ANALISIS PENGARUH JUMLAH ANGKATAN KERJA, UPAH MINIMUM, PENANAMAN MODAL DALAM NEGERI, PROPORSI PDRB SEKTOR INDUSTRI, PROPORSI PDRB SEKTOR JASA TERHADAP TINGKAT PENGANGGURAN TERBUKA DI PROVINSI JAWA TENGAH

Abstract

This study aims to analyze the direction and magnitude of the influence of the number of labor force, minimum wage, domestic investment, proportion of industrial sector GRDP, and proportion of service sector GRDP on the open unemployment rate in regencies or cities in Central Java in 2015-2021 using panel data regression analysis. The results of the analysis show that the Fixed Effect Model (FEM) was chosen as the best estimation model, which shows that the minimum wage has a positive effect on the open unemployment rate and the proportion of GDP in the service sector has a negative effect on the open unemployment rate. Meanwhile, the number of labor force, domestic investment, and the proportion of GRDP in the industrial sector have no effect on the open unemployment rate. The service sector in Central Java is proven to be able to reduce the unemployment rate. In addition, the high or low level of wages will affect the tendency of producers to recruit labor. The government needs to review the prevailing wage policy so as not to burden entrepreneurs in the production process. In addition, public infrastructure development also needs to be improved so that the service sector can operate more efficiently and have more impact on the community's economy.