The Role of Productive Zakat in Reducing Unemployment in Indonesia: An Islamic Economic Perspective

Abstract

Unemployment remains a persistent socioeconomic challenge in Indonesia, exacerbating income inequality and hindering national development. In response, Islamic economic instruments such as zakat have gained scholarly attention, particularly in their productive forms. This study explores the potential of productive zakat to alleviate unemployment by integrating Islamic social finance principles into national development strategies. Using a conceptual and theoretical methodology, the study draws from classical Islamic jurisprudence, contemporary economic theory, and recent empirical findings on zakat effectiveness. It analyzes how zakat—when managed productively—can transition from a mere poverty alleviation tool to a sustainable mechanism for employment generation. Key findings indicate that productive zakat initiatives, such as vocational training, entrepreneurship support, and microfinance programs, contribute significantly to job creation and economic empowerment among vulnerable groups. The paper underscores the importance of institutional synergy, transparent governance, and robust sharī‘ah-compliant mechanisms to optimize the socio-economic impact of zakat. The findings support the strategic inclusion of productive zakat in broader Islamic economic policies aimed at reducing unemployment. The research offers a conceptual framework for policymakers and stakeholders to harness zakat more effectively in addressing labor market challenges in Indonesia.