BPS: Youth Unemployment Rate Rises During Pandemic

The COVID-19 pandemic has led to a surge in unemployment. According to the Central Bureau of Statistics (BPS), the largest increase in unemployment occurred among young people aged 20-29.

The Open Unemployment Rate (OUR) for the 20-24 age group was 17.66% in February 2021, a 3.36% increase compared to the same period last year (14.3%). This age group experienced the largest increase in OUR compared to other age groups.

The second largest increase in OUR was among the 25-29 age group. In February 2021, the OUR for this age group was 9.27%, a 2.26% increase compared to the same period last year (7.01%).

In terms of education, the highest unemployment rates were experienced by graduates of high schools (SMA), vocational high schools (SMK), and universities. The OUR for high school graduates rose from 6.69% last year to 8.55% this year. Similarly, for vocational high school graduates, it rose from 8.42% to 11.45%, and for university graduates, from 5.7% to 6.97%.

According to the Head of BPS, Margo Yuwono, there are at least two major challenges in employment due to the COVID-19 pandemic. First, many workers have shifted to low-productivity sectors, such as agriculture. Second, many workers have shifted to the informal sector during the pandemic. This increase has caused the proportion of formal workers to decrease from 43.36% to 40.38%.