One of the challenges for governments of countries with large populations and predominantly youth, such as Indonesia, is to expand employment opportunities in order to optimize the potential of these young people. However, labor market conditionslabor market) in the real world The number of available vacancies is often disproportionate to the number of potential employees. As a result, there are various types of unemployment including fake unemployment.

The Meaning of Disguised Unemployment

Underemployment It is a term used to refer to people who are employed but whose productivity is low for one reason or another. Another term for this type of unemployment is hidden unemployment. hidden unemployment hidden unemployment or lose a job.

In many other sources, underemployment can be defined as employees who work for a shorter period of time compared to the length of service imposed by the government.

in the case of Indonesia Working hours are determined by the government accordingly. Law No. 13 of 2003 and PP Issue 35 Year 2021 That’s 40 hours per week, divided into 8 hours per day for 5 days or 7 hours per day for 6 days. It can be said that the person is under-performing.

for following B.P.S.meaning by lose a job People who work less than 35 hours a week and are still looking for a job that works for them. Still according to the information dissemination institutions. If someone works under normal working hours but not looking for vacancies, etc. temporary staff can still be called lose a job.

Underemployment often occurs in developing countries with large working-age populations, such as Indonesia. This is due to the minimum number of vacancies. the difficulty of employment-based education, and much more. As a result, a large number of workers in this country (e.g. fresh graduate) that accept any job given regardless of potential as a future workforce.

cause of unemployment

The existence of hidden unemployment can be caused by many things. Among others are:

1. The inequality of labor market demand and supply

The supply of labor is people who are of working age and trying to find work. There is a demand for companies looking for new employees. With a population like Indonesia The supply of labor generally exceeds the demand. except in some branches

As a result, many workers are not recruited by the desired companies. As a result, he had to work part-time first or work in another company he didn’t like. Therefore, his productivity is low.

2. Education and work do not match.

One of the things that is considered to increase employee productivity is education. The assumption is that proper education will make employees more productive.

The low productivity of unemployed people may be due to the fact that the education they had taken did not match their current job. As a result, performance low or the company has to pay extra fees for training

An example is an ordinary high school graduate who is accepted to work in a glove factory. when she came in for the first time That woman had to be trained by her seniors before she could start working. Even though he started working It was possible that he could only make 10 gloves in a day. While the other employees made 20 gloves.

3. Minimum number of operators

inequality in labor market It may also be caused by the minimum number of entrepreneurs who dare to apply for jobs to support domestic workers. The small number of entrepreneurs may be caused by many reasons, such as lack of funding sources, lack of skills, etc.

In fact, the presence of entrepreneurs in the country, both in the form of MSMEs and in the establishment of startups, is crucial to absorbing the supply of workers in this country. Not only that, their presence can also drive the country’s economy.

4. Lack of job vacancies

One of the reasons why many people choose jobs that do not match their potential. This is due to the lack of information about available vacancies. Especially in second-class and rural areas.

As simple as it sounds, this information gap is something governments must address if they are to reduce the economic disparity between urban and rural areas.

Examples of Underemployment

  1. For whatever reason, a legal scholar was asked to return to his home in the village. Because there are no vacancies about the legal world in the village. The scholar then accepted a job as an English teacher. Although he has good knowledge of English. But his expertise remains in the world of law. And he only has limited teaching skills. As a result, production levels are low or not productive at all.
  2. An economics scholar moves off the island to accompany her husband. as there are no vacancies in his new residence that match his educational background. So he worked part-time as a translator for a while.
  3. A college student works as a waitress at a fast food restaurant. Considering he only works 4 hours a day or 20 hours a week. To be honest, it is voluntary unemployment or temporary employees (temporary staff).

Negative Effects of Low Employment

fake unemployment, especially not temporary staff and still in school age can have the same impact as overt unemployment (unemployment) is decreasing income disposable And people’s purchasing power is low. In addition, prolonged underemployment can also hinder the careers of young people.

Because the new generation already works lower than the ability, then must practice the skill to be sharp again in order to be able to work in real work according to expertise

However, use voluntary unemploymentlike temporary staffApprentices and freelancers should also be properly regulated. Because don’t rule out companies exploiting their energies and minds.

For example, providing the same number of jobs with full-time workers but paying 50% less wages, or increasing the number of interns and part-time workers compared to full-time employment. Of course for cost reasons.

How to overcome disguised unemployment

1. Expansion of vacancies information distribution

The first way to deal with low employment is to expand the distribution of job placement information to regions and villages. The goal is to make workers living in the area more aware of job opportunities.

Governments, universities or companies can do this in a number of ways, for example, holding a quarterly or even monthly fair. Dissemination of job information on the company’s official website and manpower office to improve the quality of the Internet network in relevant areas. Because it is undeniable that the internet can help expand job information.

2. Improve law enforcement

Increased law enforcement is aimed at preventing exploitation. voluntary unemploymentlike temporary staff, interns and freelancers who work less than 40 hours per week with the goal that lose a job In addition to gaining experience They are also paid according to the hours worked and effort.

3. Increasing industrial cooperation

Cooperation between companies and schools Both secondary schools and tertiary institutions need further improvements to enhance the labor market in Indonesia. This efficiency can only be achieved if schools and universities are able to recruit prospective staff according to the company’s needs. So that the company doesn’t have to waste money and effort to find new workers anymore.

This efficiency can only be achieved with close cooperation between scholars and practitioners. Of course, with the support of the government as a policy maker. Unfortunately, until now this industrial cooperation is carried out only by prestigious schools in the national capital and provincial capital. Therefore, labor is not evenly distributed across the region.

4. Increase the number of operators

There are several ways governments can do this. First, governments and campuses. Various programs can be organized, such as funding to support entrepreneurial ideas. Student Entrepreneurship Mentoring business plan competition Leadership Training and more

Second, governments can also support the growth of MSMEs by developing a microfinance ecosystem that supports more small and medium enterprises. The hope is that, with additional funding and job training, these MSMEs can grow their businesses. Therefore, recruiting new employees

Third, governments can aid the development of existing startups by facilitating access to funding for “senior” tech companies, facilitating access to funding for banks. retail investors and co-investors and building a conducive startup ecosystem, just like MSMEs. The hope is that the bigger the startup, the better.


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