THE EFFECT OF ECONOMIC GROWTH, PROVINCIAL MINIMUM WAGE RATE, AND INFLATION ON OPEN UNEMPLOYMENT IN WEST INDONESIA Farissa Audia Febriana

Abstract

This study aims to determine the effect of economic growth, minimum wage rate, and inflation on open unemployment in western Indonesia. The analysis method used is quantitative, with multiple linear regression analysis techniques. The data used in this study were secondarily obtained from the Central Statistics Agency. The results of this study show that (1) economic growth has a significant negative effect on open unemployment; (2) The minimum wage rate has a significant negative effect on open unemployment; (3) Inflation has a significant negative effect on open unemployment. The results of this study imply that economic growth affects open unemployment because the economic growth of a country or region shows an increase. In addition, the minimum wage affects because the higher the wage set will influence the high unemployment rate, and inflation affects because, with high inflation, producers increase their production capacity by increasing labor.