ANALISIS TINGKAT PENGANGGURAN DI ASIA PASIFIK 5

Abstract

Countries in the Asia Pacific region are Economic Powerhouse which despite having a high level of economy when compared to countries in other regions, still have unemployment problems that still need to be resolved. This study aims to find factors that affect the unemployment rate in Asia-Pacific 5, namely China, Fiji, Papua New Guinea, Australia, and the Philippines. The research method uses panel data with the 2016-2021 Fixed Effect Model. The results showed that GDP had a significant negative effect on the unemployment rate, while other variables had no significant effect. This result is supported by the theory of the relationship between economic growth and unemployment, namely the law of Okun, which states that for each increase of 2 percent GDP related to the Potential GDP, the unemployment rate will decrease by around 1 percent. The negative influence of the gross domestic product shows that this result is in line with the previous hypothesis which states that when the gross domestic product has increased, the unemployment rate will decrease. The government is expected to create jobs, change the investment climate, spread some economic stimulus, and improve the quality of human resources with education.