Hard Work Is No Longer Enough: Is Gen Z Unproductive or Is the System Broken?

Destia Alifia Maharani, Divia Inggrit Aprilia
Faculty of Economics & Business, State University of Malang

JurnalPost.com - If a university graduate works overtime but still struggles to cover basic living expenses, is the fault with the individual or the system that employs them? This question is crucial when the public discusses Gen Z productivity, as the answer determines the direction our labor policies should take.

The narrative that Gen Z is less productive is easy to adopt because this group faces significant challenges in transitioning from education to the workforce. However, data shows that the obstacles are not simple. Statistics Indonesia (BPS) recorded the national Open Unemployment Rate (TPT) at 4.76 percent in February 2025, while the TPT for the 15-24 age group reached 16.16 percent, the highest among all age groups. At the same time, annual BPS data for 2025 shows that the proportion of 15-24-year-olds in the NEET category (Not in Education, Employment, or Training) is 19.44 percent. This means nearly one in five young people is outside the education, employment, and training systems.

These figures are insufficient to conclude that young people are unwilling to work or are unproductive. The TPT measures the proportion of unemployed people in the labor force, while NEET describes young people who are not working, studying, or in training. Both are better interpreted as indicators of a young person's position in the labor market and the transition process toward employment. When the youth unemployment rate is more than three times the national average, the relevant question is not just whether they have tried, but whether the labor market is capable of providing sufficient entry points that match their skills.

The next issue is the quality of work once someone successfully enters the labor market. In February 2025, BPS recorded that the proportion of informal workers remained at 59.40 percent. This structure is significant because employment status, income certainty, labor protection, and career development paths determine whether a job truly leads to economic independence. Therefore, the success of labor absorption cannot be measured solely by the increase in the number of people working; the quality and sustainability of those jobs must also be considered.

Working conditions must also be included in the discussion of productivity. The PwC Global Workforce Hopes and Fears 2025 survey, which included 812 respondents from Indonesia, found that 41 percent of workers in Indonesia reported experiencing burnout, and 25 percent felt overwhelmed by their work. While this figure is not specific to Gen Z and cannot be generalized to all young workers, the findings indicate that productivity issues do not lie solely with the workers. How work is designed, the demands placed on employees, support for skills development, and career certainty are all part of the work environment.

On the other hand, company complaints regarding the readiness of young workers must still be addressed. New graduates enter the workforce with limited experience and do not always immediately possess the skills required by companies. Therefore, it is inaccurate to place the problem solely on the workers or solely on the companies. There is a transition gap that needs to be bridged. Education, training, companies, and labor policies must work in a more connected chain so that young job seekers do not spend too long between the classroom and the workplace.

From this perspective, several improvements can be considered. First, internship and training programs need to be more closely aligned with real job requirements, rather than just providing certificates. Second, wage policies need to be continuously evaluated based on the goal of a decent living. Government Regulation (PP) Number 49 of 2025 was issued considering workers' purchasing power, a decent standard of living, business sustainability, and Constitutional Court Decision Number 168/PUU-XXI/2023. Third, companies can strengthen onboarding, mentoring, and feedback for new employees so that experience gaps are not immediately interpreted as work ethic issues.

Ultimately, the term "Gen Z is less productive" must be used with caution. Unemployment and NEET status indicate problems in access and transition to the labor market, but they are not direct evidence that an entire generation has low productivity. Productivity must be viewed through the relationship between work output and the resources used, as well as the conditions that allow workers to produce that performance. Therefore, the discussion on youth employment will be more useful if it does not stop at asking whether Gen Z works hard enough, but also assesses whether the education system, labor market, wages, and workplaces provide them with sufficient opportunities to work and grow.

Source: BPS Sakernas 2025; BPS NEET indicators 2025; BPS Employment Situation February 2025; PwC Global Workforce Hopes and Fears Survey 2025; Government Regulation Number 49 of 2025; Constitutional Court Decision Number 168/PUU-XXI/2023.