What is Employment? Definition and Types of Employment

what is employment

Employment is a very common term among Indonesians, particularly in recent years. Even yet, many of them still do not completely comprehend labor law and its context.

Simply defined, employment theory is concerned with employees both before and after their job ends. All of these labor regulations are governed by the Indonesian government. As a result, employees and businesses cannot be treated unjustly.

Take a look at Clockster’s review for more detailed information on labor rules. Don’t miss it!

What is Employment?

What is employment? Employment is a relationship that is closely linked to human resources. Given that human resources is the most important aspect in determining whether or not the employment system will function well.

What is employment according to the Indonesian Law? According to the legislation No. 13 of 2003, employment is defined as persons who are able to do work by creating products or services in order to meet their own or the society’s requirements.

So, what does employment mean? Employment means that workers or laborers get pay or compensation in any form, according to existing rules.

Definition on What is Employment According to Experts

Experts explain their concept of employment theory not only via laws, but also through their own perspectives. According to the experts, employment is:

  • According to Subri what employment is labor as a population between the ages of 15 and 64 who is requested to engage in the production of products or services.
  • According to Dr. A. Hamzah, SH, what is employment is individuals who work within or outside the employment relations.
  • According to Sumarsono, the term of employment consists of persons who are willing and able to work and do labor activities for themselves or others.
  • According to Dr. Payaman J. Simanjuntak, what is employment is that the workforce consists of citizens who have worked or are now working and are seeking a job while engaging in other activities such as taking care of the house or going to school.

Based on the definitions on what is employment above, it is possible to infer what does employment mean is a population aged 15 to 64 years who offer their power and are willing to work while engaging in other activities.

They can do the work, both inside and outside of the workplace, and they must use their energy and stamina in order to complete the production process.

Types of Labor

Labor is the most essential and influential aspect in the production line. Labor is classified into many kinds depending on the nature of the task. What are the distinctions? Below are the explanation:

Physical Labor

For individuals who rely on physical labor in the manufacturing process, such as mechanics and drivers.

Spiritual Labor

For individuals who think in terms of ideas or productive ideas. This labor is commonly referred to as consultants, managers, and directors.

Turns out, it is not only seen from the types of jobs but also from expertise:

Skilled Labor

This includes workers who are required to have proficiency in specific fields as a result of the education they acquire. Lawyers, judges, physicians, teachers, accountants, etc.

Trained Labor

This includes workers who require more work experience, such as tailors, painters, chefs, and others.

Unskilled / Untrained Labor

This includes workers who are solely reliant on their labor and have no prior experience or education, such as drivers, housemaids, and construction workers.

Employment Problems that Often Appears

What is employment? Employment boosts the economy of the country. Therefore, it is required for a country to have high quality human resources in order to provide productive employment and, eventually, improve the country’s economy.

Unfortunately, that is not the case in the actual workplace. There are still a lot of issues that arise on a regular basis, such as the ones listed below. These are some examples of Indonesian employment issues.

Large Number of Unemployment

The issue of high unemployment continues to be a concern. Unfortunately, the workers’ productivity and competitiveness, however, are both low. BPS data backs up this assumption.

The impacts of the pandemic impacted 19.1 million individuals in February 2021. As a result, there is an increase in the number of unemployed. Digital technological advancements and the fast-moving industrial revolution are some of the obstacles.

High Number of Labor Force

As one of the world’s most populous countries, Indonesia actually has a quite big number of labor force. However, this is not supported by the availability of jobs.

The quality of the labor market in Indonesia appears to be declining due to a surplus of labor that is not met by the quantity of available jobs. This is a problem that the government must resolve.

Low Level of Education and Skills

The low level of education is to blame for the poor quality of the workforce. This has an influence on the incompatibility of workers.

A lack of technological competence and understanding also contribute to the low standards of the workforce. Indeed, if the labor has proper skills and education, it will be easier for them to work or start a business.

Random Distribution of Workforce

In Indonesia, labor distribution is not evenly distributed; in fact, 60% is located on the island of Java. Regions with vast expanses, on the other hand, continue to have a limited number of workers. As a result of this uneven distribution, employment problems occur.

Minimum Protection of the Workforce

Welfare protection that has not been optimized could be observed in the minimum wage, insufficient working conditions, and so on. As a result, workers will lose their motivation to work which also impacts the society’s economy and the investment environment.

The Efforts to Overcome Employment Issues

Through understanding what is employment above, you can understand how the problems become barriers to Indonesia’s economy. However, that does not mean that these problems cannot be reduced or solved. Some of the efforts that can be done are:

  • Improving the workforce’s competency. This initiative is believed to boost the amount of workers who meet the field requirements and can contribute effectively in a working environment.
  • Establish as many job openings as needed. The government may assist the society by establishing work opportunities, as well as enabling private corporations to address one of the employment issues, namely the rate of unemployment.
  • Supporting entrepreneurship.
  • To increase the welfare of the Indonesian people, the government may want to implement a proper wage policy for labor.
  • Workers’ protection should be strengthened. This may be achieved by introducing social security and labor regulations.
  • Workforce placement. The placement and empowerment of a competent staff is a concerted effort to ensure that the workforce is evenly distributed in every region.

That was Clockster’s review on the definition of employment and the problems that occurred in Indonesia. Understanding fundamental concepts and knowledge of employment and the common problem is essential for workers.

As a result, you are totally aware of the advantages as well as the risks that may be encountered while joining the workforce. Let’s improve your abilities once again by reading other articles on Clockster.

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