International Journal of Economics and Management
Vol. 4 No. 02 (2026): IEM : International Journal of Economics and Management

The Effect of Open Unemployment Rate on GDP Per Capita in Medan City for the Period 2015–2024

Biwi Cahya Wigrha (Universitas Pembangunan Panca Budi)
Annisa Ilmi Faried (Universitas Pembangunan Panca Budi)



Article Info

Publish Date
12 Jul 2026

Abstract

This study investigates the influence of the Open Unemployment Rate (OUR) on Gross Regional Domestic Product (GRDP) per capita in Medan City over the 2015–2026 period. A quantitative descriptive-associative approach was applied using secondary time-series data from the Central Bureau of Statistics (BPS) of Medan City, encompassing eleven years of observation with two projection years (2025–2026). Simple linear regression, t-test, and the coefficient of determination (R²) served as the primary analytical tools. The resulting regression equation is Y = 42.714 + 6.769X with R² = 0.247, indicating that OUR explains only 24.7% of the variation in GRDP per capita. The significance test yields p = 0.144 > 0.05, leading to the acceptance of the null hypothesis: the OUR exerts no statistically significant effect on GRDP per capita in Medan. The city's economic dynamics are predominantly shaped by the trade-and-services sector structure, investment flows, inflationary pressure, and regional fiscal policy interventions (Faried, Hasanah, & Fadlan, 2022). Policy implications underscore the importance of productive-sector-oriented development strategies to foster inclusive and sustainable labor absorption.

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Journal Info

Abbrev

iem

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

The IEM invites manuscripts in the areas: Management, accounting, Marketing Management, Finance Management, Strategic Management, Operation Management, Human Resource Management, E-business, Knowledge Management, Management Syariah, Accounting Syariah, Corporate Governance, Management Information ...