Choosy youth or unwanted youth? A survey of unemployment

This paper examines structure and change in unemployment in Indonesia from the 1970s through to 1996. The analysis focuses on high unemployment rates among urban youth, set in the context of similar problems experienced in other developing countries. It also deals with some of the conceptual and measurement issues. It is concluded that high youth unemployment is partly a queuing phenomenon among middle class families, related to processes of job search and wage structure. But rates of under-utilisation are also high among children of poorer households in the working age population. Over time, the paper finds considerable stability in the structure of unemployment, with some tendency for overall rates to increase. Some rises in unemployment were experienced by youth with either low educational status or tertiary qualifications, and by women. Explanations include increased minimum wages and a slowdown in manufacturing activity, although changing definitions have also played a part.