Youth Bulge and Gig Work: Rethinking Indonesia’s Labor Market Transformation through Demographic Perspective

Abstract

Indonesia's continuous demographic transition, characterized by a significant youth bulge, creates advantages as well as challenges to the country's labor market. This article examines the impact of demographic factors in determining the rise of gig work and reassess Indonesia's labor market transition from a demographic viewpoint. The study focuses on how the dominance of younger generations (15 to 24 years old) in the working-age population affects involvement in the gig work. The analysis analyzes age structure, educational attainment, and digital literacy as significant demographic drivers of employment patterns. This study uses a mixed method, with simple linear regression as quantitative approach and descriptive as qualitative approach, drawing on secondary data. The findings indicate that the youth bulge has contributed considerably to the growth of gig work. However, inadequate absorption into the formal labor market due to skill mismatches and delayed job growth has forced many young workers into precarious gig arrangements with little social safety and career security. The paper concludes that leveraging Indonesia's demographic advantage necessitates policy interventions that match youth characteristics with long-term employment opportunities, particularly through digital skills development, adaptive labor regulations, and inclusive social protection schemes for gig workers.