Evaluating active labour market programmes: Possibilities for youth employment in Indonesia and beyond

Abstract The Indonesian government has implemented the Pre-Employment Card Programme in response to current employment challenges, including high unemployment and underemployment rates among the youth in Indonesia. This research aims to analyse the Programme’s impact on the labour market outcomes, especially involving the youth. The research employs propensity score matching to examine the Programme’s impact on the probability of securing employment and the work hours among the youth. The study involved participants who were unemployed and employed when enrolling in the programme. The results show that the programme was statistically significant in increasing the probability of employment among the unemployed participants. However, it was not statistically significant to increase the work hours of those employed during the enrolment. These findings provide an initial assessment of the programme’s effectiveness in addressing employment challenges faced by the youth in Indonesia.