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1.

Introduction

In Indonesian today there are not a few people with income that is still below the
average, Indonesia is recorded as a developing country where the income of the
population per capita is still less than the actual needs of the comunity. Problems
will arise especially in the economic sector, problems that arise include
unemployment and poverty.

Unemployment is a person who does not work at all, is looking for work,
works less than two days a week, or someone who is trying to get a decent
job. (https://id.m.wikipedia.org/wiki/Pengangguran)

The type of unemployment consists of structural unemployment, frictional


unemployment, conjunctive unemployment. Unemployment is caused by several
factors, namely job seekers more than jobs, lack of skills, low education.

Unemployment is caused by a lack of jobs and inadequate human resources. This


unemployment problem has always been a problem that needs to be solved in the
Indonesian economy. The increasing population every year makes more and more
competitors who want jobs.

The purpose of this paper is to give information about the negative impact of the
unemployment toward indonesian economy.

2. Problem Formulation

What is the negative impact of unemployment toward indonesian economy?

3. Discussion

Unemployment is a person who does not work at all, is looking for work,
works less than two days a week, or someone who is trying to get a decent
job. (https://id.m.wikipedia.org/wiki/Pengangguran)

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The ultimate goal of a country's economic development is to increase community
prosperity and economic growth so that it is stable and in an ever-increasing state.
If the unemployment rate in a country is relatively high, this will hinder the
achievement of the economic development goals that have been dreamed of. This
is because unemployment has a negative impact on economic activity, as follows:

a. Causing people not to prosper. If the unemployment rate is high, most of


the community cannot fulfill their family's needs. Unemployment will
reduce an individual's potential income and the prosperity he feels will be
greatly reduced.

b. Reduced state income. In addition to having an impact on individuals, in


fact unemployment will also reduce national income from a country. A
high unemployment rate reduces the productivity (GDP) of a country so
that it will lower its rating in the eyes of the international.

c. Inhibiting economic growth. If the GDP of a country is said to be


shrinking, we can also conclude that the country cannot carry out
community development properly. Adequate employment will trigger the
community to increase work productivity, and this will affect the country's
development.

d. Investment in the country is weakening. The amount of unemployment


will reduce a country's national income. Foreign companies will first look
at how a country's national income level is. Low income countries will not
be honored by foreign company investors abroad.

e. Triggering poverty. This cannot be denied anymore, because


unemployment is the root of poverty. With all the dilemmas mentioned
above, unemployment will increase and many families will become
poorer. Many poor families will also make the country impoverished.

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4. Conclusion and Suggestion

Unemployment affects economic growth. Because unemployment has a direct


negative impact on the economy, causing a national growth and per capita income
to be hampered. But it does not rule out the possibility to reduce unemployment, if
we are serious and continue to try to overcome unemployment by looking at the
causes of unemployment. The type of unemployment consists of structural
unemployment, frictional unemployment, conjunctive unemployment.
Unemployment is caused by several factors, namely job seekers more than jobs,
lack of skills, low education.

the way the government does to reduce unemployment in Indonesia by opening


jobs, establishing job training centers, and providing capital loans.

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