This study analyzes the effect of inflation on Indonesia's unemployment rate from 2015 to 2024. Using a descriptive-verificative quantitative approach and simple linear regression, secondary time-series data from BPS and BI were examined. The regression model produced Y = 4.969 + 0.142X. The t-test yielded a significance value of 0.299 (> 0.05), indicating that inflation has a positive but statistically insignificant effect on open unemployment. The coefficient of determination (R²) is 13.4%, showing that inflation weakly explains unemployment variations, while 86.6% depends on external factors. This finding contradicts the classical Phillips Curve due to structural anomalies, particularly the COVID-19 pandemic shock where unemployment spiked despite low inflation. Consequently, government employment policies should not rely solely on monetary stability but must integrate labor-intensive investments and human resource development.
Copyrights © 2026