Determinants of the Unemployment Rate in East Kalimantan Province

Abstract

Unemployment is a macroeconomic problem that affects human survival directly. For most people losing a job is a decreased standard of living. East Kalimantan is an Indonesian province on the eastern tip of Borneo Island bordering Malaysia, the capital of East Kalimantan province is Samarinda. East Kalimantan has several economic advantages, such as mining, fishing, plantations, and livestock. However, even though East Kalimantan has some economic advantages, the region has lagging development, declining welfare, lagging areas, and low economic market activity. The problem of unemployment. This analysis uses panel data, and the result of the best model selection is the Random Effect Model (REM). Independent variables influence 55.01% of the unemployment rate, and all independent variables positively impact unemployment.