The Influence of Generation Z to Unemployment in Indonesia Start Up

Abstract

Generation Z, born between 1997 and 2012, accounts for 27.94% of Indonesia’s population. Based on BPS data (2023), 42.62% of Gen Z aged 15–24 are unemployed due to limited work experience, skill mismatches, and age-related hiring restrictions. This situation creates an imbalance between workforce supply and demand, particularly in start-up companies that require adaptive and resilient employees. Although Generation Z is recognized for their digital literacy and entrepreneurial mindset, many face challenges adjusting to the fast-paced and demanding nature of start-up environments. This study aims to examine the influence of Generation Z’s characteristics on the unemployment rate in Indonesia’s start-up sector. A quantitative method was used by distributing questionnaires to individuals with experience working for or applying to start-ups. The findings reveal a notable gap between Gen Z’s work expectations and the actual conditions within start-ups, contributing to higher unemployment among this group. The study emphasizes the need for adaptive HR strategies aligned with generational traits and modern workplace demands.