Indonesia faces complex labor market challenges in the post Covid-19 pandemic era, characterized by an economic recovery that is not matched by adequate labor absorption. The dynamic Open Unemployment Rate (OUR) and the number of poor populations are suspected to influence individuals' decisions to participate in the labor force. This study aims to analyze the influence of the OUR and the number of poor populations on the Labor Force Participation Rate (LFPR) in Indonesia during the 2020-2024 recovery period. A quantitative research method was applied using data from 34 provinces sourced from the Central Statistics Agency (CSA). Panel data regression analysis with the Fixed Effects Model (FEM), selected through the Chow and Hausman tests, served as the main approach. The results indicate that, simultaneously, the OUR and poverty significantly affect the LFPR. Partially, the OUR has a negative influence, confirming the dominance of the discouraged worker effect, while poverty has a positive influence, reflecting the necessity to work mechanism in the Indonesian economic context. These findings underscore the need for holistic policies in addressing unemployment and poverty to enhance optimal labor force participation.
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