Escalate : Economics and Business Journal
Vol. 1 No. 02: Driving Change and Innovation in the Digital Age

Analysis of the Influence of Economic and Educational Factors on the Unemployment Rate in Indonesia

Ayu Gracia Febrianti Hutapea (Universitas Negeri Medan)
Christy Alicyanova Simatupang (Universitas Negeri Medan)
Tamariska Tumanggor (Universitas Negeri Medan)
Akmal Huda Nasution (Universitas Negeri Medan)
Chairunnisa Zakina Adibra (Universitas Negeri Medan)



Article Info

Publish Date
02 Apr 2026

Abstract

This study aims to analyze the factors influencing the unemployment rate in Indonesia, particularly from economic and educational perspectives. The research employs a literature review method by examining relevant journals, books, and data from Statistics Indonesia. The findings indicate that economic factors such as economic growth, inflation, and minimum wages significantly affect the unemployment rate. Meanwhile, educational factors, including education level, skills, and the alignment between competencies and labor market demands, also play a crucial role in workforce absorption. However, the mismatch between education and industry needs, along with the lack of soft skills, remains a major cause of educated unemployment. Therefore, strong collaboration among the government, educational institutions, and industry is necessary to develop a competent workforce aligned with labor market demands.

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Journal Info

Abbrev

escalate

Publisher

Subject

Economics, Econometrics & Finance

Description

Escalate invites both empirical and theoretical articles that explore micro and macro phenomena. The journals publication scope encompasses a wide array of domains, including macro and micro economics, business strategy and policy, entrepreneurship, finance and accounting studies, human resource ...