DETERMINANTS OF UNEMPLOYMENT RATE IN INDONESIA

Evidence from Indonesia

Abstract

This study aims to analyze the effect of population, human development index, minimum wage and education on unemployment in Indonesia. This study uses a quantitative approach with panel data which is a combination of cross-section data from 34 provinces in Indonesia and time series from 2022 to 2024. Data analysis using a panel data regression model using e views software and classical assumption tests. Secondary data was obtained from the Central Statistics Agency and the Ministry of Manpower of the Republic of Indonesia. Based on the results of the research that has been conducted, it was found that there is a negative and significant influence between the human development index and unemployment in Indonesia. Then the population and provincial minimum wages have a negative and insignificant effect on unemployment in Indonesia. And education has a positive and significant effect on unemployment in Indonesia.

Keywords : Unemployment, Population, Human Development Index, Minimum Wage, Education.