#28: Freelancing Out of Unemployment?
How are Indonesian youths navigating their way through unemployment?
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💼 Redefining Work
Redefining Work examines how Southeast Asian youths are rethinking their approach to work and what it means to be a successful professional.Is Freelancing The Way to Get Indonesian Youths Out of Unemployment?
Are you a fresh graduate who’s struggling to secure employment?
You’re not alone.
Back in 2023, an Indonesian friend of mine shared that out of 15 classmates he graduated with in 2022, less than three had secured a job.
While I was shocked by what I heard, I’d soon learn that the unemployment problem is real across Southeast Asia.
In 2023 alone, youth unemployment rates hit 18.61%, 13.94%, and 12.49% in Brunei, Indonesia, and Malaysia respectively.
In particular, about 10 million Indonesian youths between 15 and 24 have been grappling with unemployment for over two decades.
With that, job creation has become a top concern for millennials and Gen Zs in Indonesia, outranking other prominent issues like poverty and corruption.
But the large number of advocates for job creation also suggests that youths who are employed are sharing the same sentiments. Why is this happening?
Mismatched Qualifications
Researchers have cautioned that the skills of high school and university graduates do not match what’s needed in the job market.
Creative professional Febriyan Purwanto, 27, felt that the gap between acquired and required skills is widening in an already competitive job market.
Having had his struggles finding a job, he shared that many fresh graduates in Indonesia are surprised to realize that the skills and knowledge they acquired through years of education were not enough.
“The truth is that many businesses are looking for highly-skilled individuals that honestly, you can only learn well if you want to learn on your own accord outside of university [curriculum],” he said.
“Studies can only get you so far”, he added.
It also seems that as industries become more tech-driven, traditional curriculums are unable to catch up with the growing demand for digital skills and soft skills like communication and critical thinking, which are typically developed through exposure to a working environment.
And it isn’t just the unemployed youths who are struggling with this misalignment. The struggle goes both ways.
“Many businesses [from] niche industries are struggling to find a decent talent to fill their roster”, shared Febriyan.
With that, youths are charting an alternative path in freelancing to gain new experiences and skill sets.
But is freelancing the way out for youths struggling to find a job?
Deeper reasons
I learned that many youths are taking up freelance work through connections, word of mouth, and online platforms like Fiverr, Upwork Inc, and projects.co.id, to gain skill sets that are relevant to their desired job. They also see it as a stepping stone towards a better job.
Despite taking on freelancing to gain a competitive edge, the mismatch in skillset is still a huge hurdle experienced by youths from different educational levels.
About one-fifth of youths surveyed in a British Council report also felt that there aren’t enough job opportunities in where they live. Most of them have a degree and are either unemployed or working part-time. And the surprising thing is that the employed feels so too.
“Many feel that their skills and vision are not utilized in full [at] their full-time job, so they look for part-time work outside to accomplish their goal”, shared Febriyan.
Febriyan is driven by his desire to leave a positive impact on people and society and feels a strong pull to take on freelance projects, even if he’s employed.
He adds that many of his friends and colleagues are also driven by their passion for creating impact, although many are not paid for the freelance projects they take on.
Apart from intrinsically motivated youths like Febriyan, others are seeking freelance work for financial reasons.
1 in 3 youths aged 16 to 35 across Indonesia feel they need more than 1 job to earn enough to support themselves, with rural youths (35%) feeling it more than urban youths (29%).
One of them is Michael Wijaya, 22, a fresh university graduate from Banten, who’s concerned about earning enough.
“I think freelancing is somewhat necessary. Largely because the minimum wage is not balanced with living expenses here, especially in Jakarta,” he said.
A 2022 report by Bank Indonesia indicated that salaries for many entry-level positions remained low, even in sectors where fresh hires are required to have higher education degrees.
This has pushed many in Indonesia to take on freelance on top of a full-time job for extra income.
In a 2023 survey, Indonesian youths are increasingly feeling the need for freelance work. About 72% of those aged 16 to 20, and 94% of those aged 21-26 already have one.
These consistently high numbers throughout various studies and surveys point to the inadequacy of jobs in Indonesia to support youths financially.
Beyond Freelancing
While the rising cost of living has resulted in an increasing desire among Indonesian youths to take on more jobs, Nara Sari (not his real name), 23, doesn’t feel the same pressure.
"We just want to survive man..." laments Nara.
When sharing about his motivations behind securing a job, it’s pretty simple: comfort, financial security, and the ability to afford things for his mother.
Nara’s thoughts underscore the mindset of youths more prominent in Indonesia.
In the same report by the British Council, supporting parents financially was a key motivator for youths to pursue stable employment.
79% of young Indonesians strongly agree that making their parents proud is one of their main goals, compared to an average of 67% in other Southeast Asian countries.
Nara and Michael are not the only ones who are frustrated by the misalignment in expectations and qualifications.
The frustration has pushed unemployed graduates to wait for better opportunities and the employed to take up additional freelance work.
Simply put, youths are unable to attain job satisfaction and financial comfort because of the lack of jobs available.
Having witnessed unemployment issues extending far into the lives of the employed, I thought that while working freelance could work as a short-term solution, the larger problem still lies in the lack of opportunities.
Youths aren’t simply asking for more jobs; they are asking for better jobs that match their ambitions and skillset.
The real challenge therefore lies in empowering youths to thrive, not just to survive.
But despite the huge challenges that lay ahead for these youths, they maintain an optimistic outlook for the future.
Indonesian youths want to help Indonesia thrive while also being given the opportunity to thrive themselves.
While freelancing may not be the best solution long term, it does offer unique opportunities for personal and professional development that full-time roles may not offer.
The exposure to a variety of projects can build a diverse portfolio and a strong network while developing resilience will be beneficial for youths in the long run.
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