DPR Highlights The Phenomenon Of Badminton Of Layoffs And Difficulty Gen Z Can Work

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JAKARTA - Recently, it was widely discussed both on social media and the mass media, the number of unemployed in Indonesia has increased rapidly, especially for Gen Z. Commission XI of the DPR RI encourages the government to pay more attention, especially since the storm of layoffs that are mushrooming can have a negative impact on the country's economy.

"The polemic is that Gen Z is looking for a job, it must be discussed more comprehensively. What is the real problem and how to overcome it, so that it can immediately find a solution for this young generation," said Commission IX member Charles Meikyansah, Thursday, August 8.

Although based on the report of the Ministry of Finance, Indonesia's economic condition grew well in the first quarter of the 2024 Fiscal Year, which was 5.1%, the unemployment rate in Indonesia was also still high.

"The government always claims that the Indonesian economy is strengthening and fine. But in fact there is still a lot of unemployment in Indonesia and it must be overcome so that it does not affect our economic growth," he said.

The International Monetary Fund (IMF) noted that the unemployment rate in Indonesia is at a vulnerable level with an unemployment rate in Indonesia reaching 5.2%. When compared to other ASEAN countries, this figure occupies the first position.

Furthermore, Charles highlighted the issue of Gen Z which is difficult to find work. This makes it sad considering that Gen Z should be currently at a productive age.

"It's crowded on social media, Gen Z is difficult to get a job because policies and conditions for getting a job are too difficult. The government must pay more attention and immediately reach a solution," said Charles.

According to data from the National Labor Force Survey (Sakernas) as of February 2024, there are 3.6 million Gen Z aged 15-24 who are unemployed this year. Meanwhile, the total open unemployment in Indonesia is at 7.2 million. That means, Gen Z accounts for 50.29 percent of the total open unemployment in Indonesia.

If coupled with those classified as non-workforce but not in school or training (Not in Employment, Education or Training/NEET), the number of unemployed reaches 9.9 million.

Commission XI of the House of Representatives in charge of financial affairs pays serious attention to the increasing high unemployment rate for Gen Z. According to Charles, although work culture issues to Gen Z's behavior are considered to be able to change the work system in the company, it should not necessarily make them 'dispelled' from the world of work competition.

"Gen Z has an advantage in the creative industry, which is very important and needed in the current digital era, they should be able to be empowered properly and given non-formal education about work culture," explained the legislator from the East Java IV electoral district.

Indeed, recently many companies have complained about Gen Z's unusual work ethics and often make the company lose money. In the world of work, Gen Z is known to have its own uniqueness because the majority choose jobs that can meet their needs such as work life balance, work remotely, and are very concerned about salary components.

"Actually, it's good, those demands, but many companies still have a kama culture where they demand militant employees to work. There must be a fair formulation so that there is a win-win solution for all," Charles explained.

On the other hand, Charles also highlighted the many phenomenons of layoffs (PHK) in Indonesia. One of the causes of the storm of layoffs occurred because many companies were being destroyed or bankrupt. As a result, many employees have to be laid off.

It's just that the problem is that sometimes the company does not fulfill the rights and obligations of employees who receive layoffs. Charles assessed that this layoff storm also has the potential to affect Indonesia's economic growth.

"Under any circumstances, the company must ensure that it gives the rights of employees affected by layoffs. Such as severance pay, to salaries and other incentives that have not been paid," he said.

In the Ministry of Finance's report, the Government claims that the quality of economic growth has increased significantly as reflected in the creation of jobs that are high enough to reduce the Unemployment Rate.

However, data from the Ministry of Manpower noted that layoffs had hit 32,064 workers during the first six months in 2024. The majority occurred in Jakarta, which was 23.29 percent.

"Data and facts are inversely proportional to this. The storm of layoffs is clearly happening in front of our eyes, and the government must not remain silent," said Charles.

Several companies that have laid off include PT Era Media Informasi (Gatra Media Group) which stated bankruptcy so that the media Gatra had to stop operating and lay off its employees.

However, the company reportedly has not paid salaries as of May, June, July 2024, until the BPJS Employment of employees is also in arrears for almost 26 months. In addition, there is no clarity about the nominal number of pairs, and the contract employee has not yet been registered with BPJS Ketenagakerjaan.

The Central Statistics Agency (BPS) also noted that the growth rate of the textile and clothing industry for gross domestic product (GDP) has slowed down in the second quarter of 2024. The impact is that many industries are currently plagued by the issue of layoffs and factory closures.

"Facing things like this, the government must be present to ensure employees who are laid off can get their rights. Provide assistance and become mediators between employees and the company," said Charles.

"We also encourage the Government to provide support for workers who have been laid off, including information about available assistance and training programs. So that people feel more that the state is here to provide solutions," he added.

According to Charles, improvements in the issue of unemployment and the storm of layoffs should be of more concern to policy makers. Because the impact will affect the economy as a whole.

The phenomenon of layoffs that has occurred in recent times has certainly increased the level of unemployment in Indonesia. Purchasing power is getting weaker, the wheels of the economy are stagnant, and so on. In the end, it affects economic growth," said Charles.

"This condition will certainly also affect the state's financial burden. So there must be continuity to overcome the storm of layoffs and efforts to reduce the unemployment rate in the country," he concluded.