Statistical Data Story for Indonesia – Education–Employment Mismatch Among Indonesian Youth: Implications for the Demographic Bonus

Cerita Data Statistik Untuk Indonesia (Statistical Data Stories for Indonesia) is a booklet containing articles known as CERDAS, which utilizes innovative data sources and official statistics to provide ideas related to socio-economic issues. In this edition, the Directorate of Statistical Analysis and Development presents an article on youth employment issues amid Indonesia’s demographic bonus. The youth unemployment rate is twice as high as the national average, driven by vertical mismatch, where more than one-third of young workers are employed in positions that do not match their education level. This overeducation and undereducation phenomenon leads to wage penalties and economic inefficiency. Young women, those with higher education, and those living in Java or urban areas tend to experience longer job searches, while the overeducated find jobs faster due to the flexibility of the informal sector. To reduce mismatch risks, improving digital skills, expanding certification programs, and providing industry-relevant training are essential. We hope that this booklet can capture the essence of each statistical value, and make these stories inspire us to create better changes for the future of Indonesia, especially in achieving the Sustainable Development Goals.