Discouraged Workers in Indonesia Reach 2.7 Million

Significant Increase from 2019 Levels

The National Research and Innovation Agency (BRIN) has reported a significant surge in the number of Indonesians classified as discouraged workers. The figure has risen to 2.7 million in 2024, a substantial increase from 883,000 in 2019. This represents a more than threefold increase over five years, indicating growing challenges in the labor market.

Educational Background of Discouraged Workers

The data reveals that the majority of discouraged workers have a low level of education. Elementary school graduates constitute the largest group, making up 37.97% of the total. This is followed by high school graduates at 24.86%, and junior high school graduates at 20.72%. The high proportion of individuals with lower educational attainment among discouraged workers underscores the difficulties faced by those with limited skills in securing employment.

Implications for the Labor Market

The rise in discouraged workers suggests that many individuals are struggling to find jobs that match their skills and qualifications. Zamroni Salim, Head of the Center for Macroeconomic and Financial Research at BRIN, noted that the increase in discouraged workers spans various educational backgrounds, including those with diplomas and degrees. This trend indicates broader labor market issues that extend beyond education levels.

Economic Context and Future Outlook

The significant increase in discouraged workers highlights the need for targeted labor market interventions. Addressing the root causes of this trend, such as skill mismatches and limited job opportunities, will be crucial for improving employment outcomes. As the economy continues to evolve, understanding the dynamics of discouraged workers will be essential for policymakers aiming to enhance labor market participation and reduce unemployment.