Manufacturing Growth, Minimum Wages, Investment, and Gender Development as Determinants of Unemployment

Tri Yuli Lestari; Diah Setyorini Gunawan; Chairani Fadhila Pravitasari

doi:10.61255/jeemba.v4i5.1734

Authors

Tri Yuli Lestari Universitas Jenderal Soedirman, Indonesia
Diah Setyorini Gunawan Universitas Jenderal Soedirman, Indonesia
Chairani Fadhila Pravitasari Universitas Jenderal Soedirman, Indonesia

DOI:

https://doi.org/10.61255/jeemba.v4i5.1734

Keywords:

Domestic Investment, Gender Development, Manufacturing GRDP, Minimum Wage, Open Unemployment

Abstract

Purpose – This study examines the effects of manufacturing GRDP, minimum wages, domestic investment, and the Gender Development Index on the Open Unemployment Rate.

Design/methodology/approach - This study employs a quantitative approach using panel data from eight districts and cities in Banten Province during 2017–2024. Secondary data were obtained from official statistical publications and analyzed using panel data regression.

Findings/Results - The results show that manufacturing GRDP and the Gender Development Index have negative and significant effects on the Open Unemployment Rate, while minimum wages have a positive and significant effect. Domestic investment has no significant effect, suggesting that investment activities have not generated sufficient employment, particularly when concentrated in relatively capital-intensive sectors.

Originality/Value - This study highlights the different roles of industrial growth, wage policy, investment, and gender development in explaining regional unemployment. The findings indicate that investment expansion alone is insufficient to reduce unemployment without stronger labor absorption. Policies should therefore encourage labor-intensive industrial development, balanced wage setting, and improved access to employment opportunities across gender groups.

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