The Impact of Inflation and Actualized APBD Expenditures on Manado City's Jobless Rate, 2007-2021

Abstract

Purpose: This study aims to analyse the effect of inflation, the human development index, and the provincial minimum wage on unemployment in Indonesia and also analyse the effect of Gross Regional Domestic Product, provincial minimum wage, investment, inflation, and population on provincial youth unemployment in Java and Sulawesi in 2011–2019. Method: The research objective is to determine the effect of inflation and the realization of APBD spending on unemployment in the city of Manado. The type of research used by the author is a quantitative descriptive research type, and the type of data used is secondary data obtained from BPS Manado City and North Sulawesi Province BPS. In this study using the Multiple Regression analysis model. The method used is panel data regression, with data from 33 provinces in Indonesia in 2015-2018. Results and conclusion: The results of this study indicate that inflation has a negative but not significant effect and the realization of APBD spending has a negative and significant effect on the unemployment rate. The government has been good at using its APBD spending so that the increase in realized spending can reduce the unemployment rate in Manado City. Research implications: The large number of open unemployment has broad social implications because those who do not work do not have income. Unemployment is a problem faced by almost all regions, Manado City, which is the capital of the province, is not immune from this unemployment problem. Originality/value: Multicollinearity testing of the study aims to test whether the regression model found a correlation between the independent variables.