Unemployment and inflation

Based on BPS reports, the number of unemployed in Indonesia keeps increasing. The latest data from BPS indicates that our national unemployment rate in 2006 reached 10.4%, [out of a total productive labor force of 106.3 million people. Meanwhile, the government had predicted that the inflation rate in 2006 would be around 7%.

 

            The government keeps on trying to contain inflation and to maintain it an acceptable level. By this ‘acceptable level’, we mean to say that the inflation will not get out of control and hence economic stability can be achieved.

 

            You will learn more about the problem of unemployment when you pass to class XI, while the problem of inflation will be discussed in more detail later in chapter 9.