Wednesday, July 5, 2017

The Problems and Definition of Labour Force

The Problems of Indonesia Labour Force and Labour

A demonstration explodes on a large scale when the government plans to revise the labour force regulation. As labors representative, a labour union refuses the Revision of Labour Force Regulation. It comes to occur as the regulation cannot protect the labour interest.

This case indicates how significant the problem of labour in the sector of economy. The problem does not only concern on labour and entrepreneurship's interest, but also on the government and people's interest. Therefore, it is important for you to learn the problem pertaining to the labour force. The problem of the labour comes as the rapid increase of the number of the labour force is not equal to the availability of sufficient field of work. Now, we will discuss about the problems of the labour force and the labour and their effects.

The Definition of Labour Force

The labour force is related closely to the number of population. The increase of population must be followed by the increase of the number of the labour force.
Population can be categorized based on the age as follows.
  • People refer to 0 - 14 years old is included as the non productive population population (under the age of work).
  • People refers to 15 - 54 years old is included as the productive population (on the age of work).
  • People refers to above 64 years old is included as the non productive population (above the age of work).

The productive population (in the age of 15 - 64 years old) can be arranged into two classes, those are the class of labour force, and the class of non labour force.

The class of labour force can be divided into four classes, those are full-time employment, open unemployment, under unemployment. and disguise unemployment.
a. The full-time employment is those who contribute their capability in a production activity.
b. The open unemployment are those who do not work at all, but they try to seek for it (they will get work any time).
c. Under unemployment are those who work but it is not in accordance with their skill or background of education. Furthermore, they do not employ their capability fully as the lack of the field of work.
Example:
  1. A scholar gets work but the work is not in accordance with his background of education.
  2. A farmer does not have anything to do anymore after planting rice plants. He waits only for the season to clear of weeds and to harvest the crops.
d. Disguise unemployment means a condition where a certain job is completed by excessive workers so that they cannot totally work.
Examples:
An area of rice field is carried out by five people, but it is hold by ten people. The excess of labour is five people and it is called by disguise unemployment.

Those who are not included as the labour force are those who includes in the age of work but do not work and do not seek for work. For examples, students, university student, and housewives.

The number of labour force always changes every year. It conforms to the change of the number of population and the change of population composition based on the age.

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