Job Seekers and The Dominance of The Informal Sector in Padang Panjang City: A Qualitative Study

  • Hendri Febrian Program Magister Manajemen, Institut Teknologi Dan Bisnis, Haji Agus Salim Bukittinggi, Indonesia
  • Anne Putri Program Magister Manajemen, Institut Teknologi Dan Bisnis, Haji Agus Salim Bukittinggi, Indonesia
Keywords: job seekers, formal labor market, informal sector, adaptive strategy,, Padang Panjang City

Abstract

This study was motivated by the limited formal labor market in Padang Panjang City, which has not been able to optimally absorb job seekers, causing the informal sector to become a dominant employment option. This study aims to describe job seekers' understanding of the limitations of the formal labor market, their experiences in searching for jobs, the factors they consider in choosing jobs, and the position of the informal sector as an employment option. This study employed a descriptive qualitative approach. The research was conducted in Padang Panjang City, West Sumatra. The informants consisted of 7 people, namely 4 main informants who were registered job seekers and 3 supporting informants from Special Job Placement Units (BKK) and an employment analyst. Data were collected through in-depth interviews, observation, and documentation, and then analyzed through data reduction, data display, and conclusion drawing. The findings show that the formal labor market in Padang Panjang City remains limited due to the small number of large companies, the underdevelopment of labor-intensive industries, and the mismatch between company needs and job seekers' competencies. Under these conditions, job seekers remain active in seeking employment, but they still face obstacles such as educational requirements, lack of work experience, weak soft skills, and limited social connections. Their job choices are influenced by income, distance, working hours, comfort, skill suitability, experience, and career prospects. The informal sector is understood not as a final destination, but as a temporary option and an adaptive strategy when formal employment has not yet been obtained. Thus, the dominance of the informal sector in Padang Panjang City is the result of the interaction between the limitations of the formal labor market and the adaptive strategies of job seekers

Author Biography

Anne Putri, Program Magister Manajemen, Institut Teknologi Dan Bisnis, Haji Agus Salim Bukittinggi, Indonesia

Program Magister Manajemen, Institut Teknologi Dan Bisnis, Haji Agus Salim Bukittinggi, Indonesia

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Published
2026-07-02
How to Cite
Febrian, H., & Putri, A. (2026). Job Seekers and The Dominance of The Informal Sector in Padang Panjang City: A Qualitative Study. International Journal of Education, Vocational and Social Science , 5(03), 3214-3233. https://doi.org/10.63922/ijevss.v5i03.4912