The Effect of Economic Growth of the Primary Sector, Secondary Sector, and Terrier Sector on Open Unemployment Rate in Gorontalo Province 2015-2019
Keywords:
Unemployment, Primary, Secondary, TertiarySynopsis
Unemployment is an annual issue in the economic development of Gorontalo Province. This can be seen from the fluctuating unemployment rate over the last eleven years which is dominated by highly educated workers. Unemployment is influenced by many factors, but in this study, we will try to comprehensively examine the unemployment problem in Gorontalo Province which is influenced by economic growth in the primary sector, secondary sector, and tertiary sector during the last five years by using panel data in six districts/cities from 2015-2015. 2019. The data used is secondary data obtained from the Central Statistics Agency. Empirical results from this study indicate that based on the random effect model (Random Effect Model) that the growth of the primary sector has a negative and significant effect on open unemployment. This is because the primary sector
is dominated by the agricultural sector and does not require higher education requirements for workers. The growth of the secondary sector has a positive but not significant effect on unemployment because it contributes only 15.43 percent in the aggregate, while the growth of the tertiary sector has a negative and significant effect on unemployment because it consists of 11 categories of business fields that allow absorbing a lot of workers. Simultaneously, the three variables tested showed a significant effect on the unemployment rate in six districts/cities over the last five years.