The Effect of Realized Indonesian Government Expenditures and GDP Growth on Unemployment (Case Study in Indonesia 2006-2021)

Abstract

Unemployment is a problem that exists in every country, both developed and developing countries, although not all experience it, in general it is often found in developing countries, including Indonesia. In ASEAN, Indonesia is the country with the highest unemployment rate compared to other countries, namely Indonesia with an average poverty rate of 5.5 percent, Singapore with an average poverty rate of 4.3 percent, the Philippines with an average poverty rate of 3.6 percent, Malaysia has an average poverty rate of 3.3 percent, Vietnam has an average poverty rate of 1.8 percent, and Thailand has an average poverty rate of 1.1 percent. The aim of this research is to see the effect of actual government spending and GDP growth on poverty. The analysis technique used in this research is multiple linear regression analysis. Multiple linear regression analysis is a regression with a dependent variable (Y) that connects or is explained by more than one variable. It can be two variables, three and so on independent variables (X1, X2, X3 .... Xn) but still show a linear relationship diagram. The results show that an increase in district/city government expenditure throughout Indonesia will have an impact on reducing declines, as well as GDP growth will have an impact on reducing declines, but not significantly.