THE EFFECT OF EDUCATION ON THE OPEN UNEMPLOYMENT RATE IN INDONESIA
DOI:
https://doi.org/10.65886/ijde.v2i01.26Keywords:
Education, Open Unemployment, Average School Length, School Length Expectations, Number of Schools.Abstract
Open Unemployment Rate (TPT) This indicator has an important role in evaluating the success of human resource quality development. The purpose of this study is to understand how the average affected schools (RLS), old hope schools (HLS), and the number of schools above the state (JS) compare to Indonesia's open poverty rate (TPT) in 2023. This study uses a quantitative approach using a multiple regression model. Based on cross-section secondary data from 34 provinces. The findings of the study show that from the value of the determination coefficient (R-squared), it can be concluded that the education variables together have a significant influence on TPT, 0.534. Individually, the RLS and JS variables had a significant positive influence on TPT, while the HLS variable showed a significant negative influence. All of this suggests that improving access to education without improving the quality and relevance of the curriculum can magnify skills mismatches, so that they do not automatically lower the unemployment rate. Therefore, education policies need to be directed at improving the quality and linkage between education and the needs of the job market to reduce the unemployment rate in a sustainable manner.
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Arin Ramadhiani Soleha, & Moh. Faizin. (2023). Analysis of the Influence of Average School Age, Per Capita Expenditure, and Unemployment on the Human Development Index. Niqosiya: Journal of Economics and Business Research, 3(1), 75–90. https://doi.org/10.21154/niqosiya.v3i1.1995
As Shadiqqy, M. (2020). The Effect of Industrial Production Index (IPI), Bank Indonesia Syariah Certificate (SBIS), Inflation and Exchange Rate on the Indonesian Sharia Stock Index (2012-2018 period). Captivity: Journal of Religious and Social Research, 3(2), 39. https://doi.org/10.14421/panangkaran.2019.0301-03
Barysheva, G. A., Nedospasova, O. P., Zhironkin, S. A., & Ogunlana, A. O. (2018). The Impact Of Education Level On Some Aspects Of Wellbeing. 1(1), 336–341. https://doi.org/10.15405/epsbs.2018.04.37
Clark, D. H. (1983). How secondary school graduates perform in the labor market: a study of Indonesia. In World Bank Staff Working Paper (Vol. 615).
Desembriarto, D. (2021). The Effect of Economic Growth and Average School Length on the Open Unemployment Rate in Bantul Regency. Journal of Regional Research, XXI, No 4(4), 4066.
Edward, D. K. (2024). The Contribution of Vocational Education to Reducing Unemployment in Nigeria. 3(2), 68–73. https://rijournals.com/law-communication-and-languages/
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Hasibuan, R. P. A., Ruslan, D., & Fitrawaty. (2017). The Effect of Education on Unemployment Rate in Indonesia. Annual International Seminar on Transformative Education and Educational Leadership (AISTEEL), 2548–4613.
Khan, M. Z., Said, R., Mazlan, N. S., & Nor, N. M. (2022). Incidence of educational mismatch and earning in Pakistan. PLoS ONE, 17(6 June), 1–14. https://doi.org/10.1371/journal.pone.0268008
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Manurung, E. N., & Hutabarat, F. (2021). The Effect of School Length of Expectation, Average School Length, Per Capita Expenditure on the Human Development Index. Scientific Journal of Management Accounting, 4(2), 121–129. https://doi.org/10.35326/jiam.v4i2.1718
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Kafa, M. Z., & Sciences, P. (2024). 8. 42 million individuals (BPS, 2023).
Riya, Ismail A. W, H. L. (2024). Pengaruh Kualitas Pendidkan Terhadap Tingkat Pengangguran diPulau JawaThe Leverage of Education Quality on the Unemployment Rate in Java Island. Journal of Management and Social Economics, 7(1), 26–36.
Siskawati, N., & Zulfhi Surya, R. (2021). The Effect of School Length Expectation, Average School Length on Open Unemployment Rate in Regencies/Cities of Riau Province. Selodang Mayang: Scientific Journal of the Regional Development Planning Agency of Indragiri Hilir Regency, 7(3), 173–177. https://doi.org/10.47521/selodangmayang.v7i3.231
Yoana, Auwalin, I., & Rumayya. (2024a). The role of vocational education on unemployment in Indonesia. Cogent Education, 11(1). https://doi.org/10.1080/2331186X.2024.2340858
Yoana, Auwalin, I., & Rumayya. (2024b). The role of vocational education on unemployment in Indonesia. Cogent Education, 11(1). https://doi.org/10.1080/2331186X.2024.2340858
Ariansyah, K., Wismayanti, Y. F., Savitri, R., Listanto, V., Aswin, A., Ahad, M. P. Y., & Cahyarini, B. R. (2024). Comparing labor market performance of vocational and general school graduates in Indonesia: insights from stable and crisis conditions. Empirical Research in Vocational Education and Training, 16(1). https://doi.org/10.1186/s40461-024-00160-6
Arin Ramadhiani Soleha, & Moh. Faizin. (2023). Analysis of the Influence of Average School Age, Per Capita Expenditure, and Unemployment on the Human Development Index. Niqosiya: Journal of Economics and Business Research, 3(1), 75–90. https://doi.org/10.21154/niqosiya.v3i1.1995
As Shadiqqy, M. (2020). The Effect of Industrial Production Index (IPI), Bank Indonesia Syariah Certificate (SBIS), Inflation and Exchange Rate on the Indonesian Sharia Stock Index (2012-2018 period). Captivity: Journal of Religious and Social Research, 3(2), 39. https://doi.org/10.14421/panangkaran.2019.0301-03
Barysheva, G. A., Nedospasova, O. P., Zhironkin, S. A., & Ogunlana, A. O. (2018). The Impact Of Education Level On Some Aspects Of Wellbeing. 1(1), 336–341. https://doi.org/10.15405/epsbs.2018.04.37
Becker, G. S. . (1993). Human capital : a theoretical and empirical analysis, with special reference to education. The University of Chicago Press.
Clark, D. H. (1983). How secondary school graduates perform in the labor market: a study of Indonesia. In World Bank Staff Working Paper (Vol. 615).
Desembriarto, D. (2021). The Effect of Economic Growth and Average School Length on the Open Unemployment Rate in Bantul Regency. Journal of Regional Research, XXI, No 4(4), 4066.
Edward, D. K. (2024). The Contribution of Vocational Education to Reducing Unemployment in Nigeria. 3(2), 68–73.
Egeten, M. G., Kawung, G. M. V., & D. Tolosang, K. (2023a). Analysis of the Influence of Education Level and Number of Labor Force on Open Unemployment Rate in Cities in North Sulawesi Province. Scientific Periodic Journal of Efficiency, 23(3), 25–36.
Egeten, M. G., Kawung, G. M. V., & D. Tolosang, K. (2023b). Analysis of the Influence of Education Level and Number of Labor Force on Open Unemployment Rate in Cities in North Sulawesi Province. Scientific Periodic Journal of Efficiency, 23(3), 25–36.
Fauzaturroisiyah, O., & Wijaya, R. S. (n.d.). Level of Analysis of Factors Contributing to the High Unemployment Rate in Madiun Regency Top 15 Open Unemployment Rate Rankings in East Java Province (%). pp. 3(04), 640–652.
Hasibuan, R. P. A., Ruslan, D., & Fitrawaty. (2017). The Effect of Education on Unemployment Rate in Indonesia. Annual International Seminar on Transformative Education and Educational Leadership (AISTEEL), 2548–4613.
Kafa, M. Z., & Sciences, P. (2024). DETERMINANTS OF EDUCATED UNEMPLOYMENT IN INDONESIA : A The issue of unemployment in Indonesia warrants significant research due to two fundamental reasons . First , the unemployment rate continues to rise at a pace that exceeds economic growth , with labor absorption rates varying across regions and levels of educational attainment . Second , Indonesia is currently experiencing a demographic dividend , characterized by a larger proportion of the population in productive age groups compared to unproductive ones . However , this opportunity has not been fully optimized to mitigate household-level income inequality ( Sipayung et al ., 2022 ). According to data from the Central Statistics Agency (BPS) in 2022 , Indonesia's total labor force reached 143 . 72 million , with an open unemployment rate ( TPT ) of 5 . 86 %, equivalent to approximately 8 . 42 million individuals (BPS, 2023). In response to unemployment challenges , the Indonesian government has undertaken various initiatives since 2009 , including the allocation of mandatory spending amounting to 20 % of the state budget to promote growth in the education sector , particularly higher education . Although the government has demonstrated its commitment to enhancing the quality of the labor market , research by Digdowiseiso ( 2020 ) suggests that increasing government expenditure on education alone is insufficient to achieve meaningful improvements . Effective reform requires simultaneous advancements in quality assurance , equitable access to education , institutional capacity , and enrollment rates . Furthermore , the government must address broader economic growth and the establishment of minimum wage policies , which have significantly influenced the rate of educated unemployment over the past decade . Meanwhile , Pasay and Indrayanti ( 2012 ) argue that this issue not only reduces overall productivity and consumption but also contributes to various social challenges , including the persistent problem of educated unemployment . 6(2), 107–126.
Khan, M. Z., Said, R., Mazlan, N. S., & Nor, N. M. (2022). Incidence of educational mismatch and earning in Pakistan. PLoS ONE, 17(6 June), 1–14. https://doi.org/10.1371/journal.pone.0268008
Kongelige, D., & Videnskabernes, D. (1969). Andreas B Lin K En B Er G.
Lutriyani, D. (2023). The Effect of Population and Poverty on Economic Growth in the Perspective of Islamic Economics (Study on Metro Cities for the Period 2015 - 2021). Journal of Islamic Economics, 2(1), 1–45.
Manurung, E. N., & Hutabarat, F. (2021). The Effect of School Length of Expectation, Average School Length, Per Capita Expenditure on the Human Development Index. Scientific Journal of Management Accounting, 4(2), 121–129. https://doi.org/10.35326/jiam.v4i2.1718
Mustakim, A., Ferlin, & Rizal. (2022). The Effect of Average School Length on the Open Unemployment Rate in Kendari City in 2010-2021. Journal of Social and Humanities, 2(3), 209–216. https://doi.org/10.57250/ajsh.v2i3.140
Neti, V. A., Sari, Y. P., & Article, I. (2024). Ecoscience: Scientific Journal of Economics and Development Analysis of Educated Unemployed in Indonesia. Mankiw defines the educated unemployed as someone who is made up of graduates of Diplomas/colleges and universities. 13(November), 150–158.
Putra Ahmad Hasibuan, R., & Ruslan, D. (n.d.). The Effect of Education on Unemployment Rate in Indonesia. In Annual International Seminar on Transformative Education and Educational Leadership (AISTEEL) eISSN.
Ramiayu, D. D. (2023). Open Unemployment Rate. Analysis of the Influence of Average School Length, Minimum Wage, and Economic Growth on the Open Unemployment Rate in East Java Regency/City, bps.go.id.
Rika Pertiwi, Asnidar Asnidar, N. H. P. A. S. S. (2025). The Influence of Education Level, Economic Growth, and Density. 2016.
Riya A.N.D., Ismail A.W, H. L. (2024). Pengaruh Kualitas Pendidkan Terhadap Tingkat Pengangguran diPulau JawaThe Leverage of Education Quality on the Unemployment Rate in Java Island. Journal of Management and Social Economics, 7(1), 26–36.
Sari, R. S., & Budiantara, I. N. (2012). Modeling Open Unemployment in East Java Using a Multivariable Spline Regression Approach. ITS Journal of Science and Arts, 1(1), 236–241.
Siskawati, N., & Zulfhi Surya, R. (2021a). The Effect of School Length Expectation, Average School Length on Open Unemployment Rate in Regencies/Cities of Riau Province. Selodang Mayang: Scientific Journal of the Regional Development Planning Agency of Indragiri Hilir Regency, 7(3), 173–177. https://doi.org/10.47521/selodangmayang.v7i3.231
Siskawati, N., & Zulfhi Surya, R. (2021b). The Effect of School Length Expectation, Average School Length on Open Unemployment Rate in Regencies/Cities of Riau Province. Selodang Mayang: Scientific Journal of the Regional Development Planning Agency of Indragiri Hilir Regency, 7(3), 173–177. https://doi.org/10.47521/selodangmayang.v7i3.231
Siskawati, N., & Zulfhi Surya, R. (2021c). The Effect of School Length Expectation, Average School Length on Open Unemployment Rate in Regencies/Cities of Riau Province. Selodang Mayang: Scientific Journal of the Regional Development Planning Agency of Indragiri Hilir Regency, 7(3), 173–177. https://doi.org/10.47521/selodangmayang.v7i3.231
Tansel, A. (2005). General versus Vocational High Schools and Labor Market Outcomes in Turkey. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.263276
Todaro, M. P., & Smith, S. C. (2020). Economic Development. Thirteenth Edition. In Pearson (Issue 13th Edition).
V. Tumilaar, T., Th. B. Maramis, M., & F. Dj. Siwu, H. (2022). The Effect of Population, Education, and Minimum Wage on the Open Unemployment Rate in Regencies/Cities of East Kalimantan Province. Scientific Periodic Journal of Efficiency, 22(5), 61–72.
Yoana, Auwalin, I., & Rumayya. (2024a). The role of vocational education on unemployment in Indonesia. Cogent Education, 11(1). https://doi.org/10.1080/2331186X.2024.2340858
Yoana, Auwalin, I., & Rumayya. (2024b). The role of vocational education on unemployment in Indonesia. Cogent Education, 11(1). https://doi.org/10.1080/2331186X.2024.2340858
Ariansyah, K., Wismayanti, Y. F., Savitri, R., Listanto, V., Aswin, A., Ahad, M. P. Y., & Cahyarini, B. R. (2024). Comparing labor market performance of vocational and general school graduates in Indonesia: insights from stable and crisis conditions. Empirical Research in Vocational Education and Training, 16(1). https://doi.org/10.1186/s40461-024-00160-6
Arin Ramadhiani Soleha, & Moh. Faizin. (2023). Analysis of the Influence of Average School Age, Per Capita Expenditure, and Unemployment on the Human Development Index. Niqosiya: Journal of Economics and Business Research, 3(1), 75–90. https://doi.org/10.21154/niqosiya.v3i1.1995
As Shadiqqy, M. (2020). The Effect of Industrial Production Index (IPI), Bank Indonesia Syariah Certificate (SBIS), Inflation and Exchange Rate on the Indonesian Sharia Stock Index (2012-2018 period). Captivity: Journal of Religious and Social Research, 3(2), 39. https://doi.org/10.14421/panangkaran.2019.0301-03
Barysheva, G. A., Nedospasova, O. P., Zhironkin, S. A., & Ogunlana, A. O. (2018). The Impact Of Education Level On Some Aspects Of Wellbeing. 1(1), 336–341. https://doi.org/10.15405/epsbs.2018.04.37
Becker, G. S. . (1993). Human capital : a theoretical and empirical analysis, with special reference to education. The University of Chicago Press.
Clark, D. H. (1983). How secondary school graduates perform in the labor market: a study of Indonesia. In World Bank Staff Working Paper (Vol. 615).
Desembriarto, D. (2021). The Effect of Economic Growth and Average School Length on the Open Unemployment Rate in Bantul Regency. Journal of Regional Research, XXI, No 4(4), 4066.
Edward, D. K. (2024). The Contribution of Vocational Education to Reducing Unemployment in Nigeria. 3(2), 68–73.
Egeten, M. G., Kawung, G. M. V., & D. Tolosang, K. (2023a). Analysis of the Influence of Education Level and Number of Labor Force on Open Unemployment Rate in Cities in North Sulawesi Province. Scientific Periodic Journal of Efficiency, 23(3), 25–36.
Egeten, M. G., Kawung, G. M. V., & D. Tolosang, K. (2023b). Analysis of the Influence of Education Level and Number of Labor Force on Open Unemployment Rate in Cities in North Sulawesi Province. Scientific Periodic Journal of Efficiency, 23(3), 25–36.
Fauzaturroisiyah, O., & Wijaya, R. S. (n.d.). Level of Analysis of Factors Contributing to the High Unemployment Rate in Madiun Regency Top 15 Open Unemployment Rate Rankings in East Java Province (%). pp. 3(04), 640–652.
Hasibuan, R. P. A., Ruslan, D., & Fitrawaty. (2017). The Effect of Education on Unemployment Rate in Indonesia. Annual International Seminar on Transformative Education and Educational Leadership (AISTEEL), 2548–4613.
Kafa, M. Z., & Sciences, P. (2024). DETERMINANTS OF EDUCATED UNEMPLOYMENT IN INDONESIA. 6(2), 107–126.
Khan, M. Z., Said, R., Mazlan, N. S., & Nor, N. M. (2022). Incidence of educational mismatch and earning in Pakistan. PLoS ONE, 17(6 June), 1–14. https://doi.org/10.1371/journal.pone.0268008
Kongelige, D., & Videnskabernes, D. (1969). Andreas B Lin K En B Er G.
Lutriyani, D. (2023). The Effect of Population and Poverty on Economic Growth in the Perspective of Islamic Economics (Study on Metro Cities for the Period 2015 - 2021). Journal of Islamic Economics, 2(1), 1–45.
Manurung, E. N., & Hutabarat, F. (2021). The Effect of School Length of Expectation, Average School Length, Per Capita Expenditure on the Human Development Index. Scientific Journal of Management Accounting, 4(2), 121–129. https://doi.org/10.35326/jiam.v4i2.1718
Mustakim, A., Ferlin, & Rizal. (2022). The Effect of Average School Length on the Open Unemployment Rate in Kendari City in 2010-2021. Journal of Social and Humanities, 2(3), 209–216. https://doi.org/10.57250/ajsh.v2i3.140
Neti, V. A., Sari, Y. P., & Article, I. (2024). Ecoscience: Scientific Journal of Economics and Development Analysis of Educated Unemployed in Indonesia. Mankiw defines the educated unemployed as someone who is made up of graduates of Diplomas/colleges and universities. 13(November), 150–158.
Putra Ahmad Hasibuan, R., & Ruslan, D. (n.d.). The Effect of Education on Unemployment Rate in Indonesia. In Annual International Seminar on Transformative Education and Educational Leadership (AISTEEL) eISSN.
Ramiayu, D. D. (2023). Open Unemployment Rate. Analysis of the Influence of Average School Length, Minimum Wage, and Economic Growth on the Open Unemployment Rate in East Java Regency/City, bps.go.id.
Rika Pertiwi, Asnidar Asnidar, N. H. P. A. S. S. (2025). The Influence of Education Level, Economic Growth, and Density. 2016.
Riya A.N.D., Ismail A.W, H. L. (2024). Pengaruh Kualitas Pendidkan Terhadap Tingkat Pengangguran diPulau JawaThe Leverage of Education Quality on the Unemployment Rate in Java Island. Journal of Management and Social Economics, 7(1), 26–36.
Sari, R. S., & Budiantara, I. N. (2012). Modeling Open Unemployment in East Java Using a Multivariable Spline Regression Approach. ITS Journal of Science and Arts, 1(1), 236–241.
Siskawati, N., & Zulfhi Surya, R. (2021a). The Effect of School Length Expectation, Average School Length on Open Unemployment Rate in Regencies/Cities of Riau Province. Selodang Mayang: Scientific Journal of the Regional Development Planning Agency of Indragiri Hilir Regency, 7(3), 173–177. https://doi.org/10.47521/selodangmayang.v7i3.231
Siskawati, N., & Zulfhi Surya, R. (2021b). The Effect of School Length Expectation, Average School Length on Open Unemployment Rate in Regencies/Cities of Riau Province. Selodang Mayang: Scientific Journal of the Regional Development Planning Agency of Indragiri Hilir Regency, 7(3), 173–177. https://doi.org/10.47521/selodangmayang.v7i3.231
Siskawati, N., & Zulfhi Surya, R. (2021c). The Effect of School Length Expectation, Average School Length on Open Unemployment Rate in Regencies/Cities of Riau Province. Selodang Mayang: Scientific Journal of the Regional Development Planning Agency of Indragiri Hilir Regency, 7(3), 173–177. https://doi.org/10.47521/selodangmayang.v7i3.231
Tansel, A. (2005). General versus Vocational High Schools and Labor Market Outcomes in Turkey. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.263276
Todaro, M. P., & Smith, S. C. (2020). Economic Development. Thirteenth Edition. In Pearson (Issue 13th Edition).
V. Tumilaar, T., Th. B. Maramis, M., & F. Dj. Siwu, H. (2022). The Effect of Population, Education, and Minimum Wage on the Open Unemployment Rate in Regencies/Cities of East Kalimantan Province. Scientific Periodic Journal of Efficiency, 22(5), 61–72.
Yoana, Auwalin, I., & Rumayya. (2024a). The role of vocational education on unemployment in Indonesia. Cogent Education, 11(1). https://doi.org/10.1080/2331186X.2024.2340858
Yoana, Auwalin, I., & Rumayya. (2024b). The role of vocational education on unemployment in Indonesia. Cogent Education, 11(1). https://doi.org/10.1080/2331186X.2024.2340858
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