Jakarta. For many Gen Z graduates, landing a first job has become the hardest job of all. Indonesia’s labor market is improving, just not for its youngest entrants. 

The national unemployment rate fell to 4.74% in November 2025, according to the Central Statistics Agency (BPS). Yet for those aged 15–24, the jobless rate remains high at 16.26%, meaning roughly one in six young people is without work. 

For those entering the workforce, the figures reflect a far more personal struggle. Sesilia Ayu, 24, says she has applied for more than 100 positions since leaving university, typically advancing to interviews but rarely further. 

Muhammad Revan, 22, has sent out dozens of applications and received only one or two callbacks. “Experience is always the first obstacle,” he says. Degrees, it seems, no longer guarantee doors will open.

Khansa Aprita, 24, an English literature graduate, finds that limited demand in certain fields compounds the problem. Degrees, it seems, no longer guarantee doors will open.

Pay deepens the frustration. Most offers fall below expectations and often under regional minimum wages. Some graduates accept them anyway, treating low pay as an entry fee into the formal economy. Others drift into gig or informal work, blurring the line between employment and joblessness.

“A minimum-wage offer is good enough for me because the work experience matters more,” Revan said, a view shared by Khansa and Ayu. 

Dudi Arisandi, chairman of the Indonesia Society of Human Resources Management (PMSM), points to slowing investment and corporate cost-cutting. “Many companies are downsizing, delaying expansion or relocating operations abroad, which directly affects entry-level recruitment,” he says.

Automation and generative AI have also taken away junior roles that once served as career ladders, leaving fewer positions that demand more experience or specialized skills.

This creates the paradox: graduates need experience to get a job, but a job to gain experience. Firms prefer experienced hires because they are seen as immediately productive and less risky when margins are tight. Fresh graduates are pushed into internships, freelance projects or volunteering simply to build a credible track record.

Then there is the stigma of Gen Z itself. According to Dudi, employers often complain of weak communication, low resilience and unrealistic expectations around pay, flexibility and work–life balance. Universities, in turn, are criticized for curricula that remain too theoretical and poorly aligned with workplace needs.

The government hopes internships can bridge the gap. The national internship programme launched in late 2025 targets 120,000 placements, offering stipends and social-security coverage. But demand has far outstripped supply.

“Without clear pathways into permanent jobs, the scheme risks becoming a stopgap rather than a solution,” Dudi concluded.