ANALISIS KORELASI TINGKAT KEMANDIRIAN DAERAH DENGAN TINGKAT PENGANGGURAN TERBUKA PADA LEVEL PROVINSI DI INDONESIA

Abstract

The rights, authority, and responsibilities granted to local governments to manage their own affairs, as mandated by Law Number 23 of 2014 on Regional Government, provide not only autonomy but also a unique burden for local governments in improving the welfare of their regions. One of the determining factors of public welfare is the high rate of open unemployment, where only a portion of the population has employment that can sustain their livelihood. This study analyzes the correlation between regional independence, measured through the level of Local Own-Source Revenue (PAD), and the Open Unemployment Rate in a region using panel data regression analysis. The analysis was conducted on data from Indonesia's provincial PAD and Open Unemployment Rate from 2005 to 2021. The results show that the three variables significantly affect the Open Unemployment Rate in Indonesia by 62.14 percent. From these findings, it can be concluded that regional independence, as measured by the variables studied, has not comprehensively impacted the reduction of the Open Unemployment Rate in the regions. Therefore, further research is needed to obtain more accurate results. This study can serve as an initial projection of the region's ability to reduce unemployment and be used as a foundation for public policy considerations or as a reference for ongoing research.