ANALYSIS OF FACTORS INFLUENCING THE OPEN UNEMPLOYMENT RATE IN INDONESIA

Abstract

Statistics Indonesia (BPS) data still shows an uneven distribution of poverty in Indonesia, where high unemployment rates (TPT) are also found not only in Java but also in Sumatra (Riau) and Papua. This study aims to analyze the influence of GRDP, TPAK, provincial minimum wages, and education levels on the open poverty rate in Indonesia. This study uses a multiple linear regression model with panel data analysis methods for the period 2018 to 2025 from 34 provinces in Indonesia sourced from the Indonesian Central Bureau of Statistics. The results of the study indicate that statistically there is no influence between GRDP and TPT, but there is a negative relationship. This explains that the increase in productivity in Indonesia is also dominated by capital accumulation (capital-intensive), but this needs further explanation. TPAK and UMP have a negative influence and relationship with TPT, so that increased labor participation and wage increases can reduce the number of poverty in Indonesia. Interestingly, the discovery of a positive relationship or influence between education level and TPT indicates the phenomenon of uneducated workers being absorbed into the labor market.