The Response of Generation X and Y

KOMPAS/RADITYA HELABUMI

A number of employees work in the Impact Hub coworking space in the Setiabudi area, South Jakarta, Thursday (25/11/2021).

The latest report of Statistics Indonesia (BPS) shows that members of Generation X (40-55 years) and Generation Y or millennials (24-39) comprise 68 percent of the economically productive population.

But many people in this demographic have lost their jobs as an impact of the Covid-19 pandemic.

Speaking at the Indonesian Demographic Outlook 2022 webinar, Ateng Hartono, the social statistics deputy at BPS, said the open unemployment rates among Gen Xers and millennials had reached 2.01 percent and 4.74, respectively in February 2020, the month before the country’s first Covid-19 cases were announced.

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In August 2020, six months after the pandemic was detected, the unemployment rate among the Gen Xers reached 3.68 percent and 7.16 percent for millennials. In August of this year, the figure dropped slightly to 2.95 percent for Gen Xers and 6.70 percent for millennials. A similar situation also occurred in other countries. (Kompas, 17/12/2021)

This situation is unique. The two productive generation groups have been affected by the pandemic. The most important thing is how to respond the problem at hand. Research has indicated that this condition, namely in the large number of the working age population, a high unemployment rate and a high poverty rate, will have an impact on social, political and security problems.

Therefore, the pandemic puts pressure on this population group.

However, various experts are of the same opinion that the response of the two generations will be different. Gen Xers may be better equipped to deal with this problem. The uncertainty is still acceptable for this generation. However, something that cannot be ignored is that there will be a lot of pressure on this generation because they are the sandwich generation, which must economically support their parents and children. Therefore, the pandemic puts pressure on this population group.

Kompas/Priyombodo

Employees work beside the swimming pool at the Jojonomic Playground 5.0 office in the Cilandak area, South Jakarta, Friday (28/5/2021).

For Gen Y or millennials, the pandemic is the third blow in their life journey. The first was the monetary crisis in 1998 and the second was the global financial crisis in 2008. The older millennials are heavily involved in family matters. As they are also a part of young families, their difficulties could also affect domestic affairs. However, they can adapt to this situation by taking advantage of digital devices for various purposes. In fact, innovations emerge from this group due to such pressures.

The government needs to pay attention to this problem.

The main problem with the BPS report is the rise in unemployment and poverty rates due to the pandemic. The government’s social safety net can help solve the problem. However, prolonged pressure can make them restless and depressed as they become more worried about their future. The government needs to pay attention to this problem.

Economic recovery is the key to solving this problem so that it will not turn into social and political problems. Seeing the journey of the millennial generation and the innovations that have been made, they are expected to be able to provide solutions amid this pressure. Like the entrepreneurial principles of millennials, problems and difficulties will encourage them to come up with solutions until they become business ideas.

(This article was translated by Hendarsyah Tarmizi).