UNDERSTANDING THE DYNAMICS OF UNEMPLOYMENT DETERMINING FACTORS IN JAVA ISLAND USING MULTIPLE REGRESSION

Abstract

The high unemployment rate in Java, which is exacerbated by the economic crisis such as the COVID-19 pandemic, is a serious problem that requires special attention. This research investigates how investment, regional minimum wages, the Human Development Index (HDI), and household consumption impact the unemployment rate across districts and cities in Java during the 2022–2024 period. A quantitative approach is adopted in this research, employing the Multiple Regression method for data analysis. Secondary data sourced from the Central Statistics Agency and the National Development Planning Agency serves as the foundation for this research. The findings indicate that investment, regional minimum wages, the Human Development Index (HDI), and household consumption contribute to a notable reduction in unemployment levels. This result suggests that higher levels of these four variables may contribute to lowering the unemployment rate. Therefore, policies to increase investment, minimum wages, human development, and household consumption need to be a top priority in efforts to overcome unemployment in Java.