<![CDATA[Unemployment is a complex economic issue linked to low workforce quality and limited job opportunities. The government plays a crucial role in addressing this problem through appropriate and effective fiscal policies. As a province with a large population and significant economic activity, West Java aims to reduce its unemployment rate annually. However, the effectiveness of fiscal policy at the regency/city level—specifically regarding the allocation of regional expenditure—requires further examination. Previous studies in West Java have generally analyzed the impact of total regional expenditure on unemployment but have not extensively addressed the specific effects of expenditure on goods and services versus capital expenditure. Therefore, this study aims to analyze the impact of expenditure on goods and services and capital expenditure on unemployment rates in West Java. The research employs multiple regression analysis using a panel data approach. Model selection was conducted via Chow and Hausman tests to determine the best fit among the Common Effect, Fixed Effect, and Random Effect models. The study utilizes secondary data from 27 regencies and cities in West Java covering the 2021–2023 period. The results indicate that expenditure on goods and services contributes to a reduction in unemployment rates, whereas capital expenditure does not have a significant effect. These findings highlight the importance of improving the quality and effectiveness of regional expenditure to support job creation and reduce unemployment in West Java.]]>
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