High Unemployment Rate among the Generation Z
The unemployment rate among Generation Z tends to be high. They are considered less resilient, but possess great potential.
Ghoida Rahmah
December 23, 2024
AFTER experiencing a setback due to being laid off from an e-commerce company, Lingga Wastu chose to get back on his feet. While looking for a new job, he founded the Move On Game On (MOGO) Community. Through this community, Lingga seeks friends who had similar experiences, especially during a time when layoffs affected technology startups and many other industries in recent times. This was particularly true for those referred to as Generation Z or Gen Z.
In less than three months since its establishment, MOGO Community has already gathered over 700 members from various ages and backgrounds. The largest group consists of Gen Z workers, young people aged 19 to 27, making up about 30 percent of the members. “Most of them are former marketing staff or have worked in the creative industry and e-commerce,” said the 38-year-old to Tempo on Wednesday, December 18, 2024.
Although Lingga is not part of Gen Z, he is concerned about his younger peers. He said that Gen Z, the youngest group in today’s workforce, tends to have a different perspective from the older generations, such as Baby Boomers, Generation X, and Millennials (Generation Y). “Most Gen Z individuals are more relaxed, spending their waiting time by building networking as much as possible and improving their skills,” he explained.
Lingga Wastu, Founder of the Move On Game On (MOGO) Community, speaks during the first meeting of the MOGO Community at the AIA Indonesia Office, Jakarta, September 19, 2024. MOGO Doc.
The MOGO Community, established in October 2024, serves as a platform for sharing stories, networking, and collaborating among young workers to create new opportunities. Its first program, Move In, is a counseling forum for those in need of a support system after losing their jobs or being unemployed. The second program, Move On, provides coaching, mentoring, and career development consultations. The third program, Game On, focuses on collaboration opportunities, opening businesses, and serving as a bridge between members to help them earn income.
Deputy Chair of MOGO Community Andre Satria Octavino said that mentors facilitate the execution of these programs. The mentors are fellow community members who are professionals in their respective fields. Anyone can join as a member and access MOGO’s programs for free. “Programs available include job interview training, communication training, career development consultations, and even English language training,” said Andre.
Vice Chairman of MOGO Community Andre Satria Octavino. MOGO Doc.
Specifically for Gen Z members, who tend to have a broad perspective on work, MOGO offers additional programs such as business training and digital content creation. The goal, Andre explained, is to prevent Gen Z from solely pursuing office jobs. He also noted that Gen Z is more open to choosing various fields of work and industries, but they see salary value as a key consideration. “Unlike Millennials, who typically seek stability in their work and careers.”
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RENE Oktavia is willing to remain unemployed for over a year after graduating from a prestigious public university in West Java. Until now, the 24-year-old feels she has not found a job that meets her expectations. Salary and work system are the primary considerations when Rene is offered a position. These factors are what have caused her prolonged unemployment. “Usually, when it reaches the salary offer stage, the offer doesn’t reflect appreciation for my skill and knowledge, even though the workload is heavy,” said the holder of a biology degree.
Rene also does not want to settle for a job outside her field of study. This is why she is reluctant to apply for jobs such as administrative positions, marketing, or banking. “They are open to all majors, but I don’t want that. What’s the point of studying biology if I end up working such jobs?” she said.
Adrian Putra, 25 years old, has a different story. The food technology graduate from a state university in North Sumatra had worked at a packaged food and beverage company. After two years there, Adrian resigned because his employment status was limited to a contract worker. “There was no certainty when I would be promoted to a permanent employee,” he said.
Adrian aims for a permanent job position to obtain benefits such as health insurance, bonuses, and additional allowances. The reason is that he is part of Generation Z and belongs to the ‘sandwich generation’. This means he is in a squeezed position because he must support both the older and younger generations, such as his parents and younger siblings, hence the ‘sandwich’ term. “I have three younger siblings,” he said.
Gen Z job seekers at the Naker Fest 2024 job fair held by the Ministry of Manpower (Kemnaker) at JIEXPO Kemayoran, Jakarta, Friday, August 23, 2024. TEMPO/Tony Hartawan
While looking for a job, Adrian helps his mother sell clothing on an online marketplace. “I help sell her merchandise through live shopping on TikTok to boost sales,” he said.
Rene and Adrian are typical examples of Generation Z in Indonesia. According to research from the Pew Research Center, Gen Z now represents 22 percent of the population in Indonesia, about 56 million people. They are beginning to enter the workforce and face various social and economic challenges.
However, there is an elegy behind the high number of Gen Z. Data from the Central Statistics Agency (BPS) states that in 2023, 9.9 million young people aged 15 to 24 were neither employed nor in school or training. Of this number, 5.73 million were young women and 4.17 million were young men who were unemployed.
Tempo Constructive Journalism team, in collaboration with International Media Support, conducted a survey to capture the condition of Gen Z in the workforce. The survey, conducted between November 1-7, 2024, with 57 respondents, found that 72 percent of them preferred flexible job models. Some members of Gen Z choose jobs based on their expertise.
As many as 22.5 percent of respondents stated they were still unemployed for various reasons. The most common reason was the fierce competition for the types of jobs they targeted. Other reasons included a lack of adequate skills, limited job opportunities, and not receiving salary offers that met their expectations.
The high unemployment rate among Gen Z has also caught the attention of the government. The Manpower Ministry has conducted various counseling programs and guidance initiatives in schools, universities, and vocational training centers. Siti Kustiati, Director of Domestic Workforce Placement at the Manpower Ministry, stated that these programs prioritize Gen Z to ensure they understand the professional world and how to get the job they desire.
On the other hand, Siti added, the ministry often receives complaints from companies about Gen Z employees, whom they perceive as lacking resilience under work pressure. According to Siti, many company managers believe that Gen Z employees get bored quickly and are not as effective in teamwork. This condition could contribute to a higher open unemployment rate. “Therefore, we are working to create programs that help Gen Z avoid these shortcomings as reported by employers,” she said.
Perceptions of Gen Z vary. According to Faisal Makruf, Chair of the Serikat Merdeka Sejahtera (Semesta)—a trade union representing many Gen Z employees—one of the stigmas attached to them is the label ‘strawberry generation.’ They are considered as soft, like strawberries. This label applies to Gen Z members who often complain on social media about their challenges in the workforce. “But complaining doesn’t mean they are soft,” he said. Faisal also disagrees with the idea that Gen Z is ‘picky’ about jobs and considers salary as their main concern. “I think every generation wants a high salary.”
It is undeniable that Gen Z faces many challenges in finding a job. One common complaint voiced by members of Semesta, as Faisal explained, is the difficulty of finding job vacancies that match their field of study or skills. “There are many applicants, but few job opportunities. Moreover, competition in areas outside of Jakarta is fierce and there are not many companies there,” he said.
Not all perceptions of Gen Z are negative. They also have advantages in the eyes of employers. Nila Marita, Director of Corporate Affairs at GoTo Gojek Tokopedia, said the positive traits include their quick adaptability, unlimited curiosity, high social awareness, and focus on work-life balance. “But what is often heard are negative stereotypes, such as Gen Z preferring instant results, being difficult to follow instructions, too idealistic, or being more susceptible to stress,” she said.
According to GoTo’s 2023 sustainability report, nearly half of the company’s workforce is made up of Gen Z employees across various divisions. Nila stated that GoTo strives to optimize the potential of Gen Z employees to deliver maximum results. This effort includes providing clear career development paths, supporting them in building professional connections, increasing transparency of various information, offering autonomy, and prioritizing welfare and mental health.
These efforts are implemented through various programs, such as training, providing a positive work environment, offering 24-hour counseling services, flexible working hours, and enjoyable activities for employees. According to Nila, each generation has different work cultures and approaches because they face different challenges. “By understanding these characteristics, companies can maximize potential and collaboration,” she said.
Andi Taufan Garuda, the founder of the financial technology (fintech) company Amartha, said Gen Z workers can address future business challenges. Therefore, he added, 75 percent of Amartha’s 1,000 employees are from Gen Z. They come from diverse educational backgrounds, from high school to university graduates. They also hold various positions, such as team leaders, data division staff, technology employees, and marketers.
Andi added that Amartha provides special treatment for its Gen Z employees. In addition to supporting capacity and skill development, Amartha appreciates them by providing a favorable work environment and clear career paths. “I must admit, they are quicker to learn new things, such as artificial intelligence technology and problem-solving skills,” he said.