Open AccessANALYSIS OF DETERMINANTS OF UNEMPLOYMENT RATE IN INDONESIA
Author(s) -
Muhamad Fathul Muin
Publication year - 2020
Publication title -
jped (jurnal perspektif ekonomi darussalam) (darussalam journal of economic perspectives)/jped (jurnal perspektif ekonomi darussalam) (darussalam journal of economic perspectives)
Language(s) - English
Resource type - Journals
eISSN - 2580-6297
pISSN - 2502-6976
DOI - 10.24815/jped.v6i2.16804
Subject(s) - unemployment , unemployment rate , poverty , competence (human resources) , duration (music) , demographic economics , economics , panel data , poverty rate , regression analysis , labour economics , economic growth , econometrics , statistics , mathematics , art , literature , management
Solving the unemployment issue is one of the best ways to reduce poverty. Through the provision of job opportunities, the poverty rate can be reduced. Therefore, this research explores the factors that influence the unemployment rate across 34 provinces over the 2015-2018 period using the panel regression technique. The variable used consisting of economic growth, the percentage of people with IT competence, and the average school duration. This study indicates that the unemployment rate can be reduced by increasing the average school duration. Meanwhile, the level of economic growth and the proportion of people with IT competence have an insignificant influence on Indonesia's unemployment rate. Based on these findings, the government needs to ensure that every resident in its territory can receive an adequate education.