The Job Loss Insurance Program as a Government Policy Response to Address the Impact of National Economic Fluctuations and Layoffs
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Vol. 19 No. 2 (2024)
Keywords:
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economic fluctuations, layoffs, job loss programs, job market information, job training
Abstract
Fluctuations in the national economy caused by several things, such as a decline in economic growth, the global economic crisis, and the COVID-19 pandemic, often lead to layoffs (PHK). Layoffs have various negative impacts on life, such as depression, mental health, financial problems, social relationships, decreased physical health, and impacts on careers. The JKP program is one of the policies to overcome these negative impacts. The JKP program is designed to provide financial support, job training, and access to labor market information for laid-off workers, with the aim of reducing the social and economic impact of layoffs and helping workers return to the labor market with better skills. The aim of this research is to explain the JKP program as a response to government policy in overcoming the negative impacts of layoffs. This research uses a qualitative and quantitative descriptive approach. The implementation of the JKP program has shown positive results, such as increasing people's purchasing power and contributing to economic recovery. However, there are several challenges in its implementation, including infrastructure, technical problems and uneven socialization. Periodic program evaluation is needed to address this problem and ensure the long-term effectiveness of the JKP program. This article also emphasizes the importance of collaboration between government and industry in improving the relevance and quality of vocational training. It is hoped that the JKP program can continue to adapt and improve protection for workers in Indonesia, thereby providing better economic and social stability
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References
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Deming, D., & Noray, K. (2018). Stem Careers and the Changing Skill Requirements of Work. NBER Working Paper Series. https://doi.org/10.2139/ssrn.3451346
Dew, M.A., Bromet, E.J., & Penkower, L. (1992). Mental health effects of job loss in women. Psychological Medicine, 22, 751 - 764.
Dooley, D., Fielding, J.E., & Levi, L.D. (1996). Health and unemployment. Annual review of public health, 17, 449-65 .
Ehrenberg, R. G., & Smith, R. S. (2017). The Labor Market Effects of International Trade and Production Sharing. Modern Labor Economics. New York: Routledge. https://doi.org/10.4324/9781315101798
Fawaz, Y. (2017). To claim or to retire: The social security claiming decision of employed and unemployed workers. International Journal of Manpower, 38, 392–416.
Garcia, I. L., Maestas, N., & Mullen, K. J. (2019). Latent Work Capacity and Retirement Expectations. Michigan Retirement Research Center Research Paper No. 2019-400. http://dx.doi.org/10.2139/ssrn.3489371.
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Laski, Kazimierz. (2019). Economic growth and the growth of effective demand. Lectures in Macroeconomics. Oxford Academic. https://doi.org/10.1093/oso/9780198842118.003.0009
Llorens, J. C. (2012). Human Rights and the Inclusive Society. Globalization and Human Rights. https://doi.org/10.1007/978-94-007-4020-4_3
Loewe, M. (2016). Social protection: A key instrument for social, economic and political development. PEGNet Policy Brief No. 7/2016.
Marjanovi?, D., & Domazet, I. S. (2021). Foreign Direct Investments. Handbook of Research on Institutional, Economic, and Social Impacts of Globalization and Liberalization. 23, 78-85.
Moffitt, R. A. (2014). Unemployment benefits and unemployment. The IZA World of Labor, 1–13.
Nora, M. (2018). Social protection in the EU: State of play, challenges and options. European Parliament Research Service Policy Briefing.
Nuraeni, Yeni., Nasution, Faizal Amir., Nuzula, Firdausi. (2022). Readiness of Job Training Institutions and Labor Market Information Systems for Implementation of the Job Loss Guarantee Program. Proceedings of the 4th International Conference on Economics, Business and Economic Education Science 2021, 27-28 July 2021. http://dx.doi.org/10.4108/eai.27-7-2021.2316849
Pandian, R. K. (2016). Does Manufacturing Matter for Economic Growth in the Era of Globalization? Social Forces, 95, 909–940. https://doi.org/10.1093/SF/SOW095
Prasetyo, B., Handayani, I. G. A. K. R., Sulistiyono, A., & Karjoko, L. (2019). The Social Security Models for State Civil Aparatus in the Concept of the State of Welfare. Proceedings of the 3rd International Conference on Globalization of Law and Local Wisdom (ICGLOW 2019).
Price, R.H., Choi, J.N., & Vinokur, A. (2002). Links in the chain of adversity following job loss: how financial strain and loss of personal control lead to depression, impaired functioning, and poor health. Journal of occupational health psychology, 7 4, 302-312
Renahy, Emilie, C. Mitchell, A. Molnar, C. Muntaner, Edwin Ng, F. Ali, P. O’Campo. (2018). Connections between unemployment insurance, poverty and health: a systematic review. European Journal of Public Health, 1–7 doi:10.1093/eurpub/ckx235
Shahidi, F. V., & Parnia, A. (2021). Unemployment Insurance and Mortality Among the Long-Term Unemployed: A Population-Based Matched Cohort Study. American Journal of Epidemiology. 2021 Oct 1;190. https:/doi.org/ 10.1093/aje/kwab144
Silitonga, C. Oktaviani., Solechan., Azhar, M. (2022). Prospek Pemberian Jaminan Kehilangan Pekerjaan Guna Memberikan Perlindungan Hak Pekerja dalam Sistem Hukum Ketenagakerjaan. Administrative Law & Governance Journal. Volume 5 Issue 1, March 2022.
Sjöberg, O. (2010). Social Insurance as a Collective Resource: Unemployment Benefits, Job Insecurity and Subjective Well-being in a Comparative Perspective. Social Forces, 88, 1281–1304.
Sokolov, O (2023). Vocational Training of Unemployed Citizens: Experience of the European Union countries. Scientific notes of the Russian Academy of Entrepreneurship. https://doi.org/10.24182/2073-6258-2023-22-1-75-81
Speer, J.D. (2017). Pre-Market Skills, Occupational Choice, and Career Progression. The Journal of Human Resources, 52, 187 - 246.
Surindra, B., Artantri, M. W., Forijati, R., & Annas, M. (2021). Analisis Pengangguran dan Kesempatan Kerja di Masa Pandemi COVID-19. Jurnal Pendidikan Ekonomi Akuntansi Kewirausahaan, Vol.1 No.2
Tambunan, T. T. H. (2020). Economic Growth, Labor Market Segmentation, and Labor Productivity: A Story from Indonesia. https://doi.org/10.4018/978-1-7998-1207-4.ch013
Tung, Le Thanh. (2019). Role of Unemployment Insurance in Sustainable Development in Vietnam:Overview and Policy Implication. Entrepreneurship And Sustainability Issues 2019 Vol. 6 No. 3 (March). http://doi.org/10.9770/jesi.2019.6.3(6)
Uren, Lawrence. (2018). The redistributive role of unemployment benefits. Journal of Economic Dynamics and Control Volume 90, May 2018, Pages 236-258
Vahid, Faraz., Muntaner, Shankardass, Quinonez, Siddiqi. (2019). The effect of unemployment benefits on health: A propensity score analysis. National Library of Medicine (NIH) Soc Sci Med 2019 Apr:226:198-206. DOI:10.1016/j.socscimed.2019.02.047
Warsida, R Yossina., Yanwar., Raharja, Hadhi., Suwadji, Y Tri., Setiyaningsih, Noviyanti., Muhyiddin. (2023). Evaluasi Program Prioritas Nasional: Kinerja Program Jaminan Kehilangan Pekerjaan. Working Papers, Pusat Pengembangan Kebijakan Ketenagakerjaan, Kementerian Ketenagakerjaan.
Widanarti, T Wahyu, Budiono, A Rachmad, Santoso, Budi. (2022). Kebijakan Program Jaminan Kehilangan Pekerjaan Sebagai Perlindungan Hukum Terhadap Pekerja Yang Diberhentikan Berdasarkan UU Cipta Kerja Pasal 46. Yuridika, UnairVol. 37 No. 2 (2022): Volume 37 No 2 May 2022
Wiryadi, K Jennifer, Novendra, Bayu. (2021). Jaminan Kehilangan Pekerjaan Dampak Pandemi COVID-19: Pengaturan, Manfaat, dan Perbandingannya dengan Negara Lain. Negara Hukum: Vol. 12, No. 1, Juni 2021
Yanwar., Warsida, R Yossina., Maryani., Suwadji, Y Tri., Annazah, N Siti. (2022). Analisis Dampak dan Manfaat Program Jaminan Kehilangan Pekerjaan (JKP) untuk Kesejahteraan Tenaga Kerja di Indonesia. Working Papers, Pusat Pengembangan Kebijakan Ketenagakerjaan, Kementerian Ketenagakerjaan.
Badan Pusat Statistik. (2024). Pertumbuhan Ekonomi Nasional Tahun 2020-2024. Jakarta: Badan Pusat Statistik
Barbero, J., Rodríguez, A. F., & Zhu, C. (2020). Guide on Labour Inspection and Social Security. https://www.ilo.org/publications/guide-labour-inspection-and-social-security
Bazzani, T., de le Court, A., Diveeva, N. I., Eleveld, A., Klawitter, S., Singer, R., … Sychenko, E. (2018). Dealing with Unemployment: Labour Market Policy Trends. Berlin: Humboldt-Universitat zu Berlin.
Blanton, R. G., & Blanton, S. (2016). Globalization and Collective Labor Rights. Sociological Forum, 31, 181–202. https://doi.org/10.1111/SOCF.12239
Budeianskyi, B. (2022). Social Protection of The Population In The State Guarantees System. Electronic Scientific Publication “Public Administration and National Security,” (6(28)).
Deming, D., & Noray, K. (2018). Stem Careers and the Changing Skill Requirements of Work. NBER Working Paper Series. https://doi.org/10.2139/ssrn.3451346
Dew, M.A., Bromet, E.J., & Penkower, L. (1992). Mental health effects of job loss in women. Psychological Medicine, 22, 751 - 764.
Dooley, D., Fielding, J.E., & Levi, L.D. (1996). Health and unemployment. Annual review of public health, 17, 449-65 .
Ehrenberg, R. G., & Smith, R. S. (2017). The Labor Market Effects of International Trade and Production Sharing. Modern Labor Economics. New York: Routledge. https://doi.org/10.4324/9781315101798
Fawaz, Y. (2017). To claim or to retire: The social security claiming decision of employed and unemployed workers. International Journal of Manpower, 38, 392–416.
Garcia, I. L., Maestas, N., & Mullen, K. J. (2019). Latent Work Capacity and Retirement Expectations. Michigan Retirement Research Center Research Paper No. 2019-400. http://dx.doi.org/10.2139/ssrn.3489371.
Hagen, D.Q. (1983). The relationship between job loss and physical and mental illness. Hospital & community psychiatry, 34 5, 438-41
Kementerian Ketenagakerjaan. (2024). Data Konsolidasi Pemutusan Hubungan Kerja (PHK). Direktorat Jenderal Pembinaan Hubungan Industrial dan Jaminan Sosial Tenaga Kerja. Jakarta: Direktorat Jenderal PHI & Jamsos, Kementerian Ketenagakerjaan
Kementerian Ketenagakerjaan. (2024). Jumlah Peserta Aktif dan Penerima Manfaat JKP per tanggal 31 Juli 2024. Jakarta: Pusat Data dan Teknologi Informasi Ketenagakerjaan, Kementerian Ketenagakerjaan.
Kementerian Ketenagakerjaan. (2023). Outlook Ketenagakerjaan 2024. Jakarta: Pusat Pengembangan Kebijakan Ketenagakerjaan, Kementerian Ketenagakerjaan.
Kuka, Elira. (2019). Quantifying the Benefits of Social Insurance: Unemployment Insurance and Health. Review of Economics and Statistics. https://doi.org/10.1162/rest_a_00865
Laski, Kazimierz. (2019). Economic growth and the growth of effective demand. Lectures in Macroeconomics. Oxford Academic. https://doi.org/10.1093/oso/9780198842118.003.0009
Llorens, J. C. (2012). Human Rights and the Inclusive Society. Globalization and Human Rights. https://doi.org/10.1007/978-94-007-4020-4_3
Loewe, M. (2016). Social protection: A key instrument for social, economic and political development. PEGNet Policy Brief No. 7/2016.
Marjanovi?, D., & Domazet, I. S. (2021). Foreign Direct Investments. Handbook of Research on Institutional, Economic, and Social Impacts of Globalization and Liberalization. 23, 78-85.
Moffitt, R. A. (2014). Unemployment benefits and unemployment. The IZA World of Labor, 1–13.
Nora, M. (2018). Social protection in the EU: State of play, challenges and options. European Parliament Research Service Policy Briefing.
Nuraeni, Yeni., Nasution, Faizal Amir., Nuzula, Firdausi. (2022). Readiness of Job Training Institutions and Labor Market Information Systems for Implementation of the Job Loss Guarantee Program. Proceedings of the 4th International Conference on Economics, Business and Economic Education Science 2021, 27-28 July 2021. http://dx.doi.org/10.4108/eai.27-7-2021.2316849
Pandian, R. K. (2016). Does Manufacturing Matter for Economic Growth in the Era of Globalization? Social Forces, 95, 909–940. https://doi.org/10.1093/SF/SOW095
Prasetyo, B., Handayani, I. G. A. K. R., Sulistiyono, A., & Karjoko, L. (2019). The Social Security Models for State Civil Aparatus in the Concept of the State of Welfare. Proceedings of the 3rd International Conference on Globalization of Law and Local Wisdom (ICGLOW 2019).
Price, R.H., Choi, J.N., & Vinokur, A. (2002). Links in the chain of adversity following job loss: how financial strain and loss of personal control lead to depression, impaired functioning, and poor health. Journal of occupational health psychology, 7 4, 302-312
Renahy, Emilie, C. Mitchell, A. Molnar, C. Muntaner, Edwin Ng, F. Ali, P. O’Campo. (2018). Connections between unemployment insurance, poverty and health: a systematic review. European Journal of Public Health, 1–7 doi:10.1093/eurpub/ckx235
Shahidi, F. V., & Parnia, A. (2021). Unemployment Insurance and Mortality Among the Long-Term Unemployed: A Population-Based Matched Cohort Study. American Journal of Epidemiology. 2021 Oct 1;190. https:/doi.org/ 10.1093/aje/kwab144
Silitonga, C. Oktaviani., Solechan., Azhar, M. (2022). Prospek Pemberian Jaminan Kehilangan Pekerjaan Guna Memberikan Perlindungan Hak Pekerja dalam Sistem Hukum Ketenagakerjaan. Administrative Law & Governance Journal. Volume 5 Issue 1, March 2022.
Sjöberg, O. (2010). Social Insurance as a Collective Resource: Unemployment Benefits, Job Insecurity and Subjective Well-being in a Comparative Perspective. Social Forces, 88, 1281–1304.
Sokolov, O (2023). Vocational Training of Unemployed Citizens: Experience of the European Union countries. Scientific notes of the Russian Academy of Entrepreneurship. https://doi.org/10.24182/2073-6258-2023-22-1-75-81
Speer, J.D. (2017). Pre-Market Skills, Occupational Choice, and Career Progression. The Journal of Human Resources, 52, 187 - 246.
Surindra, B., Artantri, M. W., Forijati, R., & Annas, M. (2021). Analisis Pengangguran dan Kesempatan Kerja di Masa Pandemi COVID-19. Jurnal Pendidikan Ekonomi Akuntansi Kewirausahaan, Vol.1 No.2
Tambunan, T. T. H. (2020). Economic Growth, Labor Market Segmentation, and Labor Productivity: A Story from Indonesia. https://doi.org/10.4018/978-1-7998-1207-4.ch013
Tung, Le Thanh. (2019). Role of Unemployment Insurance in Sustainable Development in Vietnam:Overview and Policy Implication. Entrepreneurship And Sustainability Issues 2019 Vol. 6 No. 3 (March). http://doi.org/10.9770/jesi.2019.6.3(6)
Uren, Lawrence. (2018). The redistributive role of unemployment benefits. Journal of Economic Dynamics and Control Volume 90, May 2018, Pages 236-258
Vahid, Faraz., Muntaner, Shankardass, Quinonez, Siddiqi. (2019). The effect of unemployment benefits on health: A propensity score analysis. National Library of Medicine (NIH) Soc Sci Med 2019 Apr:226:198-206. DOI:10.1016/j.socscimed.2019.02.047
Warsida, R Yossina., Yanwar., Raharja, Hadhi., Suwadji, Y Tri., Setiyaningsih, Noviyanti., Muhyiddin. (2023). Evaluasi Program Prioritas Nasional: Kinerja Program Jaminan Kehilangan Pekerjaan. Working Papers, Pusat Pengembangan Kebijakan Ketenagakerjaan, Kementerian Ketenagakerjaan.
Widanarti, T Wahyu, Budiono, A Rachmad, Santoso, Budi. (2022). Kebijakan Program Jaminan Kehilangan Pekerjaan Sebagai Perlindungan Hukum Terhadap Pekerja Yang Diberhentikan Berdasarkan UU Cipta Kerja Pasal 46. Yuridika, UnairVol. 37 No. 2 (2022): Volume 37 No 2 May 2022
Wiryadi, K Jennifer, Novendra, Bayu. (2021). Jaminan Kehilangan Pekerjaan Dampak Pandemi COVID-19: Pengaturan, Manfaat, dan Perbandingannya dengan Negara Lain. Negara Hukum: Vol. 12, No. 1, Juni 2021
Yanwar., Warsida, R Yossina., Maryani., Suwadji, Y Tri., Annazah, N Siti. (2022). Analisis Dampak dan Manfaat Program Jaminan Kehilangan Pekerjaan (JKP) untuk Kesejahteraan Tenaga Kerja di Indonesia. Working Papers, Pusat Pengembangan Kebijakan Ketenagakerjaan, Kementerian Ketenagakerjaan.
Authors
Putri, I. A., Nasution, F. A. P. and Muhyiddin, M. (2024) “The Job Loss Insurance Program as a Government Policy Response to Address the Impact of National Economic Fluctuations and Layoffs”, Jurnal Ketenagakerjaan, 19(2), pp. 130–149. doi: 10.47198/jnaker.v19i2.393.
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