DETERMINANT OF UNEMPLOYMENT IN INDONESIA

Galih Aga Lumayung

Abstract


Unemployment is a social and economic phenomenon that has a significant impact on individuals, society, and the economy as a whole. This study aims to investigate the effects of FDI (Foreign Direct Investment), economic growth, inflation, and exchange rate on the unemployment rate in Indonesia. Using macroeconomic data from a specific period, this study applies a regression model to assess the relationship between these variables. The model used in this study is multiple linear regression using time series data between 1990-2021. The regression results show that FDI and inflation significantly positively affect unemployment in Indonesia, the exchange rate hurts unemployment in Indonesia, and economic growth does not affect unemployment in Indonesia.


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Publihser:
Universitas Ahmad Dahlan

Editorial Address:
Yogyakarta

This work is licensed under CC BY 4.0