Modeling the determinants of unemployment in North Sumatra, Indonesia

Abstract

This research aims to determine the influence of GRDP, Education, and Labor Force Participation Level (TPAK) on the unemployment rate in North Sumatra Province, both partially and simultaneously. This research uses data from 2007-2021 obtained through the Central Statistics Agency (BPS). This research uses time series data with multiple linear regression analysis methods using the E-Views version 12 application. The results of this research state that the GRDP variable has a negative and significant effect on unemployment with a coefficient value of - 0.235546. The education variable also has a negative and significant influence on unemployment with a coefficient value of -0.262346 . The Labor Force Participation Level (TPAK) variable also has a negative and significant impact on unemployment in North Sumatra province with a coefficient value of -0.304335. The results of the coefficient of determination state that the GRDP, Education and TPAK variables influence unemployment by 79.07% while the remaining 20.93% is influenced by other variables outside this research.