Main Article Content
Abstract
Purpose – This study aims to analyze the dynamic aspects determining unemployment in Indonesia for the period 1994–2024.
Methods – This research utilizes a time series data analysis in Indonesia using the Autoregressive Distributed Lag (ARDL) approach.
Findings – The study concludes that in the long run, inflation and government expenditure have a negative impact on unemployment. Meanwhile, in the short run, the lag value of unemployment, economic growth, and inflation influence the dynamic condition of unemployment.
Implication – The implications of this study are more oriented towards strengthening monetary and fiscal policies to reduce dynamic unemployment in Indonesia.
Originality – This research contributes to the analysis of the dynamic aspects determining unemployment in Indonesia by using a time series data approach with ARDL.
Abstrak
Tujuan – Penelitian ini bertujuan untuk menganalisis aspek dinamis penentu pengangguran di Indonesia untuk periode 1994 -2024.
Metode – Penelitian ini menggunakan analisis data runtut waktu di Indonesia dengan menggunakan pendekatan Autoregressive Distributed Lag (ARDL).
Temuan – Penelitian ini menyimpulkan bahwa pada jangka panjang inflasi dan pengeluaran pemerintah berimplikasi negatif terhadap pengangguran, sementara itu pada jangka pendek nilai lag pengguran, pertumbuhan ekonomi dan inflasi memiliki pengaruh terhadap kondisi dinamis pengangguran.
Implikasi – Implikasi dari penelitian ini lebih berorientasi pada penguatan kebijakan moneter dan fiskal dalam menurunkan pengangguran dinamis di Indonesia.
Orisinalitas – Penelitian ini berkontribusi terhadap analisis aspek dinamis penentu pengangguran di Indonesia menggunakan pendekatan data runtut waktu dengan ARDL.
Keywords
Article Details
Copyright (c) 2026 Aminuddin Anwar

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References
- Abid, M., Benmeriem, M., Gheraia, Z., Sekrafi, H., Abdelli, H., & Meddah, A. (2023). Asymmetric effects of the economy on unemployment in Algeria: Evidence from a nonlinear ARDL approach. Cogent Economics & Finance, 11. https://doi.org/10.1080/23322039.2023.2192454.
- Abrams, B. A. (1999). The effect of government size on unemployment rate. Public Choice, 99(3–4), 395–401. https://doi.org/10.1023/a:1018349411246
- Ahuja, D., & Pandit, D. (2020). Public Expenditure and Economic Growth: Evidence from the Developing Countries. FIIB Business Review, 9(3), 228–236. https://doi.org/10.1177/2319714520938901
- Alalawneh, M., & Nessa, A. (2020). The Impact of Foreign Direct Investment on Unemployment: Panel Data Approach. Emerging Science Journal. https://doi.org/10.28991/esj-2020-01226.
- Alexopoulos, M. (2003). Growth and unemployment in a shirking efficiency wage model. Canadian Journal of Economics, 36, 728-746. https://doi.org/10.1111/1540-5982.t01-2-00010.
- Chuttoo, U. (2020). Effect of Economic Growth on Unemployment and Validity of Okun’s Law in Mauritius. Global Journal of Emerging Market Economies, 12, 231 - 250. https://doi.org/10.1177/0974910119886934.
- Emmanuel, N., Usifoh, K. S., & Adu, M. J. (2024). Institutional Quality, Government Expenditure and Economic Growth Nexus in Nigeria. NG Journal of Social Development, 13(1), 1–19. https://doi.org/10.4314/ngjsd.v13i1.1
- Folawewo, A. O., & Adeboje, O. M. (2017). Macroeconomic Determinants of Unemployment: Empirical Evidence from Economic Community of West African States. African Development Review, 29(2), 197–210. https://doi.org/10.1111/1467-8268.12250
- Friedman, M. (1977). Nobel Lecture: Inflation and Unemployment. Journal of Political Economy, 85(3), 451–472. https://doi.org/10.1086/260579
- Gozgor, G. (2013). The impact of trade openness on the unemployment rate in G7 countries. The Journal of International Trade & Economic Development, 23(7), 1018–1037. https://doi.org/10.1080/09638199.2013.827233
- Hammad, S., Shallal, A., Allah, A., Faisal, F., & Abdullah, T. (2023). The Impact of Public Spending on Unemployment: A Study on the Iraqi Economy for the Period 2004-2021. Global Journal of Economic and Business. https://doi.org/10.31559/gjeb2023.13.4.6.
- Hjazeen, H., Seraj, M., & Ozdeser, H. (2021). The nexus between the economic growth and unemployment in Jordan. Future Business Journal, 7. https://doi.org/10.1186/s43093-021-00088-3.
- Hoon, H., Katsimi, M., & Zoega, G. (2022). Investment and the long swings of unemployment. Economics of Transition and Institutional Change. https://doi.org/10.1111/ecot.12350.
- Kreishan, K. (2011). Economic Growth and Unemployment: An Empirical Analysis. Journal of Social Sciences, 7(2), 228–231. https://doi.org/10.3844/jssp.2011.228.231
- Mohamed, A. (2024). Economic growth and unemployment nexus: empirical test of Okun’s law in Somalia. Journal of Economic Structures, 13. https://doi.org/10.1186/s40008-024-00337-y.
- Nickell, S. (1990). Unemployment: A Survey. The Economic Journal, 100, 391-439. https://doi.org/10.2307/2234131.
- Okwu, A. T., Oseni, I. O., & Obiakor, R. T. (2020). Does Foreign Direct Investment Enhance Economic Growth? Evidence from 30 Leading Global Economies. Global Journal of Emerging Market Economies, 12(2), 217–230. https://doi.org/10.1177/0974910120919042
- Pesaran, M., Shin, Y., & Smith, R. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16, 289-326. https://doi.org/10.1002/jae.616.
- Pham, T. (2024). Impact of government expenditure on unemployment in Asian countries: does institutional quality matter?. International Journal of Development Issues. https://doi.org/10.1108/ijdi-05-2024-0127.
- Popescu, C., & Diaconu, L. (2022). Inflation – Unemployment Dilemma. A Cross-Country Analysis. Scientific Annals of Economics and Business. https://doi.org/10.47743/saeb-2022-0012.
- Reina, A. (2025). The relationship between inflation and unemployment: Empirical evidence for Colombia (2007–2024). Forum for Economic and Financial Studies. https://doi.org/10.59400/fefs3225.
- Saraireh, S. (2020). The Impact of Government Expenditures on Unemployment: A Case Study of Jordan. Asian Journal of Economic Modelling. https://doi.org/10.18488/journal.8.2020.83.189.203.
- Saraireh, S. (2020). The Impact of Government Expenditures on Unemployment: A Case Study of Jordan. Asian Journal of Economic Modelling. https://doi.org/10.18488/journal.8.2020.83.189.203.
- T., F., Kibuuka, M., Mutenyo, J., Mugume, T., Ocan, P., Dayo, B., & Abuga, I. (2024). Causality between economic growth and unemployment in East African countries. International journal of economics and business management. https://doi.org/10.59568/ijebm-2024-1-1-04.
- Thapa, R., Dhakal, S., & Gurung, B. (2022). Relationship between Unemployment Rate and Economic Growth in Nepal: An Econometric Estimation. Turkish Journal of Agriculture - Food Science and Technology. https://doi.org/10.24925/turjaf.v10i8.1586-1593.5358.
- Toader, E., Firtescu, B. N., Roman, A., & Anton, S. G. (2018). Impact of Information and Communication Technology Infrastructure on Economic Growth: An Empirical Assessment for the EU Countries. Sustainability, 10(10), 3750. https://doi.org/10.3390/su10103750
- Vu Le, M., & Suruga, T. (2005). Foreign direct investment, public expenditure and economic growth: the empirical evidence for the period 1970–2001. Applied Economics Letters, 12(1), 45–49. https://doi.org/10.1080/1350485042000293130
- Wulandari, D., Utomo, S., Narmaditya, B., & Kamaludin, M. (2019). Nexus between Inflation and Unemployment: Evidence from Indonesia. The Journal of Asian Finance, Economics and Business. https://doi.org/10.13106/jafeb.2019.vol6.no2.269.
- Yousef, E. (2023). The Impact of Fiscal Policy Tools on Unemployment Rates in Jordan: Autoregressive Distributed Lag Approach. Jordan Journal of Economic Sciences. https://doi.org/10.35516/jjes.v10i1.843.
References
Abid, M., Benmeriem, M., Gheraia, Z., Sekrafi, H., Abdelli, H., & Meddah, A. (2023). Asymmetric effects of the economy on unemployment in Algeria: Evidence from a nonlinear ARDL approach. Cogent Economics & Finance, 11. https://doi.org/10.1080/23322039.2023.2192454.
Abrams, B. A. (1999). The effect of government size on unemployment rate. Public Choice, 99(3–4), 395–401. https://doi.org/10.1023/a:1018349411246
Ahuja, D., & Pandit, D. (2020). Public Expenditure and Economic Growth: Evidence from the Developing Countries. FIIB Business Review, 9(3), 228–236. https://doi.org/10.1177/2319714520938901
Alalawneh, M., & Nessa, A. (2020). The Impact of Foreign Direct Investment on Unemployment: Panel Data Approach. Emerging Science Journal. https://doi.org/10.28991/esj-2020-01226.
Alexopoulos, M. (2003). Growth and unemployment in a shirking efficiency wage model. Canadian Journal of Economics, 36, 728-746. https://doi.org/10.1111/1540-5982.t01-2-00010.
Chuttoo, U. (2020). Effect of Economic Growth on Unemployment and Validity of Okun’s Law in Mauritius. Global Journal of Emerging Market Economies, 12, 231 - 250. https://doi.org/10.1177/0974910119886934.
Emmanuel, N., Usifoh, K. S., & Adu, M. J. (2024). Institutional Quality, Government Expenditure and Economic Growth Nexus in Nigeria. NG Journal of Social Development, 13(1), 1–19. https://doi.org/10.4314/ngjsd.v13i1.1
Folawewo, A. O., & Adeboje, O. M. (2017). Macroeconomic Determinants of Unemployment: Empirical Evidence from Economic Community of West African States. African Development Review, 29(2), 197–210. https://doi.org/10.1111/1467-8268.12250
Friedman, M. (1977). Nobel Lecture: Inflation and Unemployment. Journal of Political Economy, 85(3), 451–472. https://doi.org/10.1086/260579
Gozgor, G. (2013). The impact of trade openness on the unemployment rate in G7 countries. The Journal of International Trade & Economic Development, 23(7), 1018–1037. https://doi.org/10.1080/09638199.2013.827233
Hammad, S., Shallal, A., Allah, A., Faisal, F., & Abdullah, T. (2023). The Impact of Public Spending on Unemployment: A Study on the Iraqi Economy for the Period 2004-2021. Global Journal of Economic and Business. https://doi.org/10.31559/gjeb2023.13.4.6.
Hjazeen, H., Seraj, M., & Ozdeser, H. (2021). The nexus between the economic growth and unemployment in Jordan. Future Business Journal, 7. https://doi.org/10.1186/s43093-021-00088-3.
Hoon, H., Katsimi, M., & Zoega, G. (2022). Investment and the long swings of unemployment. Economics of Transition and Institutional Change. https://doi.org/10.1111/ecot.12350.
Kreishan, K. (2011). Economic Growth and Unemployment: An Empirical Analysis. Journal of Social Sciences, 7(2), 228–231. https://doi.org/10.3844/jssp.2011.228.231
Mohamed, A. (2024). Economic growth and unemployment nexus: empirical test of Okun’s law in Somalia. Journal of Economic Structures, 13. https://doi.org/10.1186/s40008-024-00337-y.
Nickell, S. (1990). Unemployment: A Survey. The Economic Journal, 100, 391-439. https://doi.org/10.2307/2234131.
Okwu, A. T., Oseni, I. O., & Obiakor, R. T. (2020). Does Foreign Direct Investment Enhance Economic Growth? Evidence from 30 Leading Global Economies. Global Journal of Emerging Market Economies, 12(2), 217–230. https://doi.org/10.1177/0974910120919042
Pesaran, M., Shin, Y., & Smith, R. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16, 289-326. https://doi.org/10.1002/jae.616.
Pham, T. (2024). Impact of government expenditure on unemployment in Asian countries: does institutional quality matter?. International Journal of Development Issues. https://doi.org/10.1108/ijdi-05-2024-0127.
Popescu, C., & Diaconu, L. (2022). Inflation – Unemployment Dilemma. A Cross-Country Analysis. Scientific Annals of Economics and Business. https://doi.org/10.47743/saeb-2022-0012.
Reina, A. (2025). The relationship between inflation and unemployment: Empirical evidence for Colombia (2007–2024). Forum for Economic and Financial Studies. https://doi.org/10.59400/fefs3225.
Saraireh, S. (2020). The Impact of Government Expenditures on Unemployment: A Case Study of Jordan. Asian Journal of Economic Modelling. https://doi.org/10.18488/journal.8.2020.83.189.203.
Saraireh, S. (2020). The Impact of Government Expenditures on Unemployment: A Case Study of Jordan. Asian Journal of Economic Modelling. https://doi.org/10.18488/journal.8.2020.83.189.203.
T., F., Kibuuka, M., Mutenyo, J., Mugume, T., Ocan, P., Dayo, B., & Abuga, I. (2024). Causality between economic growth and unemployment in East African countries. International journal of economics and business management. https://doi.org/10.59568/ijebm-2024-1-1-04.
Thapa, R., Dhakal, S., & Gurung, B. (2022). Relationship between Unemployment Rate and Economic Growth in Nepal: An Econometric Estimation. Turkish Journal of Agriculture - Food Science and Technology. https://doi.org/10.24925/turjaf.v10i8.1586-1593.5358.
Toader, E., Firtescu, B. N., Roman, A., & Anton, S. G. (2018). Impact of Information and Communication Technology Infrastructure on Economic Growth: An Empirical Assessment for the EU Countries. Sustainability, 10(10), 3750. https://doi.org/10.3390/su10103750
Vu Le, M., & Suruga, T. (2005). Foreign direct investment, public expenditure and economic growth: the empirical evidence for the period 1970–2001. Applied Economics Letters, 12(1), 45–49. https://doi.org/10.1080/1350485042000293130
Wulandari, D., Utomo, S., Narmaditya, B., & Kamaludin, M. (2019). Nexus between Inflation and Unemployment: Evidence from Indonesia. The Journal of Asian Finance, Economics and Business. https://doi.org/10.13106/jafeb.2019.vol6.no2.269.
Yousef, E. (2023). The Impact of Fiscal Policy Tools on Unemployment Rates in Jordan: Autoregressive Distributed Lag Approach. Jordan Journal of Economic Sciences. https://doi.org/10.35516/jjes.v10i1.843.