International Journal of Business and Quality Research
Vol. 4 No. 04 (2026): October - December International Journal of Business and Quality Research (IJB

The Effect of Inflation and Economic Growth on the Unemployment Rate in Indonesia for the 2016-2025 Period

Muhammad Rizqulloh Akbar (Department Of Economic Development, Sriwijaya University, Indonesia)
Muhammad Jossy Naufa (Department Of Economic Development, Sriwijaya University, Indonesia)
Anna Yulianita (Department Of Economic Development, Sriwijaya University, Indonesia)
Muhammad Subardin (Department Of Economic Development, Sriwijaya University, Indonesia)
Siti Rohima (Department Of Economic Development, Sriwijaya University, Indonesia)



Article Info

Publish Date
01 Oct 2026

Abstract

This study aims to analyse the effect of inflation and economic growth on the unemployment rate in Indonesia during the 2020–2024 period. The research employs a quantitative approach using multiple linear regression analysis to examine the partial and simultaneous effects of inflation and economic growth on unemployment. The results show that inflation has a positive but statistically insignificant effect on the unemployment rate, with a significance value of 0.274. Meanwhile, economic growth has a negative and significant effect on unemployment, indicated by a significance value of 0.004, suggesting that increased economic activity contributes to reducing unemployment. Simultaneously, inflation and economic growth significantly affect unemployment, with the model explaining 71.8% of the variation in unemployment. The findings support Okun’s Law but indicate that the classical Phillips Curve relationship is not fully supported during the research period, which was influenced by the COVID-19 pandemic and economic recovery process.

Copyrights © 2026






Journal Info

Abbrev

IJBQR

Publisher

Subject

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

Description

International Journal of Business,and Quality research (IJBQR) is a high quality open access peer reviewed research journal. providing a platform for the researchers, academicians, professional, practitioners and students to impart and share knowledge in the form of high quality empirical and ...