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All Journal International Journal of Global Operations Research
Tarmizi Zulkifli Abdurachman
Universitas Syiah Kuala, Darussalam, Banda Aceh, Indonesia
Computer Science & IT Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Engineering Mathematics

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Determinants of Unemployment in the Large and Medium Industrial Sector in Indonesia Tarmizi Zulkifli Abdurachman; Sofyan Syahnur; Putri Bintusy Syathi
International Journal of Global Operations Research Vol 2, No 3 (2021)
Publisher : iora

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.47194/ijgor.v2i3.113

Abstract

As a country with the second-highest unemployment rate, Indonesian policymakers should worry about this condition. Based on the macroeconomic perspective, unemployment is affected by the firms' labour demand. It highlights that the firm's profit or loss highly determines the labour force demand. Using the Fixed Effect Model, this study results show that the labour force significantly affects industrial output, and the changes of industrial output highly increase the labour demand in the market. However, foreign and domestic capital neither significantly reduce unemployment rate in Indonesia nor stimulate the large and medium industries to absorb labour in the market. The Government should utilize foreign and domestic capital efficiently as possible to reduce unemployment rate.
Co-Authors Putri Bintusy Syathi, Putri Bintusy Sofyan Syahnur