Indonesian Political, Business & Finance News

Encouraging the Young Generation to Adapt to the Changing World of Work Landscape

| Source: DETIK Translated from Indonesian | Economy
Encouraging the Young Generation to Adapt to the Changing World of Work Landscape
Image: DETIK

The phenomenon of educated unemployed workers not only explains the sluggishness of the business and industrial sectors but also increasingly clarifies the escalation of changes in the world of work landscape driven by technological developments, particularly automation and the use of artificial intelligence (AI). The business and industrial sectors are certainly adapting to the dynamics of changes in production processes and commerce, including distribution. These changes present a challenge for nation-states to prepare a workforce that is qualified for the changing world of work landscape.

The theme of the changing world of work landscape has become common understanding and knowledge, as everyone must adapt to technological developments that directly affect the dynamics of daily life. However, because technological developments are clearly continuing to change the world of work, refreshing this theme needs to be continuously echoed to build collective awareness and encourage the workforce generation to adapt. Not merely adaptation, but far more important is forming and building qualifications that align with the needs of today’s world of work.

In this context, this theme is relevant to the phenomenon of millions of graduates who now hold the status of unemployed workforce members. The National Labour Force Survey (Sakernas) by Statistics Indonesia (BPS) in May 2026 recorded that the total number of unemployed people with diploma (D4) to postgraduate (S1, S2, S3) education backgrounds in Indonesia reached 1.03 million people (6.09 percent) of the total highly educated workforce. This record is in line with BPS data as of February 2025 which stated that out of a total of 7.28 million unemployed people in Indonesia, the educated unemployed population from D4 to doctoral (S3) levels reached 1,010,652 people.

Millions of these graduates are part of the wave of young people currently seeking job vacancies. Competition for jobs is becoming increasingly tight as the job market feels very crowded due to the overflow from the community of young workers who have become victims of layoffs (PHK). A single job opportunity or position can be contested by hundreds to thousands of job seekers.

The fact that millions of graduates in Indonesia are unemployed is certainly very concerning. When tracing the factors causing these graduates to have difficulty finding work, the most correct and relevant answer is the sluggishness in the business and industrial sectors, which also marks the sluggishness of the national economy. The business and industrial sectors are sluggish due to declining demand as a result of the weakening purchasing power of the public, particularly the middle-class community. Demand for local industrial products, such as manufactured goods, continues to shrink because the domestic market is flooded with imported products entering illegally or through smuggling.

Besides the sluggishness factor in the local business and industrial sectors, it is possible that millions of these graduates have difficulty finding work because of the escalation of changes in the world of work landscape driven by technological developments, particularly automation and the use of artificial intelligence or AI. The world of work landscape, which previously encompassed conditions, patterns and principles of professionalism, has now clearly changed. Automation and the application of AI even enable remote work and Zoom meetings. The function of office buildings and spaces is increasingly diminishing.

Automation and the application of AI in today’s world of work, whether acknowledged or not, have reduced the role and function of the human brain and labour. Although it will not be able to fully replace the role of humans, automation and the application of AI have proven to have eliminated basic administrative work and data entry. These two jobs are now carried out by automated systems. Customer service functions have partly shifted to smart chatbots. Even some factory and cashier jobs are beginning to decrease because these functions can be performed by machines or robots. Everyone has experienced this transition in the dynamics of today’s daily life.

Therefore, it is possible that another causal factor for the difficulty of the current workforce generation, including millions of graduates, in finding work is the factor of skills mismatch with the needs of the business and industrial sectors. Although it does not yet cover all aspects, the business and industrial sectors, including within the scope of government management, have implemented AI and automation in completing a number of tasks. For the sake of achieving efficiency, the dynamics of work in the current era are beginning to rely on AI, for example for the speed of analysing data, translating languages, and drafting documents.

Like it or not, this tendency brings about a renewal of worker qualifications. The renewal of worker qualifications is inevitable because all entities want to achieve efficiency with new systems and mechanisms presented by the latest technology. Thus, the dynamics of work in the business, industrial and government institution sectors are indirectly beginning to be driven to adapt to automation and the application of AI. Consequently, the need for worker qualifications is changing and becoming different compared to previous eras.

The increasingly widespread application of AI and automation has given rise to the need and demand for workers who are qualified for the changing world of work landscape. According to a World Economic Forum report, although it changes old ways of working, AI presents millions of new job opportunities for anyone willing to adapt to master technology. It is reported that demand for AI and data experts is high, while the human role is shifting towards strategic and creative tasks. There is a growing belief that human collaboration with machines increases productivity.

In the same context, according to the Ministry of Communication and Digital Affairs (Kemkomdigi), Indonesia needs 12 million digital talents by 2030. This number has increased from the previous projection of nine million. The reason for the increase is the rapid adoption of AI. Therefore, the focus on fulfilling the number of workers is more on…

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