Unemployment Problem and Understanding Market
Unemployment and understanding
In macro-economic indicators there are three things in particular that the subject
macro-economic problems. First is the problem of economic growth.
Economic growth can be categorized as good if positive growth figures
rather than negative. Second is the problem of inflation. Inflation is an indicator
movement of prices of goods and services generally, which simultaneously
also associated with purchasing power. Inflation reflects the stability
price, the lower the value of an inflation means that the greater presence
the tendency towards price stability. But the inflation problem is not only
associated with the skyrocketing prices of goods and services. Inflation also
is closely associated with the purchasing power or purchasing power of masyaraka.
While the purchasing power of the community relies heavily on real wages. Inflation
actually not too problematic if the price increase coupled with
increase in real wages. The third problem is unemployment. Indeed the problem
unemployment has become such a frightening specter, especially in
developing countries like Indonesia. Developing countries often
faced with large unemployment figures due to the narrowness of the field
jobs and the size of the population. Narrowness of the field work
because of factors due to the scarcity of capital to invest. Problem
unemployment itself is not only happening in developing countries
but also experienced by developed countries. But the problem of unemployment in
developed countries much more easily resolved than in countries
evolved because it only related to the ebb and flow of business cycles and
rather than because of the scarcity of investment, the problem of population explosion,
political or social problems in the country. Through this article
I tried to raise the issue of unemployment with all its effects
in Indonesia, which according to my observation has been increasingly concerned
especially when our country is affected by the economic crisis since
What is unemployment? Unemployment is a condition where people do not
can work, because of the unavailability of jobs. There are various
types of unemployment, for example, technological unemployment, unemployment
frictional and structural unemployment. High unemployment,
problem of population explosion, the unequal distribution of income, and
various other problems in our country became one of the main factors
the low standard of living of the population in our country. However, the
The main manifestation of both factors causing the low standard of living in
developing countries is the limited absorption of resources, including
human resources. Compared with developed countries,
resource utilization by developing countries relative
lower than in developed countries due to poor
efficiency and effectiveness of the use of resources both natural resources
and human resources. Two main causes of low utilization
human resource management is that the unemployment rate and level
disguised unemployment is too high and continue to soar.
Full or open unemployment that is composed of people who
actually able and willing to work, but will not get the field
work altogether. Based on data from the Labor Department in 1997, the number
Open unemployment has reached only about 10% of about 90 million
existing labor force in Indonesia, and even this amount did not include
disguised unemployment. If the percentage of total unemployment
involves the amount of disguised unemployment and open to views
the numbers, then the score had reached 40% of the 90 million labor force
means the number of unemployed reached about 36 million people. Now
underemployment are the people who are unemployed because of work
below its optimal capacity. The hidden unemployed are
people who work under 35 hours in one week. If we
assume that the economic crisis so far has not be resolved
then the numbers were certainly will be more jumps.
Due to the financial crisis which devastated the national economy,
many entrepreneurs who went bankrupt because of heavily indebted banks or debt
to a business associate. So many workers or factory workers who are forced to
laid off by the company where he worked in the framework of reduction
the amount of cost that is used to pay salaries of its workers. This
that was one that triggers the explosion of unemployment
to higher unemployment in a relatively short time.
Initial explosion of unemployment could have been known since about the year 1997
end or early 1998. When the great monetary crisis hit Asia
Southeast Asia in particular promoting the creation of tight liquidity as
reaction to monetary flows. In Indonesia, the policy of liquidation of the 16
end of November 1997 alone the bank has been able to create about 8 000 employees
unemployed. And in a time interval that is not relatively long time, 7196 workers
than 10 companies already in the termination of their factories in West Java,
Jakarta, Yogyakarta, and South Sumatra, according to data at the end
December 1997. Pengangguranpun explosions continued in the year 1998, where
approximately 1.4 million new unemployment will occur. With the economy
which only grew by about 3.5 to 4%, the labor could be absorbed
Around 1.3 million people from the additional labor force of about 2.7 million people.
The remainder had additional unemployment. Total unemployment
happen will exceed 10 million people. Based on experience, if we
refers to the data in the year 1996 the economic growth of 3.5
up to 4% has not been adequate, it should be an ideal solution for economic growth
Indonesia is a developing country range above 6%.
Based on the data throughout the year in 1996, the economy can absorb only
85.7 million of the total labor force 90.1 million people. Year 1996
the economy can absorb the amount of labor in a relatively large number
because the national economy to grow at 7.98 percent. Years 1997 and 1998,
economic growth is not as bright as can be ascertained in 1996. In
1998 economic crisis gets worse because many parts of Indonesia
buffeted by the dry season, the inflation that occurred in many areas, the monetary crisis
domestically and in countries like fellow ASEAN trading partners,
South Korea and Japan will be very influential. If we are still the based with
Assuming the above conditions, then the explosion of unemployment is expected to
continued throughout the years to come.
Indeed when we stepped on the year 2000, total unemployment in the year 2000
have decreased compared to 1999. Along with economic growth
year 2000 which increased to 4.8 percent. Unemployment in 1999
6.01 initially also decreased to 5.87 million people. Medium unemployment
or disguised unemployment also declined from 31.7 million to 30.1 million
people in 2000. Total unemployment currently achieve approximately 35.97
million people, but the government is still focusing on reduction of unemployment
was at 16.48 million people. Total unemployment in this time that the idea in 2001
reached 35.97 million people are estimated to be increased if the recovery
economy is not immediately going well. Because of this, the government
need to make extraordinary efforts to seek foreign investors to
invest here so that new jobs can be created
to be absorbing as much manpower.
Based on this calculation, so when the economy of our country
requires a minimum of 6 percent economic growth, although ideally above 6
percent, so it can accommodate at least 2.4 million new labor force.
Because of one percent economic growth could absorb 400 thousand sektiar
workforce. This was also coupled with the opportunities of overseas employment
can accommodate an average of 500 thousand labor force every year. For
spur rapid economic growth will not help our country
forced to attract foreign investment because it is very difficult to
expect a lot of investment in the country since it is precisely in the
a land of big businessmen who owe a lot to go abroad. This
got worse since the debt entrepreneurs (private sector) and government
in the form of dollars. While the current exchange rate is so low
(Undervalue) against the dollar.
Problem of Unemployment and the Social Crisis
If the problem of unemployment is so complicated it is allowed to drag on
seems likely to encourage a social crisis. One
social crisis marked by rising crime rates, high
juvenile delinquency rates, skyrocketing number of street children or thugs, and
magnitude likely to occur a variety of social violence continues
haunt our society.
For many people, get a job like to get price
self. Losing a job can be considered loss of self esteem. Although
not everyone’s choice, at this difficult time of unemployment can all
regarded as a fate. Someone could have been terminated from employment because
company went bankrupt. Whereas in the community, millions of unemployed people also queued
energy waiting utilized.
The magnitude of unemployment in Indonesia will gradually lead
many social problems that will become a social crisis, because
many people are frustrated facing his fate. Unemployment happens
Just do not overwrite new job seekers who left school, but
also happen to parents who lose their jobs because of the office and factory
cap. Indicators of social problems can be seen from so many children
who started down the road. They became buskers, hawkers and
perpetrators of such crimes. They are a lost generation
opportunity to obtain a good education and coaching.
One of the factors that lead to high unemployment in the country
we are too much labor is directed to the formal sector
so that when they lose their jobs in the formal sector, their
throe and can not seek to create their own jobs at
informal sector. Precisely those people who are less educated can do
innovation to create employment, either as a jockey is riding in a car or
jockey umbrella if it rains. Also the street vendors and pedicab drivers,
even the demo just paid. The concern is that if many
the unemployed who find a way out by making a living that do not
kosher. Many of those who become pickpockets, sex workers, thieves,
thugs, drug sellers, and so forth. Even those who are not little
paid for or anarchist riot in the interest of one political
certain groups are still closely associated with New Order frontman. There is
also incorporating themselves into members of the army of jihad, which is sent to
Ambon, on the pretext of defending religion. Yet there they were just so vandals
yang hooked looting, raping, and killing people who do not Maluku
sinful. This is what must be considered by the government if the crisis
social not want to continue.
Unemployment Issues and Education
Intellectual unemployment in Indonesia is increasing, and increasingly tend to
close to a worrying point. It is estimated that the unemployment rate
intellectuals who in 1995 reached 12.36 percent, in the year 1995
expected to increase to 18.55 percent, and in the year 2003
increased to 24.5 percent. Unemployment is not an intellectual
irrespective of the education world problems that are not able to produce
qualified manpower as demanded by the job market so often
educated workforce we can not compete with foreign labor.
This phenomenon being faced by our nation where the power
many well-educated labor that is unemployed even though they actually
Although there is increasing tendency of educated unemployment, but efforts
expansion of educational opportunities of secondary education until education
height should not be stopped. But it must be equitable education
done without sacrificing the quality of education itself. Therefore the
one of the weaknesses of our education system is the difficulty of providing
education is really a person can cultivate professionalism in
career or work. Today we put too much emphasis on education
In terms of theory and practice instead. Education is often delivered in
form a monotone that makes the students become bored. In
developed countries, pendidikkan in the form of more practice is given in
larger portion. At thence, ways of learning and giving
pendidikkan given in the form of the more interesting and creative. In countries
we, at this time there is a tendency that students only have a habit
just to memorize the lessons pertaining to the social sciences,
language, and history or simply accept the various theories, but unfortunately the
students do not have the ability to dig more insight into the views
broad and intelligent in understanding and analyzing a problem. While for
natural science students tend to only be given practice questions
which tend to only train speed in thinking to find
answers and sharpen reasoning or train instead of creativity in
thinking. Examples include someone who is good at doing
mathematical problems not because of ingenuity in performing analysis
on the matter or cleverness in making the roads but because of the calculation
he’s already memorized the type of issue. Often can become merely
could do because by using the formula but do not know the origin
origin of these formulas. The fact is what causes the human resources
we miss much with the existing human resources in countries
forward. We’re only good in theory but fails in practice and in
professionalism of the work. The low quality of well-educated workforce
we are because we too are looking at the title without
serious fix the quality of our abilities in the field.
So that was because of this it is the educated workforce to compete
with foreign workers in an effort to find employment.
If we look from an economic standpoint, the unemployed labor
educated tend to increase when people undergo a process
modernization and industrialization. In the process of change that occurred
inter shifting labor, ie, from subsystems to the economic sector
renumeratif economic sectors. After re-established, unemployment will
tend to be low again. Industrialization process not only occurs in
a point in time but is an ongoing process.
Economic shifts in the process of industrialization is not lasted only
agriculture to industry, but also continue to occur from the tech industry
inferior to the technology, and further toward information-based industries
and intellectuality. At this stage, he added, those changes continue
take place from time to time which resulted in labor should
constantly adapt to technological changes.
As a result, unemployment is a normal condition in developed countries
that technology is constantly changing. Educated unemployment problem in Indonesia,
he said, have started sticking around since the 1980s when Indonesia
began to enter the industrial era. In the 1970s the government made
massive investment in sectors related to the needs of
basis, such as agriculture and basic education. Entering the 1980s,
Elementary education output in large numbers have been encouraging growth
heavily on secondary and higher education. However, problems
education becomes a dilemma, on the one hand education is considered very slow
change the structure of the workforce because the workforce educated graduates
new higher education 3.05 percent of the national workforce. However, in
other hand, education is also blamed for issuing graduates
higher education is too much that it becomes unemployed.
One of the causes of unemployment among university graduates is
because the quality of higher education in Indonesia is still low. As a result
dihasilkanpun low quality graduates and not suitable to
demands and needs of the community. Educated unemployment can only
low level of efficiency is seen as an external educational system. Yet
if you look at it further, from the demand side of labor, unemployment
educated can be viewed as the inability of the economy and job market
to absorb the educated labor that appear simultaneously in the number
which continues to accumulate.
Problem of Unemployment and Inflation
After the last ten years the national inflation rate could
maintained below the ten percent, but in 1997 the rate
Inflation finally broke the double digit, ie 11.05 per cent. Inflation rate
year 1997 was far higher than inflation in 1996 is 6.47
percent. That happened, in addition because of drought, among others, also
monetary crisis which eventually widened so the economic crisis. Inflation
months of December 1997 totaled 2.04 percent. With the inflation rate 11.05
percent, well placed Indonesia as a country that has figures
The highest inflation rate in ASEAN, at least in the past three years.
The high inflation rate due to unbalance between supply and demand
supply of goods and services.
This proves the high rate of inflation in our country more
affected the real sector, not the monetary sector. If we take
conclusion about the problem of inflation in Indonesia that turned out to inflation
not solely determined monetary factors, but also physical factors. There are four
factors that determine the rate of inflation. First, money is good money in circulation
cash and demand deposits. Second, the comparison between physical and monetary sector
goods available. Third, bank interest rates also affect
the rate of inflation. Interest rates in Indonesia, including higher than
countries in the region. Fourth, the rate of inflation is determined to physical factors
infrastructure. Inflasipun skyrocketing due to be triggered by government policies
interest subsidy so that electricity and fuel prices rise. Fuel price hike
This has ramped inflation rate in June 2001 to 1.67 percent.
This impact is still felt until July 2001 that will provide
inflation between 0.3 to 1 percent contribution. Also caused a domino effect
still be a trigger other price increases. It is estimated that inflation this year
translucent double digits. Policy of fuel price hike as of June 15, 2001, became
trigger price increases in other basic needs. The fuel price hike
quite burdensome to the community because it can lead to lower layers
multiplier effect, to increase the price of other goods in
production and distribution processes using the fuel.
The high inflation rate will further reduce purchasing power.
To be able to survive at the level of purchasing power as before, the workers
must obtain at least at the level of salary inflation. If not,
people are no longer able to buy goods that are produced. If
manufactured goods that no one bought it will be much
company reduced its profit. If corporate profits
reduced the company will strive to reduce cost as
a consequence of the reduction in corporate profits. This is what will
encourage companies to reduce the number of employees / workers laid off by
workers. One of the way out of this crisis is to stabilize
rupiah. Improvement in the exchange rate not only depends on the money
suplly from the IMF, but also foreign investors (global investment society)
capital flows into Indonesia (capital inflow). Because of this
then controlling inflation is important in order to control
DEFINITION, CONCEPT, DEFINITION OF MARKETING
A. Understanding Marketing
There are several definitions of marketing are:
a. Philip Kotler (Marketing) Marketing is human activity that is directed to meet the needs and wants through exchange processes.
b. According to Philip Kotler and Amstrong marketing is a social and managerial process that makes individuals and groups obtain what they need and want through creating and exchanging products and value reciprocity with others.
c. Marketing is a total system of business activities designed to plan, determine pricing, promotion and distribution of goods which can satisfy the desire and achieve the target market and company goals.
d. According to Stanton W marketing is a whole system of activities that are intended for planning, pricing, promoting and distributing goods and services that can satisfy the needs of buyers and potential buyers.
B. Marketing Concept
Core concepts of marketing meluputi: needs, wants, demands, manufacturing, utility, value and satisfaction; exchanges, transactions and market relations, marketing and markets. We can distinguish between needs, wants and demands. Requirement is a condition he felt a certain lack of basic satisfaction. Desire is the will of the strong will satisfy specific to the needs of the more profound. While demand is the desire for specific products backed with the ability and willingness to buy.
C. Marketing Management
Marketing management comes from two words namely management and marketing. According to Kotler and Armstrong is a marketing analysis, planning, implementation, and control of programs designed to create, build and maintain beneficial exchanges with target buyers to achieve its goals. While the management is the process of planning (Planning), organization (organizing) the mobilization (Actuating) and supervision.
Thus can be interpreted that as a Marketing Management is the analysis, planning, implementation, and control program designed to create, build and maintain beneficial exchanges with target markets in order to achieve the goal – the goal of the organization.
From the description above we can conclude that marketing management is as planned activities, and diorganisasiknan which includes the distribution of goods, pricing and conducted surveillance against the policies that have been made which aim to secure a place in the market so that the main purpose of marketing can be achieved.
Kinds MARKETING CONCEPT
The marketing concept says that the key to achieving organizational goals consists of determining the needs and wants of target markets and to provide the expected satisfactions more effectively and efficiently than its competitors.
Marketing concept that has been expressed in various ways:
1. Discover and fulfill the market demand.
2. Make what can be sold and do not try to sell what can be made.
3. Love your customers, not your product.
4. Do it your way (Burger King)
5. You decide (United Airlines)
6. Do everything within the limits of the ability to appreciate the customers money is loaded with value, quality and satisfaction (JC. Penney).
In marketing there are six concepts that are basic marketing activities of an organization that is: the production concept, product concept, the concept of sales, marketing concepts, the concept of social marketing, and global marketing concept.
1. Production concept
Production concept believes that consumers will love the products that are available everywhere and cheap. This concept-oriented production by mobilizing all efforts to achieve high-efficiency products and extensive distribution. Here the task of management is to produce as many goods as possible, because consumers are assumed to receive a widely available product with their purchasing power.
2. Product concept
Product concept that consumers will love the products that offer quality, performance and characteristics best. Management task here is to make quality products, because consumers are considered high-quality product like in appearance with the characteristics – the best properties
3. Concept selling
The concept of the sale argue that consumers, with the left just like that, organizations must implement sales and promotional efforts aggressively.
4. The marketing concept
The marketing concept says that kunsi for achieving organizational goals consists of determining the needs and wants of target markets and to provide the expected satisfaction more effectively and efficiently than its competitors.
5. The concept of social marketing
The concept of social marketing organization believes that the task is to determine the needs, desires and interests of target markets and to give satisfaction expected in a more effective and efficient competitors with fixed daripasda preserve or enhance consumer welfare and the public.
6. Global Marketing Concepts
On the concept of global marketing, executive manager seeks to understand all the factors that affect the marketing environment through robust strategic management. the end goal is to strive to fulfill the wishes of all parties involved in the company.
A. Understanding Marketing System
System is a group of items or part-bagia that are interconnected and interrelated permanently integrated in forming a unity. So can mean marketing system is a collection of institutions that perform marketing tasks of goods, services, ideas, people, and environmental factors that influence and shape each other and affect the company’s relationship with the market ..
In marketing the group items that are interconnected and interrelated that includes:
1. Joint marketing organizations that carry out the work.
2. Products, services, ideas or people that are marketed.
3. Target market.
4. Intermediaries (retailers, wholesalers, transportation agencies, financial institutions).
5. Environmental constraints (environmental constraints).
The most simple marketing system consists of two interrelated elements, namely the marketing organization and the target pasarnmya. The elements in a marketing system similar to the existing elements on the stereo radio system. Working separately, but at times appropriately met.
B. Macam – Macam Marketing System
a. Marketing system with a vertical channel
In this system, manufacturers, wholesalers, and retailers to act in a coherent.
Controlling the behavior of the channel §
To prevent disputes among members of the channel §
b. Marketing system with a horizontal channel
In this system, there is a cooperation between two or more companies are joining to take advantage of marketing opportunities that arise.
c. Marketing system with multiple channels
In this system some style with the settings of retailing and distribution management functions are combined, then from the back of centrally led.
C. An Environmental Marketing System
a. External macro environment.
The macro environment is:
a. Demographic (population).
b. Economic conditions.
d. Social and cultural strength.
e. Political power and legal.
b. External micro environment
a. Market (market)
c. Brokers (marketing intermediaries)
c. Non-environment – Marketing Intern
The strength of non – is the location of other marketing companies, toughness part of research and development. Internal strengths are fused (interest) in the organization and controlled by management.
A. Understanding Marketing Strategy
The marketing strategy is making the decisions about the cost of marketing, marketing mix, marketing allocation in relation to the expected environmental conditions and competitive conditions. In marketing strategy, there are three main factors that cause a change in marketing strategy are:
1. Product life cycle
Strategies must be adapted to the life cycle stages, namely the introduction stage, growth stage, maturity stage and decline stage.
2. Company’s competitive position in the market
Marketing strategies should be tailored to the company’s position in the competition, whether to lead, challenge, follow or just take a small portion of the market.
3. The economic situation
Marketing strategies should be tailored to the economic situation and outlook in the future, whether the economy was in a situation affluent or high inflation.
B. Various Kinds of Marketing Strategy
kinds of marketing strategies including:
1. Strategy for primary needs
Marketing strategies for designing primers, kebutuah:
1. Increase the number of users and
2. Increasing the number of buyers.
2. Selective Needs Strategy
a. Keeping customers eg:
1. Maintaining customer satisfaction;
2. Simplify the purchasing process;
3. Reduces the attractiveness or ahead to switch brands;
b. Solicit customers (Acquistion Strategier)
1. Taking the opposite position (head – to heas positioning)
2. Taking a different position (differentiated positin)
More clearly, marketing strategies can be divided into four types:
1. Stimulate primary demand by increasing the number of users.
2. Stimulate primary demand by increasing the level of purchases.
3. Selectively stimulate demand and keep customers.
4. Kebutuhgan stimulate selectively recruit new customers.
C. Market Segmentation
Market segmentation is the activity of dividing a market into groups of different buyers who have the needs, characteristics or behavior that may require different products or different marketing mix. Or market segmentation can be understood market segmentation is the process of identifying and analyzing the buyers in the product market, menganalisia difference between buyers in the market.
1. Basics in the determination of Market Segmentation
In the determination of market segmentation there are some things which it is based, namely:
1. Basic – basic market segmentation in consumer markets
a. Geography variables, including: area, area size, city size, climate and density.
b. Demographic variables, including: age, family, life cycle, income, education, etc.
c. Psychological variables, including: social class, lifestyle, and personality.
d. Buyer behavior variables, including: the benefits sought, user status, usage rate, loyalty status and attitudes in the product.
2. Basic – basic segmentation on industrial markets
a. Stage 1: Define the macro segmentation, ie end-user markets, geographic location, and number of subscriptions.
b. Stage 2: the attitude toward the seller, the feature – the personality traits, product quality and customer.
2. Market segmentation Terms
There are several requirements that an effective segmentation, namely:
a. Can be measured
c. Big enough or profitable enough
e. Can be implemented
3. Level Market Segmentation
Because the purchases have unique needs and desires. Every buyer, the potential to become a separate market. Therefore, market segmentation can be built on several different levels.