Unemployment and Unemployment Benefits

 Unemployment is the workforce that has not had the opportunity to work, but is looking for work or people who are not looking for work because they feel that it is impossible to get a job. For the unemployed, unemployment benefits are provided.

What is meant by unemployment?

Unemployment or unemployment is a term for the workforce who does not work at all, is looking for work, is waiting for the next job project, or someone who is trying to get a decent job. Unemployment is generally caused because the number of the labor force or job seekers is not proportional to the number of existing jobs that are able to absorb it.

What are the types of unemployment?

Based on the definition of unemployment above, unemployment is divided into 3 types, namely:

a) Open Unemployment

Open unemployment is a workforce that has no jobs at all. This unemployment occurs because the workforce has not got a job even though they have tried their best or because they are lazy to find work or lazy to work.

b) Disguised Unemployment

Disguised unemployment, namely unemployment that occurs because there are too many workers for one type of work, whereas reducing the workforce to a certain amount does not reduce the amount of production. Hidden unemployment can also occur because someone who works not in accordance with his talents and abilities ends up working not optimally.

Example: In a company there are 10 marketing personnel to handle the work, even though all the work can be done well with only 6 marketing personnel. As a result, these employees are not working optimally and for the company it is a waste.

c) Under Unemployment

Underemployment is unemployment that occurs because the workforce does not work optimally because there is no job for a while.

Example: A construction worker who has completed work on a project, is temporarily unemployed while waiting for the next project.

What is an unemployment benefit?

Unemployment benefit is the receipt of cash benefits for the unemployed for a certain period of time. This allowance is paid from funds originating from contributions from employers (companies), workers, and the government.

Unemployment benefits will help financial workers whose employment relationship has been terminated for a limited period of time while they are trying to find another job.

Is there a law that regulates unemployment benefits?

Unfortunately in Indonesia until now, there has been no regulation regarding unemployment benefits. As for that, however, the law regulates the existence of severance pay, reward pay, and compensation money for rights when a working relationship is terminated. Regulations regarding the calculation of severance pay, reward, and reimbursement are contained in article 156 of Law No.13 of 2003 concerning Manpower.