This study aims to analyze the influence of regional economic growth, investment, and the number of micro and small industries on the open unemployment rate in 10 provinces of Sumatra Island during 2019-2024. Unemployment remains a serious structural problem in Indonesia, particularly in Sumatra as the second largest GDP contributor. This research employs a quantitative approach with panel data regression using the Fixed Effect Model. Data were obtained from BPS and the Ministry of Trade across 60 observations. The results indicate that regional economic growth has a negative and significant effect on unemployment (coefficient -1.877; p-value 0.0028). Investment has a negative but not significant effect (coefficient -0.167; p-value 0.2364). The number of micro and small industries has a negative and significant effect on unemployment (coefficient -2.629; p-value 0.0020). The R² of 0.8666 indicates that 86.66% of unemployment variation is explained by the three independent variables. These findings provide important implications for local governments in formulating more effective economic policies and strengthening the micro and small industry sector to reduce unemployment
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