The Effect of Population and Economic Factors On Open Unemployment

Abstract

This study aims to analyze the influence of human development index, regional minimum wage, gross regional domestic product, population growth rate on open unemployment in districts/cities in Central Java. This study used a panel data analysis method by taking data at the Central Statistics Agency of Central Java with the scope of research of 35 regencies/cities in Central Java during 2017 to 2021. The results of this study show that the selected model used in this study is the Random Effect Model (REM) by going through testing on the hausman test. In addition, the findings in this study are that HDI has a negative and insignificant relationship with open unemployment. GRDP has a significant negative influence on the open unemployment rate, the minimum wage and the number of inhabitants have a significant positive effect on the open unemployment rate, while the rate of population growth has a positive and significant relationship with the open unemployment rate on regencies/cities in Central Java in 2017-2021.