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ACTION PLAN

By

MUHAMAD IQBAL
(SOUTHEAST SULAWESI)

Unemployment is about people who want paid work, but dont have it. So it represents

hopes and plans that are unfulfilled because there is not enough money in the household to pay

for them, and ambitions that go unrealised because people cannot utilise their skills and talents.

For young people, emerging into the labour market from education, the experience of hopes

being dashed can affect their prospects for the rest of their lives. Young people facing

unempoloyment today are undertaking their job search in aparticularly aparticularly

challenging context, and are therefore more likely to face unemployment than if they had grown

up into an expanding economy. Starting to enter the labour market in a recession is a piece of

random bad luck. Expectations, aspirations and plans formed in better times are postponed,

perhaps indefinitely.

Young Southeast Sulawesi are enduring staggeringly high rates of joblessness. The

official unemployment rate for 16 to 24 year olds is 14.5 percent, and has been in the double-

digits for seven straight years. Over three million young people are unemployed, and many

more have dropped out of the labor market entirely. While the unemployment rate for young

workers has long been substantially higher than that of older workers, the severe job losses and

anemic labor market recovery from the Great Recession have left millions of young workers

in a particularly tough spot. A quarter of the job losses for young workers came after the Great

Recession was officially over. Moreover, the rising number of young people connected to

neither education nor the labor market is of particular concern. Nearly 15 percent of 16 to 24

year olds, are neither working nor in school. The recession has made the crucial transition from
school to work particularly difficult. Youth unemployment is one of the most serious economic

and social problems facing the Southeast Sulawesi today.

Todays labor market failures have long-term consequences for unemployed youth. A

growing academic literature on the scarring effects of launching a career without a job

suggests that young people who endure early spells of unemployment are likely to have lower

wages and greater odds of future unemployment than those who dont. Studies indicate a 10 to

15 percent wage scar from early unemployment, and those earnings losses persist for at least

20 years. These findings hold for individuals with a college degree, and the prognosis for

individuals without a college degree is grimmer still.

The basic principle should apply to the services that provide support for young people,

which should ensure that support for seeking work be provided to those in learning, and vice

versa. This should bring together the job-related support provided through Jobcentre Plus and

what remains of the Careers Service for those youth unempolyement. So the best way to reduce

of youth unemployement on Southeast Sulawesi is Rumah Kreatif. Rumah kretaif will learn to

them how to find and increase their skill. Such as the youth will increase their skill about

otomotif so they will learn otomotif from a expert of otomatif and so on. The action will

increase the skill of the youth unempolyemnt on southeast sulawesi. If the skills serviced

existed, arguably young people would have been more likely to engage with a service offering

an additional financial support and a push towards both work and learning.

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