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All Journal International Journal of Economics Development Research (IJEDR)
Abd Rajab
Universitas Negeri Makassar
Economics, Econometrics & Finance Social Sciences

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Determinants of the Open Unemployment Rate in Six Selected Provinces in Indonesia A. Khaerul Maudy Atharid; Abd Rahim; Muhammad Syafri; Diah Retno Dwi Hastuti; Abd Rajab
International Journal of Economics Development Research (IJEDR) Vol. 7 No. 3 (2026): International Journal of Economics Development Research (IJEDR)
Publisher : Yayasan Riset dan Pengembangan Intelektual

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37385/rsjw2g62

Abstract

Open unemployment remains one of the major challenges in Indonesia's labor market despite continued economic development. Previous studies have generally examined the determinants of unemployment at the national level or across all provinces, while research focusing specifically on provinces with persistently high unemployment rates remains limited. This study aims to analyze the effects of economic growth, population growth, and human resource quality on the Open Unemployment Rate (OUR) in six Indonesian provinces with the highest unemployment rates DKI Jakarta, West Java, Banten, Riau Islands, North Sulawesi, and Maluku during the 2015–2025 period. The novelty of this study lies in examining these three determinants simultaneously using panel data regression in provinces with persistently high unemployment rates. This study employed a quantitative approach using secondary data obtained from Statistics Indonesia (BPS). Based on the model selection tests, the Random Effects Model (REM) was identified as the most appropriate estimation model. The results indicate that economic growth and human resource quality have a negative and statistically significant effect on the Open Unemployment Rate, whereas population growth has a negative but statistically insignificant effect. Collectively, all independent variables significantly affect the Open Unemployment Rate. The model explains 65.01% of the variation in the Open Unemployment Rate (R² = 0.6501), while the remaining 34.99% is explained by other factors outside the model. These findings suggest that strengthening economic growth and improving human resource quality are essential strategies for reducing unemployment, particularly in provinces with persistently high unemployment rates.
Co-Authors A. Khaerul Maudy Atharid Diah Retno Dwi Hastuti Muhammad Syafri Rahim, Abd