Impact and How to Overcome Unemployment

Unemployment - The problem of unemployment is not just a matter of economics, but also social problems. The resulting impacts will affect the implementation of national development in both the short and long term. Here's Zona Students presenting a full explanation of Impact and How to Overcome Unemployment. May be useful. Check this out!!!



Impact of Unemployment

Unemployment is extremely impact on economic life and social life of society. Declining economic growth, and even declining levels of welfare society is one of the effects of unemployment. Here are some of the impact of unemployment on the economy and social life

Lowering of Economic Activities
Unemployment led to a decline in purchasing power. Declining purchasing power caused a decline in demand for goods and services. This resulted in entrepreneurs and investors are excited to expand and the establishment of new industries so that the economic activity to be down.

Lowers Growth and Income Per Capita
People who do not work (unemployed) will not produce goods and services. That means more people are unemployed, the GDP (Gross Domestic Product) produced will decrease. GDP decline will cause a decline in economic growth while the decline in per capita income.

Improving Social Costs
Unemployment turned out to result in increased social costs. Because, unemployment requires that society bear the costs such as the cost of care of patients with stress (depression) because of unemployment, security costs and treatment costs due to increasing no crime committed by the unemployed, as well as the cost of restoration and renovation of several places due to demonstrations and riots sparked by discontent and social envy the unemployed.

Lowering Skill Level
With unemployed, sesepramg skill levels will decrease. The longer the unemployed, the lower the level of one's skill.

Lowers Revenue
People who are unemployed do not have the income (revenue). That means more and more people are unemployed, will increasingly come down anyway revenues derived from income tax

How to Overcome Unemployment

In general, how to overcome unemployment is to increase investment, improve the quality of human resources, transfer of technology and invention of new technologies, improvement of legal instruments in the field of employment, and others. Technically policy efforts in that direction can be reached by various policies, for example:

Organizing the exchange of labor market
The labor market is the delivery of information by companies or parties who need workers to the general public. The purpose of this activity is to enable the communication between companies and job seekers. During this time many labor market information that is not capable socialized to the community, resulting in job information can only be accessed by certain groups.

Promote informal economic activities
Policies in favor of the development of the informal sector, by developing a domestic industry that can create jobs. Today has been no government agency specifically address the issue of informal economic activities are the Ministry of Cooperatives and SMEs. Besides the development of the informal sector is required keterpihakan of local government.

Improving labor skills
The development of human resources by increasing skills through training internationally certified. Based on a survey on the quality of Labor shows that the Human Development Index ranks Indonesia in Asia in 2000 is ranked 110. While other countries such as Vietnam there are rated 109, the Philippines (77), Thailand (69), Malaysia (59), Brunei Darussalam ( 32), Singapore (25), Japan (9). These data show the low quality of human resources that increase their skills become very necessary.

Improving the quality of education
Encourage the advancement of education, with an adequate education allows one to obtain better employment opportunities. Today, as prescribed by law, the government is mandated to allocate 20% of state budget funds for education nationwide.

Establishing centers of vocational training
Job training centers need to be established to carry out the training of workers for filling vacancies that exist.

Promote economic growth
The government needs to continue to promote economic growth that will provide opportunities for employment creation.

Encourage investment
The government needs to continue to encourage the inflow of investments from domestic and abroad to create employment opportunities in Indonesia.

Increase transmigration
Transmigration is the government's move leveling a population of densely populated island to island is still sparsely populated and optimize the existing natural resources.

Deregulate and debirokrasi
Deregulation and debirokrasi in various industries to stimulate the emergence of new investment. Deregulation means changes in regulatory rules against certain fields. Deregulation usually towards regulatory simplification. Debirokrasi means to change the structure of government officials who handle specific areas. Debirokrasi usually towards simplifying the number of employees / government agencies that deal with a particular matter.

Expanding employment
Expansion of employment opportunities by establishing new industries, especially labor-intensive. With the era of free trade regionally and internationally is actually open wider employment not only in the domestic market to overseas. It depends on the readiness of the workforce to compete freely in the international labor market.

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