THE EFFECT OF ECONOMIC GROWTH AND COVID-19 PANDEMIC ON UNEMPLOYMENT RATE AND THE NUMBER OF MSMEs IN WEST JAVA PROVINCE

Abstract

Purpose: This study aims to reveal the effect of economic growth and the COVID-19 pandemic
on the unemployment rate and the number of MSMEs in 26 districts/cities of West Java
Province. Methods: The method used is a descriptive quantitative approach and uses a path
analysis method, Analysis data: data analysis uses path analysis. These tests include statistical
tests, classical assumption tests, and Sobel tests. Results and discussions: The results showed
that (1) partially economic growth has a negative correlation with the unemployment rate, but
the COVID-19 pandemic positively correlated with the unemployment rate. Simultaneously the
number of MSMEs, economic growth, and the COVID-19 pandemic have a significant effect
on the number of MSMEs in 26 regencies/cities of West Java Province. (2) partially the number
of MSMEs has a negative effect but does not significant. Economic growth has a negative and
significant effect, and the COVID-19 pandemic has a positive and significant effect on the
unemployment rate. Simultaneously the number of MSMEs, economic growth, and the COVID-19 pandemic significantly affected the unemployment rate in 26 regencies/cities of West Java
Province. Conclusion: simultaneously economic growth, the COVID-19 pandemic, and the
number of MSMEs have a significant effect on the unemployment rate