Research Paper
Year: 2020 | Month: September | Volume: 7 | Issue: 9 | Pages: 117-122
Analysis of Factors Affecting Unemployment Rate in Sumatera Utara Province
Fadhilah Arny Fachrudin1, Rahmanta2, Rujiman3
1,2,3Faculty of Economics and Business, Universitas Sumatera Utara, Indonesia
Corresponding Author: Fadhilah Arny Fachrudin
ABSTRACT
Unemployment is a problem that becomes an obstacle to economic development. The decline in the unemployment rate in Sumatera Utara Province is still far from the target set by the government. This study aims to analyze investment, minimum wages, human development index, and inflation affecting the unemployment rate in Sumatera Utara Province. The research method used is multiple linear regression analysis and uses secondary data for the period 2011-2018 in the form of a quarter. The simultaneous test results from this study are investment, minimum wages, human development index, and inflation have a simultaneous and significant effect on unemployment rate in Sumatera Utara Province. The result of the partial test states that investment has a positive and insignificant effect of 0.006, minimum wages has a negative and significant effect of 1.384, human development index has a negative and significant effect of 8,273, inflation has a negative and significant effect of 0.088. This means that the increase in minimum wages, human development index and inflation will reduce unemployment rate in Sumatera Utara Province. It is recommended that the government pay more attention to policies related to minimum wages, the human development index and the inflation rate in order to increase employment in the economy.
Keywords: Investment, Minimum Wages, Human Development Index, Inflation, Unemployment Rate
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