PAPER MACRO ECONOMICS

EFFECT OF UNEMPLOYMENT ON POVERTY IN INDONESIA

I.  Introduction

A. Background

In Indonesia today are not little people with an income that is below average, Indonesia is a developing country where per capita income of the population is still less than the actual needs of the community. Problems may arise, especially in the field of economy, the problems that arise such as unemployment and poverty.

Poverty in Indonesia has been happening since time immemorial in Indonesia where the government can not reduce poverty from year to year and even poverty has become a serious work for our government. Many ways have been done by the government, but to suppress or even reduce poverty is difficult. Indonesia as a country rich in natural resources, it was not a few people who are poor.

Unemployment is a person belonging to the labor force and wanted to get a job but have not been able to get it. Unemployment problem which cause the level of national income and the level of prosperity of the people do not reach their full potential is the main problem that most mainstream macro economics. The absence of income causes the unemployed should reduce their consumption expenditure leading to a decreased level of prosperity and well-being. Prolonged unemployment can also cause a bad psychological effect on the unemployed and their families

Unemployment Explosion Due to financial crisis, many entrepreneurs go bankrupt because of debt-ridden banks or loans to business associates. So many workers or factory workers who had laid off by the company in which she worked in reducing the amount of cost that is used to pay the salaries of the workers. This has to be one of the triggers of the explosion of unemployment

In society, millions of unemployed people also queued waiting for energy used. The large number of unemployed in Indonesia will gradually lead to many social problems that will become a social crisis, because many people are frustrated to face his fate. High unemployment, population explosion problem, unequal income distribution, and many other problems in our country to be one of the main factors the low standard of living of the population in our country. However, the factors causing the low standard of living in developing countries is the limited absorption of resources, including human resources. Development and human resource development requires a very high commitment and a long period of time. The development process is a very difficult process of empowerment, should be done gradually and followed by all involved.

One of the factors that lead to high levels of unemployment in our country is too much labor directed to the formal sector, so that when they lost their jobs in the formal sector, they are desperate and can not afford to create their own jobs in the sector intellectual informal.Pengangguran is inseparable from the question of the world of education that are not capable of producing quality manpower as per the demands that the job market is often well-educated workforce we can not compete with foreign workers. This phenomenon is being faced by our nation where many well-educated workforce is unemployed even though they actually bears title. The weaknesses of our education system is the difficulty of providing that education can actually foster the professionalism of someone in a career or work.

B.      Problem

Issues to be discussed in this paper are:

1.      What causes unemployment?

2.      What is the impact of unemployment on the economy and poverty?

3.       How to cope with the impact of unemployment on poverty?

C.    Purpose

Scientific research purposes for writing this is:

1.      Can know the types of unemployment

2.      Determine the cause of unemployment.

3.      Knowing the impact of unemployment on the economy and poverty.

D.    Advantage

1.      Useful for writers and readers to gain knowledge and information about unemployment and poverty

2.      Understand understanding of the scope of the macro economy, especially in Indonesia.

3.      Can see the picture and information about the effect of unemployment on poverty in Indonesia

4.      Can see the picture and information about the effect of unemployment on poverty in Indonesia

5.  Indonesia's economy may improve some of the factors that cause unemployment affects poverty in Indonesia

6.      From the results of this study are expected to provide additional outlook on Indonesia's macroeconomic policies, especially in analyzing and dealing with unemployment in Indonesia.

E.    Approach

1.      Gather information from various sources

2.      Using the library approach.

II.         DISCUSSION

A.      Unemployment Problem

The unemployed people who are in the productive age / working age who are not working. Based on the cause of unemployment can be distinguished 5 types:

a.    Structural Unemployment: Unemployment that occurs as a result of changes in the structure and economic activities as a result of economic development.

b.    Cycle of unemployment: Unemployment that occurs as a result of changes in the level perekonomian.misalnya companies must reduce production so that some workers were laid off.

c.    Frictional unemployment: unemployment that occurs when the economy reaches full employment level of use (full employment), where labor trying to change jobs or shift workers or temporary strike to demand higher wages.

d.   Seasonal unemployment: Unemployment caused by changes in the demand for labor periodic nature, such as unemployed at the time lapse between the planting and harvesting seasons

e.    Technological unemployment: Unemployment caused by technological changes such as replacing human labor with machines.

Unemployment is generally caused because the labor force is not proportional to the number of jobs that can absorb it. Unemployment is often a problem in the economy due to the presence of unemployment, productivity and incomes will be reduced so as to give rise to poverty and other social problems. The unemployment rate can be calculated by comparing the number of unemployed to the total labor force expressed as a percent.

The absence of income causes the unemployed should reduce their consumption expenditure leading to a decreased level of prosperity and well-being. Prolonged unemployment can also cause a bad psychological effect on the unemployed and their families.

One significant problem in Indonesia is the problem of unemployment. Unemployment could be diverse kinds of factors, and this should not be ignored by the government. Combating unemployment is not the responsibility of the government alone. The entire population of Indonesia is expected participation to resolve this issue. Without the cooperation of the government and the society it is impossible to tackle unemployment in Indonesia. Here are some common causes of unemployment in Indonesia.

a.    Low education. Low education dpat cause a person difficulty in finding a job. In because all companies require a minimum high school employees.

b.    Lack of skills. Many college students or high school graduates who already have the criteria in the work, but still lacking in technical skills. So hard to find a job.

c.    Lack of jobs. Each year, Indonesia has a number of school or college graduates are so high. A very large number is not balanced with the existing jobs, whether provided by government or private.

d.   Lack of community EQ levels. EQ includes a person's ability level in mengandalikan emotions, which affects the speaking skills / communication, social, self-confidence, and other properties that support life in the community. People who are good at communication and social skills more easily get a job in the appeal who is always quiet and did not dare to explore your own potential.

e.    Feeling lazy and dependent on others. Consider a graduate degree and then did not want to work and would rather hang of life to a parent or spouse if married. He includes unemployment, but that he missed an opportunity to create a job for others.

f.     Do not want to entrepreneurship. Generally someone who just graduated school / college fixated in finding a job, as it is a destination that is absolute. So competition for jobs larger in comparison make an effort.

B.      The Impact of Unemployment

Unemployment Issues and Social Crisis If unemployment is thus left to linger then it is most likely to encourage a social crisis. For many people, getting a job is like getting self-esteem. Losing a job can be loss of self-esteem.

The purpose of economic development of a country is basically improving the prosperity and economic growth in a state that is stable and the unemployment rate rose terus.Jika relatively high in a country, it would hinder the achievement of economic development goals that have aspired. This happens because unemployment adversely affect the economy.

Unemployment can lead to the inability to maximize the level of prosperity achieved. This happens because unemployment can lead to real national income (real) people reached will be lower than the potential revenue (revenue that should have been). Unemployment will cause national income derived from reduced tax sector. This occurs because of high unemployment will lead to decreased economic activity so that income would be decreased. Thus, the tax must be paid out of the public would be decreased.

Unemployment does not promote economic growth. Unemployment will cause the purchasing power will be reduced so that the demand for the goods produced will be reduced. Such circumstances do not stimulate the investor to make the expansion or establishment of new industries. Thus, the level of investment declined so economic growth will not be encouraged.

Unemployment Impact Of Social Life in Indonesia :

a.    Poverty

     Poverty occurs because of the inability of the community to meet basic kabutuhan such as food, health, clothing and others - others. This inability is caused kerana the family members who are unemployed or not working so hard to buy or insufficient daily life.

b.    Slum housing

    Many villagers who want to work in the city (urbanization) but the villagers less competitive, so it can not work, consequently, to preserve life in the city, they live in slums.

c.    Street Children

     Life is not sufficient to require that all family members to work, so, they went busking, in other circumstances, when it does not have a place to stay require that children - children to live on the streets.

d.   Students Out of School

     Limited financial means to pay for school makes parents - children were forced to lay off his son's school, and requires them to work to earn money for food and other necessities.

C.      How to Cope with Unemployment

Problem of unemployment is a problem that adversely affect economic activity, both in the production, distribution, and consumption. Therefore, efforts should be done to tackle unemployment continuously. ways to overcome pegangguran as follows :

1.    Expand employment opportunities

According Soemitro Djojohadikusomo, job opportunities can be expanded in two ways, namely:

a.       Industrial development, especially the kind of labor-intensive industries

b.      Through a variety of public works projects, such as roads, waterways, dams and bridges.

2.    Lowering the amount of labor force

    There are several ways you can do to reduce the amount of labor force, such as family planning, compulsory education and the minimum age restriction.

3.    Improve the quality of work of the existing workforce, so as to adapt to the demands of the state. Many ways you can do, like go to school to a higher level, courses, training centers, attend seminars and others.

All kinds of ways to overcome unemployment, according to the type of unemployment is:

1.      How to overcome structural unemployment

To cope with this kind of unemployment, the means used are:

·      Increased mobility of capital and labor

·      Immediately move the surplus labor of the place and the advantages to the sector and the lack of economic sectors

·      Workforce training opportunities for filling vacancies (vacancies) job vacant

·      Immediately set up a labor-intensive industry in areas experiencing unemployment.

2.      How to overcome the frictional unemployment

To cope with this kind of unemployment, the means used are:

·      Expansion of employment opportunities by establishing new industries, especially labor-intensive

·      Promote the development of the informal sector, such as home industry

·      Transmigration program to promote employment in the agricultural sector and other formal sector.

3.      How to cope with seasonal unemployment

To cope with this kind of unemployment, the means used are:

·      Provision of information quickly if there are vacancies in other sectors

·      Conduct training in other skills to take advantage of the time while waiting for a certain season

4.      How to cope with unemployment cycle

To cope with this kind of unemployment, the means used are:

·      Directing public demand for goods and services

·      Increase purchasing power.

 III. CONCLUSION

  Unemployment is a person who does not have a job, full of people who do not work and (still or were) looking. Poverty is the greatest result of unemployment. Indonesia is a country with high levels of poverty caused by unemployment, because that banya problems that occurred in Indonesia include economic issues. Indonesian government should strive to reduce poverty so as not to cause problems even worse. Among them there are the programs that are intended for the poor to reduce poverty in Indonesia. Expected earlier programs can actually reduce poverty and make Indonesia become more developed countries, independent and better future.

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