Research on relationship between macroeconomics variable towards unemployment rate in Indonesia / Muhammad Azfar Mohd Asri

Unemployment is defined as a situation in which a person of working age desires a full-time job but is unable to obtain one due to financial constraints. In this age of globalisation, unemployment has emerged as a problem and a global phenomenon that affects people all over the world. Every country, regardless of its economic status (whether poor or wealthy), will experience an uncontrollable unemployment problem at some point. Therefore, this research purpose is to examines the relationship between macroeconomic factors such as inflation, gross domestic product, and population towards unemployment rate in Indonesia. Research on unemployment in Indonesia is lacking, and the country's unemployment rate is rising year after year, therefore this study focused on Indonesia rather than other countries. The researcher is examining and researching the variations in variable rates from 1991 to 2020. Researcher unable to obtain data for 2021 because Macrotrend, the Indonesian Department of Statistics, and the World Bank have not provided any official figures. In this regard, researcher relying on a single Macroeconomic Theory, Okun's Law, because it appears to be applicable to researcher study. Other theories, like as Keynesian theory, cannot be employed since investors, wages, and other elements are not used as independent variables. This study incorporated multicollinearity, the normality test, and serial correlation. The goal of this study is to establish the relationships between these three independent variables and the dependent variables. The expected finding for this research shows that independent variable which is inflation, and population growth has a positive significant relationship while GDP growth has a negative insignificant relationship with an unemployment rate in Indonesia country. Keywords: Economics Theory, Macroeconomics Variables, Unemployment Rate.