Unemployment in Indonesia

Unemployment is a phenomenon that occurs when a person who is actively searching for
employment is unable to find work. Unemployment is often used as a measure of the health of the
economy. The most frequently measure of unemployment is the unemployment rate, which is the
number of unemployed people divided by the number of people in the labor force.

The dominance of unemployment in indonesia is Frictional Unemployment and Cycical

Unemployment. Frictional Unemployment arises when a person is in-between jobs.after a person
leaves a company, it naturally takes time to find another job, making this type of unemployment
short-lived. It is also the least problematic from an economic standpoint.

For example; in Jakarta, there’s so many people who lose their jobs because they had been replace
by the techonology like robot or something like that. So they left the company forcefully and trying
to find another job or totaly stop working. In this situation we can’t blame the owner of the
company directly, because the company has to prioritize the eficiency of production process. They
more concerned to he profit rather than the company – labor relation.

In the another case, there is a cyclical unemployement problem in indonesia. It is occures because of
recession economic activities. As a developing country, the economic recession has been a major
problem that must be faced. The impact of this situation is massive unemployeent. There is many
reason that make the company dismissing the employee. First, the company could not pay the
wages and salary for the labor because of inflation and the only ways to save the company is
dismissed. Second, the company could not buy any suplies or material for producing activity because
the price is rising up massively. The situation of economy make the company has to make decission
that more unriskable for them. Between dissmising the employee or stoping the company activity.

In 2016 more than 35% copany in indonesia dismissing the employee because of economic
recession. And it is causing explosion in the number of unemployee. It is aproved by statistic that
shown by the picture below, gross domestic product (GDP) from 2015 to 2016 had been decrease.

The impact of unemployement on economic activities such as the inhibition of the production
activities due to the GDP (Gross Domestic Product) and GNP (Gross National Product) decreased, so
that the output of the production have a low quality. The not saleable of produt in the market
because quality of the output produced is low, so that the distribution activity humpered.