THE ANALYSIS OF FACTORS INFLUENCING UNEMPLOYMENT IN INDONESIA DURING 1984-2013 THE MODEL OF VECTOR ERROR CORRECTION MODEL (VECM)

This study aims to examine the influence of Population Growth, Gross Domestic Product (GDP) and Interest Rate on the number of the unemployment in Indonesia during 1984-2013. The unemployment problem is a very complex and faced by the developing country. The data analysis technique used Vector Error Correction Model (VECM) regression method. The result shows GDP, interest rate, and total population significantly influence the number of the unemployment. The result of R-Squared testing shows that PDB, total population and interest rate give a contribution of 76% to the unemployment