REVISITING DETERMINANTS OF OPEN UNEMPLOYMENT RATEIN WEST JAVA PROVINCE: A REGIONAL DATA ANALYSIS

Sri  Mulyati; Salma  Hasna Zulfa; Annisa  Reinelia Warman

doi:10.34147/crj.v11i02.413

Authors

Sri Mulyati Institut Teknologi Bandung
Salma Hasna Zulfa Institut Teknologi Bandung
Annisa Reinelia Warman Institut Teknologi Bandung

DOI:

https://doi.org/10.34147/crj.v11i02.413

Keywords:

inflation, investment, regional minimum wage, unemployment

Abstract

West Java Province has the third highest open unemployment rate (TPT) in Indonesia, at 6.74% (BPS, 2025). Regionally, high open unemployment rates are also found in regencies/cities with the highest investment realization in West Java. This study aims to re-examine the factors that influence the open unemployment rate in West Java using data from 27 districts/cities during the period 2018 to 2023. The analysis was conducted using two-way fixed effect panel data regression. Based on the statistical analysis results, there was no significant correlation between regional minimum wage policies, inflation rates, and investment realization with the open unemployment rate. Meanwhile, economic growth, labor force participation rate, and average length of schooling have a negative correlation and a significant effect on the open unemployment rate. Therefore, the policy strategies that can be implemented are divided into two main objectives, which are creating jobs and improving the quality of human resources in West Java.

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