THE IMPACT OF UNEMPLOYMENT AND POVERTY LEVELS ON THE ECONOMY OF SOUTH SUMATRA

This research is to determine the effect of unemployment and poverty on economic growth in South Sumatra Province in 2020-2022. The purpose of this study was to determine the effect of unemployment and poverty on economic growth in South Sumatra Province. The results of the study show that unemployment and poverty affect economic growth in South Sumatra Province. The results of this analysis indicate that unemployment and poverty rates have a significant impact on the economy of the people of South Sumatra. High unemployment rates lead to low people's incomes, lack of purchasing power, and reduced consumption.


INTRODUCTION
Unemployment and poverty are two social problems that are interrelated and have a significant impact on the economy of the people of South Sumatra.South Sumatra, as a province in Indonesia, has considerable economic potential, especially in the agricultural, plantation, industrial and tourism sectors.However, the high unemployment rate and the rampant poverty rate are the main obstacles in optimizing this potential.The high unemployment rate in South Sumatra has had a number of negative impacts on the people's economy.First, unemployment causes a loss of people's productive potential, because they cannot contribute optimally in creating added value through work.This has an impact on the low level of production and regional economic growth.Second, unemployment also causes a decrease in people's purchasing power.When someone loses their job or is unable to find a decent job, they experience difficulty meeting their basic daily needs, such as food, clothing and shelter.As a result, the demand for goods and services decreased, which in turn had a negative impact on the business and trade sector in South Sumatra.
High and sustainable economic growth is the main condition of a necessity for the continuity of economic development and the increase of wealth.Because the number of population increases every year, at the same time the needs for daily consumption also increase every year, it is necessary to increase income every year (Tambunan, 2009).Apart from the demand side (consumption), from the supply side, population growth also requires growth in employment opportunities (income sources).
Economic growth without increasing balance of work opportunities will result in an imbalance in the distribution of additional income (ceiteiriis paribus), which in turn will create conditions for economic growth with increased poverty (Tambunan, 2009).There are three types of measurements in assessing the economic growth of a country, namely; (1) growth in output, (2) growth in output per worker, and (3) growth in output per capita (Todaro, M.P. and S.C. Smith, 2009).Basically output growth is marked by an increase in production capacity in the form of an increase in the number of workers and capital.While the growth in output of the workforce is meant as a measure of the productivity of the workforce, as well as the competitiveness of the workforce in a country or region.Meanwhile, the growth of capital output can be used as an indicator of the balance of population in a country, (Samuelson P.A and W.D. Nordhaus, 2005), (Romeir D, 2001), (Jhingan, M.L, 2014).Also presented is a graph of the balance of economic growth rates in the Regency/City of South Sumatra Province.
Apart from unemployment, the high level of poverty has also become a serious problem in the economic development of the people of South Sumatra.Poverty has a direct impact on people's quality of life, including access to education, health, and basic infrastructure.Poverty also limits fair and equitable economic opportunities for all levels of society.
In the context of South Sumatra, poverty is closely related to agriculture and agriculture, which are the main economic sectors in this province.When farmers and maternity workers are unable to generate enough income to meet their life needs, they tend to be trapped in a cycle of poverty that is difficult to leave.This has an impact on economic growth which is hampered and social inequality is increasingly widening.In its conclusion, the high unemployment rate and the still rampant poverty rate have had a significant negative impact on the economic development of the people of South Sumatra.To address this problem, comprehensive efforts are needed, including government policies that support sustainable economic development, increase in the quality of education and training, as well as the development of adequate infrastructure.In this way, it is hoped that the people of South Sumatra can overcome the challenges of unemployment and poverty, and encourage inclusive and sustainable economic growth.

RESEARCH METHOD
In this research, the researcher will conduct an analysis to find out the effect of unemployment and poverty on the South Sumatran Society's economic development period 2020-2022.The researcher uses data collection methods, namely Library Research (Library Research) and Intelligence Research, which is research that is carried out by citing several books, intellectuals and other essays that are closely related to the problem being studied.In other words, the writer collects data that is in a document nature related to the object to be studied.

Unemployment
Unemployment is one of the main problems that every country always faces.When talking about the problem of unemployment, it means not only talking about social problems but also talking about economic problems, because unemployment in addition to causing social problems also has an impact on the economic growth of a country, especially countries that are currently in a balanced state with Indonesia.he.According to Kwik Kian Giei, the Minister for National Development Planning/Head of the National Development Planning Agency (Head of Bappeinas) stated that the main challenge faced by the Government is the continued increase in the number of unemployment.Unemployment is something that will always appear in the economic sector, where when aggregate spending is more beautiful than the ability of the factors of production that have been identified in the economy to be able to produce goods and services (Prasaja, 2013).Navarreitei explains in his book "Undei rei mploymei nt ii n Undei rdei vei lopei d Countrii ei s" unemployment can be described as a situation where there is a transfer of a number of factors of work force to other fields which will not reduce the overall output of the sector of origin or it can be said that the marginal productivity of the unitthe power factor unit where the origin of Meireika Beikeirja is zero or nearly zero or negative (Jhingan, 2014).
According to (BPS, 2017) unemployment can be grouped into four, namely: a. Full or open unemployment is people who are included in the labor force but are not working and are not looking for work.b.After being unemployed, people who work less than 35 hours a week are forced to work for some reason against their will because they are not or have not been able to get a job, even though they are looking for and willingly, they are receiving jobs with lower wages than expected.c.After leaving unemployment voluntarily, people who are better off are unemployed than have jobs they feel are not in accordance with their education or wages that are more beautiful than expected.People who work less than they actually (should) can be done with the education or skills they have.

Poverty
Poverty is a condition of economic inability to meet the average standard of living of the people in a region.This condition of inability is marked by the low ability of income to meet basic needs in the form of food, clothing, and shelter.This beautiful income capability will also have an impact on the reduced ability to meet average living standards such as public health standards and educational standards.The condition of the people who are called poor can be known based on the ability of income to meet living standards (Nugroho, 1995).In principle, the standard of living in a society is not only the sufficient need for food, but also the sufficient need for health and education.A place to live or decent housing is one of the P.241-254

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The Impact of Unemployment and Poverty Levels on the Economy of the People of South Sumatra standards of living or social welfare standards in a region.Based on these conditions, a society is said to be poor if it has income that is much higher than the average income so that it does not have many opportunities to prosper itself (Suryawati, 2004).
In general, poverty is interpreted as a condition of inability of income to meet basic needs so as to be unable to guarantee survival (Suryawati, 2004: 122).The ability of income to meet basic needs based on certain price standards is so low that it does not guarantee the fulfillment of quality of life standards in general.Based on this understanding, poverty is generally identified as a condition of inability to earn income in meeting basic needs and other needs that can guarantee the fulfillment of quality of life standards.Factors that lead to poverty: a.Low level of education As previously mentioned, education is a basic need that must be fulfilled by everyone.If a person cannot fulfill his basic needs, it can be concluded that this is the cause of poverty.In this context, the cause of poverty is a basic need which is education.A low level of education results in a person who tends to lack sufficient skills, insight, and knowledge for his life.

b. Limited Work Field
The next cause of poverty is the limited field of work.With limited employment, people cannot meet their needs, because with work someone gets wages which will later be used to meet these basic needs.Limited employment opportunities will have consequences for poverty in society.It is possible for someone to create new job opportunities, but the possibility will be very small for poor people because of limited skills and capital.

c. Lazy to Work Cause
The third deficiency is lazy to work.This is the most concomitant thing that infects someone who does not want to progress and thinks that poverty is destiny.These things make someone unenthusiastic and indifferent to work, and lead them to poverty and make their wealth disappear.

d. Price Needs High Price
The high need is the cause of the subsequent poverty that occurs concurrently.This is also the reason why poor people always feel less or even not enough to meet their daily needs.In this case, it should be noted that a large proportion of poor families spend 60-80 pears of their income to meet their food needs.So when the price of foodstuffs skyrocketed, they had to cut spending on other needs and divert to food consumption.With that in mind, the government must make every effort to stabilize the prices of basic goods so that the whole society can access them easily.e. Number of Lived Family Families.This is also quite significant.When a person has a lot of family members to support, the burden on his life will of course increase as well.In this way, a person is required to increase his income according to how many members he has to live.f.Limitations of Resources (Natural and Capital).
A society will usually be plagued by poverty, one of which is due to limited natural resources or capital sources.This happened because the natural environment no longer provides benefits.When natural resources are poor or cannot be processed anymore, that is one of the causes of poverty.Sometimes these things happen because of the will of each person.g.Poor Quality of Health The next cause of poverty is the health quality of a country that is not yet good.Inadequate quality of health is also one of the fundamental causes of poverty.Difficult and expensive access to health services has become a major problem for economically beautiful communities.

Economic Development
Improvement in South Sumatra's economy in the second quarter of 2022 will continue along with accelerating vaccination in the middle of the spread of the Omicron variant with a reduction of 5.15% (yoy).The growth in the second quarter of 2022 was monitored by Berbeid from the historical pattern, which tended to grow slower at the beginning of the year.This shows that South Sumatra's economic performance is still growing stronger and is better recorded than Sumatra's national and regional economic growth, which respectively amounted to 5.01% (yoy) and 4.03% (yoy).In terms of expenditure, in the second quarter of 2022 the increase in Gross Regional Domestic Product (GDP) was supported by increases in household P.241-254

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The Impact of Unemployment and Poverty Levels on the Economy of the People of South Sumatra consumption performance and PMTB/invesment as well as positive growth in foreign export performance along with improved demand from trading and fishery partners.international commodity prices.Meanwhile, from the Business Fields (LU) sector, the economic improvement of South Sumatra in the second quarter of 2022 was mainly supported by the performance growth in the agricultural sector, forestry and fisheries as well as the large trade and water trade sector, and the repair of automobiles and motorcycles.
Based on data from the Central Statistics Agency (BPS), Indonesia's economic growth remains strong.In the third quarter of 2022, Indonesia's economic growth was recorded to remain high, namely 5.01% (yoy), at the middle of global economic growth which is in a slowing trend.With this balance, Indonesia's overall growth in 2022 was recorded at 5.31% (yoy), far from the previous year's achievement of 3.70% (yoy).Looking ahead, economic growth in 2023 is projected to remain strong in the range of 4.5-5.3%,driven by increased domestic demand, both for household consumption and investment.This prediction is in line with the increase in community mobility after the abolition of the Policy on Improving Restrictions on Community Activities (PPKM), improving business prospects, increasing inflows of Foreign Capital Investment (PMA), as well as the continuing construction of National Strategic Projects (PSN).
Economic equilibrium is a spontaneous and intermittent change in a stationary state which is always changing and replacing the previously existing equilibrium situation, while economic growth is a slow and steady long-term change that occurs through an increase in savings and population.Economic growth is one of the indicators used to measure a country's economic performance.In actual economic activities, economic growth means physical economic balance.Some of the physical economic balances that occur in a country are the increase in the production of goods and services and the balance in infrastructure.All of these things are usually measured from the balance of real national income achieved by a country in a particular period.Meanwhile, according to Siimon Kuzneit in Jhiingan (2014), economic growth is a long-term increase in the ability of a country (region) to provide as many economic goods as possible to its inhabitants; This ability grows according to technological advances, and the institutional and ideological adjustments it requires.

Unemployment Rate
According to Sukirno, the definition of unemployment can be interpreted as the situation of a productive person working and wanting to work but has not yet gotten a job.Meanwhile, people who are not trying to find a job and do not get a job are not included in unemployment (Sukirno).

Table 1. Regency/City Open Unemployment Rate in South Sumatra
Province in 2020-2022% Source: South Sumatra BPS Data Regarding The Level Of Open Unemployment Table 1, illustrates the open unemployment rate in regencies/cities in the Province of South Sumatra from 2020 to 2022, with an average unemployment rate of -0.88%Over several years, the unemployment rate in South Sumatra fell even though it fluctuated, where in 2020 before eisar 5.51% and in 2022 it will be 4.63% and all regencies/cities will have a fluctuating unemployment rate.Some regions have been able to reduce their unemployment rate so that it falls quite high.Like Lubuklinggau City in 2020 with an unemployment rate of 7.41% and in 2022 it will drop to 5.94%.The city of Palembang in 2020 has an unemployment rate of 9.86% and in 2020 an unemployment rate of 8.20%.Ogan Komering Ulu Regency in 2020 will have an unemployment rate of 6.01% and in 2022 it will be 4.39%.Ogan Komering Ilir in 2020 3.29% and in 2022 it will be 3.75%.There is one regency that is as absence as possible, in the shortest level of unemployment, which is very conjunction, namely the Pali Regency, in P.241-254

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The Impact of Unemployment and Poverty Levels on the Economy of the People of South Sumatra 2020 the unemployment level is 3.74% and in 2022 the unemployment level soared to 4.31% even though it has increased, it is still below the average for the province of South Sumatra.And Prabumulih Regency, which has only experienced the most decline rate, namely only around 5.25%, namely in 2020 the unemployment rate will be 6.64% and in 2022 it will drop to 5.25%.There are four regencies/cities with an average unemployment rate above the average in the province of Sumatra, namely, Palembang, Lubuklinggau, Musi Rawas Utara, Prabumulih.13 other regencies/cities on average are below the unemployment rate in South Sumatra Province.Ogan Komeiring Ulu Selatan Regency occupies the lowest position in reducing unemployment in the Province of South Sumatra, namely in 2022 it will be 1.83%.

Poverty level
According to Ragnar Nurskei, the meaning of poverty is something that simultaneously becomes a problem in various countries or balanced regions.This is caused by a small capacity in savings causing a beautiful real income, where if the real income is beautiful then it shows a beautiful productivity as well.If this continues to occur, this will rotate and cause capital to decrease.It is this deficiency that causes a small level of saving capacity.If the real income is low, it defines the productivity is low European Union generally defines the poor population as those who earn an income below 50 pesines compared to the median (average) income.When the average income increases, the relative poverty line will also increase.Table 2, describes the poverty level of districts/cities in South Sumatra Province.2020-2022 period.The average poverty level in South Sumatra is 0.48%, meaning that 0.48% of the population of South Sumatra are poor.From 2020 to 2022, the average poverty rate will decrease.In general, the level of poverty for regencies/cities in South Sumatra Province has fallen.There are 17 (seventeen) regencies with levels of poverty above the average level of poverty in the Province of South Sumatra, namely Ogan Komeiring Iilir Regency (0.90%), Lahat Regency (0.96%), Musi Rawas Regency (0.42%), Musi Banyuasin Regency (0.77 %), South Musi Rawas Regency (0.45%), and Lubuklinggau City (0.27%).Meanwhile, other regencies/municipalities with a level of poverty are below the level of poverty in South Sumatra Province.In 2022 the highest poverty level is in Lahat Regency (0.96%) and the most beautiful poverty rate is in Ogan Komeiring Ulu Timur (0.14%).

Economic Development
Economic balance has a strong relationship with income.Economic balance includes economic growth, inflation rate, unemployment rate, financial stability, investment, trade, and other factors that affect the economic activities of a country or region.Strong economic growth tends to have a positive impact on income.When the economy grows, productivity increases, companies produce more goods and services, and job opportunities increase.This can lead to an increase in wages and income for individuals.High economic growth tends to have a positive impact on income levels.When the economy of a country is balanced, productivity increases, companies grow, and there are more employment opportunities.This can result in increased income for individuals through increased wages, bonuses or new business opportunities.
The economic growth rate of South Sumatra Province has experienced changes from year to year, as follows:  Source : South Sumatran BPS data on the Distribution of Regional GDP Preliminaries

Analysis of the Impact of Unemployment and Poverty on the Community's Economy in South Sumatra
Unemployment is a complex problem and occurs in various regions, including South Sumatra.Problems that may be causing the high level of unemployment in South Sumatra include: 1. Economic growth is slow : If the regional economic growth slows down, this can result in limited new job opportunities.If the number of jobs available is not sufficient to meet the demand for workers, then there will be a high unemployment rate.The following describes the unemployment rate and poverty level along with economic growth in South Sumatra Province as shown in the table below: From the table above, it can be seen the level of open unemployment, the level of poverty and the economic growth of South Sumatra Province in 2020-2022 as described above.The next step is to find out how unemployment and poverty affect economic growth in South Sumatra Province.

DISCUSSION
In 2020, the number of unemployed in South Sumatra is 8.47 million people, then it will increase to 8.49 million people in 2021, then it will rise again to 8.65 million people in 2022.The open unemployment rate in South Sumatra Province is quite fluctuating ASII in South Sumatra Province from 2020 to 2022 , where in 2020 the open unemployment rate for the Province of South Sumatra is 8.47%, in 2021 it will increase to 8.49% and then in 2022 it will increase to 8.65%.
However, this figure is still below the national unemployment rate, so it can be said that unemployment is still in a condition that is not severe.The economic growth which has shown an increase from year to year has resulted in the opening of job opportunities in both formal and informal sectors in South Sumatra Province.
The poverty level in South Sumatra Province is quite fluctuating, where in 2020 the poverty rate in South Sumatra Province is 12.79% and will decrease in 2021 by 11.95% and 11.95% in 2022.
However, in general it can be seen that the poverty rate in South Sumatra Province is much higher than the national poverty rate.This is clear P.241-254

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The Impact of Unemployment and Poverty Levels on the Economy of the People of South Sumatra considering that the poor population of South Sumatra are generally the people who work in the agricultural sector, who have the most labor force in South Sumatra.Both farmers and fishermen have limited capital and on average they are seasonal workers.
The high poverty rate in South Sumatra Province is caused by a number of things, namely several districts in South Sumatra Province, which are disadvantaged areas with limited natural resources (agriculture) which are very limited so that the possibility of maximizing the potential of natural resources is very limited.Apart from the above, in terms of social conditions, the poor population generally has a relatively high level of education, bearing in mind the limited ability to obtain access to education.As a result, in a short period of time it is very difficult to reduce this level of poverty.
From the explanation above, it is clear that unemployment and poverty have had an impact on economic growth in South Sumatra Province.

CLOSING
The open unemployment rate in South Sumatra Province fluctuated quite a bit in South Sumatra Province from 2020 to 2022.However, this figure is still below the national unemployment rate, so it can be said that unemployment is still in a condition that is not severe.The poverty rate in South Sumatra Province fluctuates quite a bit, but in general it can be seen that the poverty rate in South Sumatra Province is much higher than the national poverty rate.Empowerment of the community in education must be prioritized, especially in the provision of education, training, and skills for people who have entered the working age and then with the right targeted policies, it is hoped that it will reduce the high level of unemployment and poverty in the Regency/City of South Sumatra Province.
And in the context of overcoming poverty in South Sumatra Province, it would be best for the regional government to develop policies for overcoming poverty that focus more on efforts to increase income, health, and education jointly.Building basic infrastructure in South Sumatra Province, such as electrical installations and railroads throughout the entire remote area will later have an impact on economic growth.
2. Skill gap : The difference between the skills possessed by job seekers and those required by the job market can lead to unemployment.If the skills possessed by job seekers are not in accordance with the demands of the job market, then they will experience difficulties in obtaining suitable jobs.3. Limited job opportunities : South Sumatra may face limitations in creating new job opportunities.Factors such as lack of investment, structural changes in the industry, or unsupportive government policies can affect the creation of new jobs.P.241-254 Anggun Angelica, et.alThe Impact of Unemployment and Poverty Levels on the Economy of the People of South Sumatra

Table 2 . Regency/City Poverty Rate in South Sumatra Province in 2020-2022%
Source : South Sumatra BPS data on the level of poverty Anggun Angelica, et.alThe Impact of Unemployment and Poverty Levels on the Economy of the People of South Sumatra

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Table 4 . Open Unemployment Rate, Poverty and Economic Growth in South Sumatra Province in 2020-2022%
Source : South Sumatra BPS Data