Youths and their probability to enter middle-class jobs during the COVID-19 pandemic in Indonesia

Abstract

ABSTRACT While the middle class has historically served as an engine for economic growth, Indonesia’s performance in encouraging the growth of middle-class jobs is still relatively low. This is also the case for youth, which is considered to have a crucial role in economic development. This study examines the possibility for young people to enter middle-class jobs in Indonesia, as well as the socioeconomic factors which may be driving the process. Using the 2015 and 2020 National Labor Force Surveys (Sakernas), our findings show that youth groups have a lower chance of becoming middle-class workers, both before and during the COVID-19 pandemic. However, interestingly, the study finds that the chance of some youth subgroups – in particular young males – of becoming middle-class workers during the pandemic is greater than during previous periods. Other characteristics that can increase youth opportunities of becoming middle-class workers are being male, being married, having higher education, and living in an urban area. In addition, there are four dominant sectors in supporting middle-class jobs for youth, namely mining, financial services, industry, and transportation.