ECONOMETRIC: FACTORS AFFECTING UNEMPLOYMENT IN SUMATERA PROVINCE

Abstract

Economic growth in a country can be hampered due to several factors, including increasing unemployment and poverty in Indonesia. This study aimed to analyze the factors that cause unemployment in Sumatra using a panel data regression model. The results of the panel data regression show that the minimum wage variable has a positive effect on unemployment in Sumatra, the economic growth variable has a negative effect on unemployment in Sumatra, and the population variable has a positive effect on unemployment in Sumatra. The high unemployment rate in a country will cause many problems, including increasing crime. Therefore, it requires attention from the government to equip the high population with counseling, education, coaching, and job training to increase the productivity of its people.