International Journal of Quantitative Research and Modeling
Vol 4, No 1 (2023)

Impact of Covid-19 Pandemic on Unemployment in Indonesia

Sabran Sabran (Syiah Kuala University)
Apridar Apridar (Faculty of Economic and Business, Syiah Kuala University, Banda Aceh, Indonesia)
Muhammad Abrar (Faculty of Economic and Business, Syiah Kuala University, Banda Aceh, Indonesia)



Article Info

Publish Date
06 Mar 2023

Abstract

The Covid-19 pandemic has had a significant impact on the economy. As a result, many companies were forced to close, and employees lost their jobs. Several economic variables suspected of mediating the impact of the Covid-19 pandemic on unemployment include investment, economic growth, and inflation. This study aims to determine the impact of the Covid-19 pandemic on unemployment in Indonesia either directly or through the mediation of investment, economic growth, and inflation. This research was conducted using panel data regression in 34 provinces in Indonesia in the 2018Q1 – 2021Q4 period. Through path analysis, the results showed that the Covid-19 pandemic has a direct positive impact on unemployment. The economic growth variable significantly mediates the effect of the Covid-19 pandemic on unemployment. Meanwhile, investment and inflation variables do not have a significant effect. This research is expected to provide an objective picture of the impact of the Covid-19 pandemic on unemployment in Indonesia and become a benchmark for policy formulation in dealing with the impact of this pandemic.

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Journal Info

Abbrev

ijqrm

Publisher

Subject

Computer Science & IT Decision Sciences, Operations Research & Management Engineering Environmental Science Physics

Description

International Journal of Quantitative Research and Modeling (IJQRM) is published 4 times a year and is the flagship journal of the Research Collaboration Community (RCC). It is the aim of IJQRM to present papers which cover the theory, practice, history or methodology of Quatitative Research (QR) ...