Part 8/14:

The Informal Sector and Underemployment

Across these countries, a troubling pattern emerges: large segments of youth are trapped in informal employment that lacks social security, benefits, and clear pathways for advancement. In India and Indonesia, more than 88% and nearly 60% of youth respectively work in the informal economy.

Aris, in Indonesia, exemplifies this reality. His work as a construction laborer, paid daily and with no social protections, illustrates how many young people must accept low-skill, insecure jobs simply to earn a livelihood. The high prevalence of underemployment signifies that many employed youth are working below their potential, which limits productivity and affects long-term economic growth.