Working Age Population and Unemployment

By Putu Nadiani Putri Utama ( 1506305130 )

4.3.1 Working Age Population and Labor Force

Working age population are all citizens, men - women who are ready to enter the work
force that is all the people who have passed compulsory education prescribed by the
state and not reaching the age of retirement. In Indonesia, the working age population
are those aged 15 years to 64 years. Crude activity rate is defined as the percentage of
the total population who are economically active and this depends on two aspects: sex
age structure of the population, and the percentage who work at each age group and
gender.

In the Western concept not everyone include working age labor force, those aged
working age but it is listed as a student / full-time student and all the housewives do not
enter the labor force, they are not considered labor force

Total population of working age (aged 15- 65 years old) for the years 2012-2016

From the data below it is clear that only about two-thirds of those aged 15-65 years in
the labor force. The rest are those that include working age but housewives and those
who are still enrolled in school or college, they are considered not to be looking for
work.

4.3.2 The Concept of Working and Unemployed

The International Labor Office (ILO) Provides three aspects to consider before say that
someone in the developing countries as a worker. Reviews These three aspects are:

1. Aspects of Earnings, jobs provide income to the work

 The central point of the income aspect in the work is the requirement that an earning
such income because of work, and not a matter of how much earnings.

2. The production aspects, the work provides output (production)

There is phrase "Do not pay attention to the results of your actions. That result will
follow and come to you " But certainly not the case with wage workers, because if
they do not think about the result they would be fired by his employer. Employment
is usually judged by the results of his work. Likewise in general act of economists,
judge the work of the results, not only for wage workers, but also for those who
work for themselves (self employed)

A very clear case for the latter were in the theory of disguised unemployment.
Disgused unemployment is unemployment that occur because of too many workers
for a single unit of work, but by reducing the workforce to certain amounts will not
reduce the amount of production. Unemployment is especially true in agriculture or
services. Examples of farm families with large family members working on a very
narrow area of land.

3. The Recognition Aspects, workers give recognition to someone that he is bound by

something that is worthy of life.

The work could be as a factor of self-esteem. For those who belong to a class of people
relaxing or from a rich family, the fact they do not work for the benefit of family
income is an honor. But for people - people who have to work in order to survive, the
lack of employment opportunities not only means losing the possibility of earning
income, but may also be a source of shame. Aspects of recognition of the work can
affect a person's choice to work, if that option is open for them.

4.3.3 Total labor force, employed and unemployed population who open

Unemployment are those who are looking for work, they are actively looking for work.
To show that they are actively looking for work they enroll at the office of labor
(employment office). How to calculate unemployment as practiced in Western
countries deemed not describe the actual situation, and therefore not used. There are
two reasons for it
a. Many job seekers in Indonesia are reluctant to register themselves with the reason
that the office never put job seekers.

b. Many job seekers registered with employment office did not delete / cross out his
name even though they have been working.

With these two reasons it seems quite reasonable for the government not to implement
just by calculating the open unemployed as applied in developed countries as well as
the government will be a shortage of funds, perhaps the number of registrants will be
aplenty. The way that chosen by the Indonesian government is to conduct a labor force
survey or Sakernas performed at a certain time. If the answer from the survey is not
working and actively looking for work, then the respondent entered as unemployment,
whereas if the answer obtained is not working and is not actively looking for work,
respondents were grouped into voluntary unemployment.

From the table shows the total labor force obtained from the working age population is
reduced by the number of housewives and those who is registered as a student / full-
time student, unemployed obtained through the labor force survey, and the number and
percentage of the working population were obtained by reducing the work force by the
number of open unemployment.

For the year 2016 the number of working people is 118.41 million. The number of
unemployment there was an increase in 2015, but dropped to 5.61 in August 2016.