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This paper has four objectives. The first one is to illustrate, the umber of young
unemployment based on statistic data in Indonesia. The second objective is to show that social
factor impact of young unemployment. The third objective explain about economy factor that
impact unemployment in Indonesia and the last objective show us about the impact developing
of technology.
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.
High youth unemployment is one of the threats that is being faced by Indonesia.
Indonesia has a young population as roughly half of the total population is below thirty years of
age. This means that the country contains a potentially large workforce. But this demographic
bonus can turn into a demographic disaster if this workforce cannot be absorbed by employment
Approximately 20 percent of Indonesia's young men and one third of the young women
are unemployed not go to school. The total number of young men aged 15 to 24 in Indonesia is
estimated at 20.5 million, while the total number of young women aged 15 to 24 is 20.2 million.
This current condition as the high level of youth unemployment can lead to social unrest, that
impact negatively on the country's future economic prospects and limit the productive potential
of Indonesia as a whole.

Unemployment Rate in Indonesia decreased to 5.50 percent in the first quarter of 2016
from 6.18 percent in the third quarter of 2015. Unemployment Rate in Indonesia averaged 6.13
percent from 1982 until 2016, reaching an all time high of 11.24 percent in the third quarter of
2005 and a record low of 2 percent in the fourth quarter of 1983. Unemployment Rate in
Indonesia is reported by the Statistics Indonesia.

Source: http://www.tradingeconomics.com/indonesia/unemployment-rate ,access on July, 4th ,


The growing number of unemployed young people will have an impact on social
and economic issues that can be a challenge the progress of a country. In the long term,
unemployment will have a direct impact on the lives of individuals, families, and
communities. When an individual does not work, then the abilities and skills gained
either through formal learning, non-formal and informal but un useful , such conditions
will cause depreciation of human capital or human capital, similarly, at a time when the
individual does not work then the social networks in the work also stalled and cause a
decline in social capital social capital or to obtain admission opportunities in the job
market. Consequently, the longer an individual is not working then the harder it is to get a
new job and can cause the soul and pressure affect the mental and physical health, family

dynamics, and for her children's well-being for young people who have been married
(Nichols et al, 2013).
Unemployed has a connecting factor like social, economy and technology. The factor that
influence unemployment impact by the economy growth are employment that occur due to
changes in the structure and economic activities as a result of economic development. The other
factor of economy unemployment that occur due to changes in the level of the economy. for
example, shareholding arrangements should reduce production so most labor dismissed.
unemployment that occur when the economy reaches the level of the use of filled labor (full
employment), where labor tried to change jobs or shift labor or crashing while to demand wage
Unemployed effect by the social factor like :
1. The magnitude of the work force is not balanced with employment

imbalance occurs when the amount of the labor force is larger than the
available employment opportunities. The reverse condition is very rare.
And the
2. Culture of picky work, basically every person would like to work in
accordance with the educational background. And again coupled with the
nature of the prestige then it's no wonder most found in Indonesia is not
veiled, but unemployment open dominated by intellectuals (high
3. The provision and utilization of Labor between regions is not balanced The
number of labor force in one area might be greater than the chance of
work, while in other areas the opposite circumstance can occur. These
circumstances may result in the transfer of labor from one area to another,
even from one country to another.

For decades, technological movements have benefitted individuals and economies

across the globe. One of the effects of technological advancement is the manner by
which it continues to modify the labor market. Questions can be raised as to whether
technology actually increases employment rates or if it dampens employment
opportunities for the present and future generations.
It is widely stated that low-skilled workers are the most harmed by technological
developments, as robots and computing advancements regularly replace workers
undertaking repetitive tasks. Unemployment is on the rise within sectors that are mainly
based around administration, service work and even within construction. However, at the
same time employment opportunities are on the surge for labor whose skills are
complementary to new technology, for instance workers skilled and educated in IT and
engineering related disciplines. In terms of employment, technology is benefitting those
with greater analytical, problem solving and creative skills.


Unemployment is an important factor of developing national growth for long and short
term. Unemployment should be fixed immediately, so Indonesia economy growth can have a
better performance and able to compete with other countries. The Government expected the
unemployment can resolve with offering jobs or community development programs.
1. The Government should monitoring the KB program also the resettlement business.
2. The Government should be able to initiate and cooperate with the private sector and the
community can make in unemployment.
3. Held dissemination in the community of the independent business.