Analysis of the Factors That Influence the Level of Open Unemployment in the Province of Bali

Abstract

This research was conducted against the background of the fluctuating open unemployment rate in Bali Province. The unemployment rate is very important to measure the success rate of economic development in a region. A high unemployment rate in a region indicates low economic growth in the region. The increase in the unemployment rate is also influenced by the minimum wage. Therefore, this study wants to analyze the relationship between the district or city minimum wage, economic growth, dependency ratio, and employment opportunities and the open unemployment rate in Bali Province. This research was conducted in the regencies and cities of Bali Province from 2011 to 2022, with 108 observations. The data collec tion method used is a literature study with secondary data. This research uses panel data models and multiple linear analysis techniques. The panel data model selected in this study is the Random Effect Model (REM). The results of this study indicate that district/city minimum wage, economic growth, dependency ratio, and employment opportunities simultaneously affect the open unemployment rate in Bali Province. Partially, district/city minimum wage, economic growth, and dependency ratio have a negative and significant effect on the open unemployment rate in Bali Province. Partially, employment opportunities have a positive and insignificant influence on the open unemployment rate in Bali Province.