Abstract
The research objective was to analyze the social and economic factors that affect unemployment in the development area of Central Java, namely in Brebes Regency, Tegal City, Tegal Regency, and Pemalang Regency (BREGASMALANG) in 2010-2020. The determinants of unemployment used in this study include the human development index, district/city minimum wage, and gross regional domestic product. The data used in this study are secondary data obtained from the Central Statistics Agency (BPS). The research method used in Panel Data Regression Analysis with Fixed Effect Model (FEM). The result of this study indicates that the human development index & district/city minimum wage it means that it has no significant effect on the open unemployment rate in Bregasmalang. Meanwhile, the gross regional domestic product has a negative and significant effect on the open unemployment rate in Bregasmalang. With the influence of regional gross domestic product on the open unemployment rate, therefore the government is expected to be able to maximize the sub-sectors contained in the GRDP so that the sub-sector is able to increase employment so that it can suppress the high unemployment rate in the Regency/City concerned, namely the Brebes Regency, Tegal City, Tegal Regency, and Pemalang Regency.Keywords: Open Unemployment Rate, HDI, District/City Minimum Wages, and GRDP
Highlights
A process that causes the per capita income of the population in a country to increase over a long period can be interpreted as economic development
Model Fit Test The model suitability test is the initial test that is carried out to ensure the most suitable model for use. This model can be searched through the following tests: Chow test The Chow test is a test used for the first time to determine the most suitable model for use between the Fixed Effect Model (FEM) and the Common Effect Model (CEM)
Hausman Test The Hausman test is a test that is carried out to determine the appropriate model to use between the Fixed Effect Model (FEM) or the Random Effect Model (REM)
Summary
A process that causes the per capita income of the population in a country to increase over a long period can be interpreted as economic development. Central Java's GRDP in 2012 is ranked 4th in Indonesia compared to other provinces with a GRDP value of IDR 210,848.42 billion at constant prices with base year 2000 (Firmansyah, 2014). In 2020 Central Java's GRDP at constant prices with base year 2010 reached IDR 965,629.09 billion. Unemployment is an undesirable problem that can occur in every country around the world and if this unemployment problem is not resolved immediately, the contribution of unemployed graduates, nation, society and even state will increase (Hossain et al, 2018). In some developing countries the problem of unemployment, especially for young people, has become a threat to social, economic and political stability (Msigwa & Kipesha, 2013)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
