Proceedings of the 4th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2019)

<Previous Article In Volume
Next Article In Volume>

Do Technological Developments Reduce Unemployment in Indonesia?

Authors
Agus Sumanto, Muhammad Hasyim Ibnu Abbas, Farida Rahmawati, Santi Merlinda
Corresponding Author
Agus Sumanto
Available Online 10 March 2020.
DOI
10.2991/aebmr.k.200305.089How to use a DOI?
Keywords
technological development, investment, unemployment
Abstract

Such rapid technological development will affect the absorption of labor in the industry and have an impact on increasing unemployment. Indonesia is among those who have to think the most about the impact of the technological development because in the next 15 years the population could reach 280 million, and could grow again to 300 million. This study is aiming to explore the effect of technological development on unemployment rate in Indonesia. The investments are used as the control variables. Panel Least Square analysis is used to find the effect. According to the analysis, it is found that technological developments positively affect the unemployment in Indonesia. It means that in Indonesia, technological development creates technological unemployment. Generally, the labor force in Indonesia has not yet been ready to face the development. The result also show that only the people in Sumatra, Java, and Bali which the islands where the development of human resources can keep up the technological developments. The result is in line with many people’s predictions that technological development can create more unemployment. In order to solve the problem, it is suggested for government to conduct training skill in the application of technology. By conducting new skills training in the application of technology, it is expected that the training is able to withstand the potential of labor forces who cannot be absorbed.

Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

<Previous Article In Volume
Next Article In Volume>
Volume Title
Proceedings of the 4th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2019)
Series
Advances in Economics, Business and Management Research
Publication Date
10 March 2020
ISBN
10.2991/aebmr.k.200305.089
ISSN
2352-5428
DOI
10.2991/aebmr.k.200305.089How to use a DOI?
Copyright
© 2020, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - CONF
AU  - Agus Sumanto
AU  - Muhammad Hasyim Ibnu Abbas
AU  - Farida Rahmawati
AU  - Santi Merlinda
PY  - 2020
DA  - 2020/03/10
TI  - Do Technological Developments Reduce Unemployment in Indonesia?
BT  - Proceedings of the 4th Padang International Conference on Education, Economics, Business and Accounting (PICEEBA-2 2019)
PB  - Atlantis Press
SP  - 345
EP  - 350
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.200305.089
DO  - 10.2991/aebmr.k.200305.089
ID  - Sumanto2020
ER  -