Variables Affecting the Percentage of Informal Workforce in Gen Z in Indonesia 2021-2023

Syofmarlianisyah Putri; Achmad Prasetyo

doi:10.47198/jnaker.v20i3.528

Syofmarlianisyah Putri, Achmad Prasetyo

https://doi.org/10.47198/jnaker.v20i3.528

Issue
Vol. 20 No. 3 (2025): Gig Workers

Keywords:

informal worker, gen z, panel regression Tenaga Kerja informal, Regresi Panel, Gen Z

PDF

Abstract

Indonesia, as the fourth most populous country in the world, has great human resource potential to drive economic growth. Based on BPS data, around 69.5% of Indonesia's population is of productive age, which also increases the number of workforce every year. However, limitations in providing formal employment can cause some of the workforce, including Gen Z, to be absorbed into the informal sector. Although the informal sector has continued to grow in recent years, this sector is still faced with a number of problems, such as low wages, minimal social protection, and the dominance of low-educated workers. This study focuses on the period 2021–2023, namely the post-COVID-19 pandemic recovery period marked by the acceleration of digitalization in the world of work. The purpose of this study is to analyze the variables that influence the percentage of Gen Z informal workers in Indonesia. Using data sourced from BPS and the Ministry of Manpower, the FEM SUR method was produced on a panel of data from 34 provinces. It was found that the variables of average length of schooling, income, internet, certified training, provincial minimum wage, and GRDP per capita had a significant negative influence on the percentage of informal workers of Gen Z.. This finding suggests that improving the quality of education and economic support can drive Gen Z towards more formal and protected jobs.

Full text article

Generated from XML file

References

Amelya, J. R., & Marna, E. J. (2023). Pengaruh Infrastruktur Sosial Terhadap Produk Domestik Regional Bruto di Kawasan Timur Indonesa Tahun 2011-2020 (Studi Kasus 16 Provinsi di Kawasan Timur Indonesia). Jurnal Salingka Nagari, 58-71.
Angel-Urdinola, D. F., & Tanabe, K. (2012). Micro-Determinants of Informal Employment in The Middle East and North Africa Region. World Bank.
Antyanto, I. N. (2014). Analisis Faktor-Faktor yang mempengaruhi Tenaga Kerja Memilih Sektor Informal sebagai Mata Pencaharian (Studi Kasus pada Pasar Penampungan Sementara Merjosari, Malang). Jurnal Ilmiah Mahasiswa FEB .
Basid, R., & Atmaja, J. T. (2022). The Effect of Generation Z Workforce Characteristic on The Gig Economy with Work Life Integration As a Mediator. Iconic-RS.
Birgitta, C. (2021). Analisis Pengaruh TPAK, Pengangguran, Upah Bersh, dan Pendidikan terhadap Penyerapan Tenaga Kerja Sektor Informal di Indonesia Tahun 2015-2020. 1-16.
Cantika, I. B. (2019). Analisis Faktor-Faktor yang Memengaruhi Penyerapan Tenaga Kerja Wanita Sektor Informal di Jawa Timur.
Comola, M., & de Mello, L. (2009). How does decentralised minimum-wage setting affect unemployment and informality? The case of Indonesia (OECD Economics Department Working Papers No. 705). OECD Publishing.
Deloitte. (2024). Gen z and Millenial Survey. Deloitte.
Dewi, N. K., & Sirait, T. (2024). Pemodelan Tingkat Pengangguran Usia Muda di Indonesia Tahun 2015-2021 dengan FEM SUR. Journal Mathematics and Its Applications, 71-79.
Gujarati, D. N., & Porter, D. C. (2009). Basc Econometrics 5th ed. McGraw-Hill.
Gunawan, B. T. (2020). Pengaruh upah minimum terhadap employment transition: Analisis level individu di Pulau Jawa. Jurnal Ketenagakerjaan, 1-17.
Hapsari, I. M., Yu, S., Pape, U. J., & Mansour, W. (2023). Informality in Indonesia: Levels, Trends, and Features(Policy Research Working Paper No. 10586). World Bank.
Hutagalung, I. P., & O, D. (2022). Analisis Regresi Data Panel Dengan Pendekatan Common Effect Model (CEM), Fixed Effect Model (FEM) dan Random Effect Model (REM) (Studi Kasus: IPM Sumatera Utara Periode 2014-2020). FARABI Jurnal Matematika dan Pendidikan Matematika, 217-226.
ILO. (2023). Global employment trends for youth 2023.
ILO. (2024). World Employment and Social Outlook:Trend 2024. International Labour Organization.
Indradewa, I. G., & Natha, K. S. (2015). Pengaruh Inflasi, PDRB, dan Upah Minimum terhadap Penyerapan Tenaga Kerja di Provinsi Bali. Jurnal Pembangunan Universitas Udayana, 923-950.
Izzaty, & Sari, R. (2013). Kebijakan Upah Minimum di Indonesia. Jurnal Ekonomi dan Kebijakan Publik, 131-145.
OECD. (2020). OECD Employment Outlook.
Poetiray, M. Y., Purnomo, D., & Utomo, A. W. (2023). Peluang dan tantangan pemanfaatan bonus demografi pada aspek. Jurnal Kependudukan Indonesia , 1-14.
Putranto, F. G., & Natalia, C. (2022). Generasi Z dan Transisi Pekerja Blue-collar: Tantangan di Tengah Pandemi. Jurnal Ekonomi Indonesia, 143-158.
Sibagariang, F. A., Mauboy, L. M., Erviana, R., & Kartiasih, F. (2023). Gambaran Pekerja Informal dan Faktor-Faktor yang Memengaruhinya di Indonesia Tahun 2022. Seminar Nasional Official Statistics 2023 (pp. 151-160). Jakarta: Politeknik Statistika STIS.
Spiegel, S. J. (2012). Formalisation policies, informal resource sectors and the de-/re-centralisation of power. Bogor: CIFOR.
Sugiharti, L., Aditina, N., & Esquivias, M. A. (2022). Worker Transittion Across FormalL and Infiormal Sectors: A Panel Data Analysis in Indonesia. Asian Economic and Financial Review, 923-937.
Theodora, A. (2024, Agustus 2). Banyak Gen Z jadi Pekerja Informal, Sukarela atau Terpaksa? Retrieved November 1, 2024, from Kompas.com: https://www.kompas.id/baca/ekonomi/2024/08/02/banyak-gen-z-jadi-pekerja-informal-sukarela-atau-terpaksa?status=sukses_login&status_login=login&loc=hard_paywall
World Bank. (2018). Informal employment and its consequences: Dynamics in Indonesia's labor market.
World Bank. (2022). Indonesia economic prospects: Financial deepening for strong and inclusive growth. World Bank Group.

Authors

Syofmarlianisyah Putri

a:1:{s:5:"en_US";s:25:"Politeknik Statstika STIS";}

Achmad Prasetyo

Politeknik Statstika STIS

praze@stis.ac.id (Primary Contact)

Putri, S. and Achmad Prasetyo (2025) “Variables Affecting the Percentage of Informal Workforce in Gen Z in Indonesia 2021-2023”, Jurnal Ketenagakerjaan, 20(3). doi: 10.47198/jnaker.v20i3.528.