Unemployment is a social problem that is often faced by many countries, including Indonesia. Unemployment means that there are a number of people who are able and willing to work, but do not find work that suits their skills and desires. Unemployment can have negative impacts on individuals, families and society, such as poverty, crime, stress and social conflict.
Causes of Unemployment
The causes of unemployment are complex and varied. There are several factors that can influence the unemployment rate in a country, such as economic conditions, job market structure, education, skills, technology, and government policies. The following are several detailed explanations of several causes of unemployment:
Economic conditions
When the economy experiences a recession or crisis, demand for goods and services decreases, so companies reduce production and cut workforce. This causes cyclical unemployment, namely unemployment that occurs due to fluctuations in the business cycle.
Labor market structure
When changes occur in the structure of the labor market, for example due to globalization, shifts in industrial sectors, or technological developments, some workers may not have the skills or qualifications that match market needs. This causes structural unemployment, namely unemployment that occurs due to a mismatch between supply and demand for labor.
Education
When the education system is unable to provide quality education that is relevant to the needs of the job market, education graduates may experience difficulties in finding work. This causes educational unemployment, namely unemployment that occurs due to the low level of education or skills of workers.
Technology
When technological advances occur that replace human workers with machines or robots, some workers may lose their jobs. This causes technological unemployment, namely unemployment that occurs due to technological developments that reduce the need for labor.
government policy
When the government issues policies that have a negative impact on the labor market, for example by raising taxes, setting minimum wages that are too high, or imposing excessive regulations, some companies may reduce investment or move operations to other countries. This causes policy unemployment, namely unemployment that occurs due to government policies that hinder economic growth and job creation.
Efforts to Overcome Unemployment
Unemployment is a social and economic problem that requires a comprehensive and sustainable solution. What efforts should be made to overcome unemployment? Here are some steps you can take:
Improving the quality of education and training
Quality education and training can improve the skills and competencies of job seekers, so that they can compete in a dynamic and competitive job market. Education and training can also help job seekers to adapt to changing technology and industry needs.
Encourage entrepreneurship and innovation
Entrepreneurship and innovation can create new jobs, both for entrepreneurs and for workers working in the informal sector. Entrepreneurship and innovation can also increase productivity and economic competitiveness, thereby attracting investment and increasing growth.
Increase access to capital and credit
Capital and credit are important factors for starting and developing a business, especially for micro, small and medium entrepreneurs (MSMEs). Easy and cheap access to capital and credit can help entrepreneurs to expand their businesses, buy raw materials, provide facilities, and pay workers' salaries.
Increase social protection and job security
Social protection and job security are basic rights for every worker, both formal and informal. Social protection and job security can provide a sense of security and protection for workers, especially in times of crisis or when they lose their jobs. Social protection and job guarantees can also encourage labor mobility, increase motivation and improve welfare.
The reasons for unemployment can only be reduced, not resolved
Unemployment is an economic and social problem that is often faced by many countries. But can unemployment be resolved completely? The answer is no. Here are some reasons why unemployment can only be reduced, not solved:
Unemployment is dynamic
This means that it always changes along with developments in the economy, technology and government policies. For example, when an economic crisis occurs, many companies go bankrupt or lay off employees, thereby increasing the unemployment rate. On the other hand, when the economy improves, many companies re-recruit employees or open new jobs, thereby reducing the unemployment rate. Apart from that, technological advances also have an effect on unemployment. Increasingly sophisticated technology can replace human labor with machines or robots, thereby reducing the need for workers. But technology can also create new jobs that require specialized skills, thereby increasing employment opportunities for those with the appropriate qualifications. Therefore, unemployment cannot be resolved permanently because there are always factors that can influence it.
Unemployment is structural
There is a mismatch between demand and supply of labor in the job market. Labor demand is influenced by factors such as type of business, location, qualification requirements, salary, etc. Labor supply is influenced by factors such as population, level of education, skills, motivation, mobility, etc. This mismatch can occur for various reasons, for example changes in people's consumption patterns, shifts in economic sectors, geographical differences, lack of job market information, or low quality of human resources. As a result, there are several groups of workers who experience a surplus (supply exceeds demand) or deficit (demand exceeds supply) in the labor market. To overcome this mismatch, efforts are needed such as improving the quality of education and training, adapting the curriculum to the needs of the world of work, providing job search assistance facilities, providing incentives for entrepreneurs who open new jobs, or empowering the informal sector and micro, small and medium enterprises. However, these efforts require a lot of time and money, so they cannot solve unemployment instantly.
Unemployment is natural
There is a minimum unemployment rate that cannot be eliminated due to movement of labor between jobs or locations. This natural unemployment is caused by factors such as differences in individual preferences for available jobs, a transition period or job search for those who have just graduated from school or experienced layoffs, seasons or business cycles that influence labor demand in the sector. certain conditions, or the existence of obstacles such as bureaucracy, regulation, or discrimination that hinder access to the job market. This natural unemployment is actually not dangerous for the economy because it shows the mobility and flexibility of the workforce. However, natural unemployment cannot be eliminated because there are always factors that cause changes in the job market.
From the description above, it can be concluded that unemployment is a complex and multidimensional phenomenon, which is influenced by various economic, social, political and cultural factors. Therefore, unemployment cannot be resolved completely, but can only be reduced by appropriate and integrated methods. Reducing unemployment is not only the responsibility of the government, but also society, the business world, educational institutions and all related parties.
Thus, unemployment is not a problem that can be solved completely, but can only be reduced with the right methods. Unemployment is a challenge that must be faced together by all elements of the nation, with a spirit of mutual cooperation and responsibility.
