The Effect of Population Growth, Human Development Index, City Minimum Wage and Sectoral Economic Growth on the Open Unemployment Rate in Jambi City

Abstract

This study aims to analyze the conditions and the influence of population growth, the Human Development Index (HDI), municipal minimum wage, and sectoral economic growth on the open unemployment rate in Jambi City. The author draws upon findings from previous studies regarding the factors that affect the open unemployment rate. The data utilized in this study comprises time series data from 2000 to 2023, sourced from the Central Statistics Agency (BPS) of Jambi Province and Jambi City. The data was analyzed using a multiple linear regression model, supported by quantitative descriptive techniques and a series of relevant statistical tests. The results of this analysis indicate that the open unemployment rate in Jambi City has increased due to population growth not being matched by job creation, an HDI that has yet to effectively absorb the workforce, a high municipal minimum wage not supported by productivity, and a slowdown in the industrial and service sectors. From 2000 to 2023, the service and industrial sectors have proven to be the most influential in reducing unemployment when experiencing positive growth in Jambi City.