 45.4% youth unemployment rate, as reported by the Centre for Monitoring Indian Economy in 2023. The competition for jobs is fierce, with many graduates struggling to secure positions that align with their qualifications. With India’s job market transforming rapidly, a significant skills gap remains, and industries like renewable energy and fintech are looking for expertise that many graduates do not possess. Similarly, in China, 24% of graduates are overqualified for their jobs, and many end up in positions unrelated to their fields of study, exacerbating frustration among the young workforce.
Potential solutions — entrepreneurship, government support, and rural innovation
In response to these challenges, regional governments are stepping up efforts to support young people. India’s National Apprenticeship Promotion Scheme offers subsidies to companies that train young apprentices, while China provides tax breaks to firms hiring interns. However, for many youths, the solution may lie in entrepreneurship. In India, for example, nearly a third of university students are already engaged in starting their businesses. Programs like Udhyam Learning Foundation empower young people to launch their ventures and create jobs for others. Likewise, in rural China, government policies encourage youth to return to their hometowns, where they can start businesses and revitalize local economies.
The path forward remains challenging as these nations strive to address youth unemployment and underemployment. Whether through increased government support, youth-led startups, or rural revitalization, the region’s future depends on harnessing the potential of its young people. Young workers like Aris continue to make the most of what’s available. Still, the need for systemic change is urgent if the economic aspirations of nations like Indonesia, India, and China are to be realized.