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C. UNEMPLOYMENT

1. Concept Unemployment

Unemployment is a group of the labor force that is not working or looking

for work. Unemployment can occur because the supply of labor is greater
than the demand for labor. In other words, there is a surplus or excess supply

in the labor market.

Unemployment is a problem that often arises in developing countries. This is
due to the high number of people who are not matched by the availability of

jobs, thus triggering income inequality. To see the number of unemployed
people in Indonesia, you can look it up through the official BPS website.

2. Types of Unemployment

Unemployment is divided into several types, based on the length of time
worked and the cause. The types of unemployment are as follows:

a. Unemployment by Length of Time Employed

i. Open Unemployment

Open unemployment is the labor force that does not have a job at all. For
example, students who have just graduated from college and are not yet

working. According to BPS, open unemployment consists of a group of

people who:

1) unemployed and looking for work

2) unemployed and preparing for business
3) are unemployed and not looking for work because they think it is

impossible to get a job
4) already have a job but have not yet started working

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