World Bank Highlights One in Seven People in China and Indonesia Are Unemployed

October 8, 2025 | 09:21 am

TEMPO.CO, Jakarta - Head of the World Bank for East Asia and Pacific, Aaditya Mattoo, highlighted the significant challenges faced by the younger generation in obtaining decent jobs, despite the relatively high employment rates in the East Asia and Pacific (EAP) region.

In its latest report, the East Asia and Pacific Economic Update released on Tuesday, October 7th, 2025, the World Bank noted that most countries in the region have high employment rates, indicating a large percentage of the working-age population being employed.

However, according to Aaditya Mattoo, the Chief Economist of the World Bank for East Asia and Pacific, the main challenge is faced by the younger generation. "The problem is that young people are struggling to find jobs, especially in countries like China and Indonesia, where one in seven people is unemployed," he said in a press conference in Jakarta on Tuesday, October 7th, 2025, as quoted from Antara.

Additionally, Mattoo pointed out that another challenge faced by the region is the low labor productivity. The World Bank stated that many large countries in the EAP are in the quadrant with employment rates above the global average, but their productivity still lags behind global standards, leading to lower wages and a diminished quality of life for workers.

The World Bank report emphasized that increased productivity is an urgent necessity for all countries in the region. Higher productivity means better wages and higher-quality jobs. However, for the younger generation, the increase in the number of job opportunities is also crucial.

The World Bank also stressed that reforms to create more productive jobs in the East Asia and Pacific region must be based on three main pillars. Firstly, enhancing human capacity through improved healthcare, education and training, as well as mastering skills relevant to new technologies. Secondly, expanding economic opportunities by promoting investment in the infrastructure sector, including transportation, energy, digital, and creating a conducive business environment for the entry of new companies and the opening up of access to private capital. Thirdly, effective policy coordination to ensure that the improvement of human capacity and the expansion of economic opportunities can progress in sync and mutually support each other.

"Creating more and better jobs is at the heart of the region's development challenge. Jobs are not just a source of income, but also provide dignity, purpose in life, and a path to a better future for individuals and their families," the report stated.

In the same report, the World Bank identified five sectors with high potential for job creation and resilience to global shocks. These sectors are agribusiness, healthcare, infrastructure and energy, manufacturing, and tourism.

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