ANALYSIS THE NUMBER OF EMPLOYMENT,

UNEMPLOYMENT, AND LABOR FORCE IN THE ACEH

PROVINCE, INDONESIA

AHWAZ ZABRAN MACHMUD

INTERNATIONAL ACCOUNTING PROGRAM – IBEP, FACULTY OF

ECONOMICS AND BUSINESS
UNIVERSITY OF SYIAH KUALA - INDONESIA
ZABRAN.21@MHS.UNSYIAH.AC.ID
 ABSTRACT

This study aims to determine the description of community activities in achieving

economic prosperity and smoothness based on the population of 15 years and over
which includes the working group, unemployment, and labor force during 2010 and
2020 in the province of Aceh, and also to determine and compare the number of
dominant working groups and unemployed. And also to find out the effect of
workers, unemployment, the labor force on the employment situation. The method
used is descriptive quantitative analysis and tools data used by Eviews 12. Data
obtained from the Central Bureau of Statistics and the National Socio-Economic
Survey (SUSENAS) using the classic assumption test and the regression method for
panel data, namely Common Effect. The finding shows that the province of Aceh has
more people who have jobs than people who are unemployed, and this research also
shows that Aceh province has more people who have jobs than unemployed people,
which means that Aceh province does not have a major problem in the employment
sector.
Keywords: Employment, Welfare, Economy
 INTRODUCTION
Employment is a description of community activities in achieving prosperity and
smooth economy. Employment is an important aspect, not only to achieve individual
satisfaction, but also to fulfill the household economy and community welfare.
In a community group, most of them, especially those of working age, are
expected to be involved in certain jobs or to be active in economic activities. In
Indonesia, the working age used for the purposes of collecting employment data is 15
years of age or older.
 LITERATURE REVIEW
- Employment Theory
• Adam Smith's Classical Theory
Adam Smith (1729-1790) was the main character of the economic school which became known
as the classical school. In this case, Adam Smith's classical theory also sees that the effective
allocation of human resources is the starter of economic growth. After the economy grows, new
(physical) capital accumulation is needed to keep the economy growing.
• Malthusian theory
Thomas Robert Malthus (1766-1834) is considered a classical thinker who is very instrumental
in the development of economic thought. Thomas Robert Malthus revealed that humans are
developing much faster than the production of agricultural products to meet human needs.
Humans develop geometrically, while food production only increases arithmetically.
• Keynesian Theory
John Maynard Keynes (1883-1946) argued that in reality, the labor market does not work in
accordance with a classic view. Wherever the workers have some kind of a labor union that will
try to fight for the interests of workers from a decrease in the level of wages.

• Harrod-Domar theory
The Harrod-Domar theory (1946) is known as the theory of economic growth. According to this
theory, investment does not only create demand but also increases capacity production.
 MATERIALS AND METHOD
Regression using panel data. First, there are several advantages to using panel data.
First, panel data which is a combination of two time series and cross section data is
able to provide more data so that it will produce a greater degree of freedom.
In this analysis using quantitative descriptive method, namely the analysis used to
reveal or describe something about the situation that is in accordance with the facts
and which is accurate from the place under study. Management of data in this study
using the program Eviews12.
- Model equation
Yi = β0 + β1.Xi + β2.Xi+ ei
i = Unit for regencies/cities (23 regencies/cities)
t = Unit for time (2010-2020)
Y = Labor Force
X1 = Employment
X2 = Unemployment
• Panel Data Regression
Panel Data Regression is a combination of cross-section data and time-series data,
where the same cross-section unit is measured at different times.
- F test
The use of the F test to determine the significance or non-significance of an
independent variable together in influencing the dependent variable
- T test
The function of the t test is to determine the significance of an individual
independent variable in influencing the dependent variable.
• Classic assumption test
A model is said to be good as a predictive tool if it has unbiased properties the best
linear estimator.
- Normality Test
A normality test is a test carried out with the aim of assessing the distribution of data
in a group of data or variables, whether the distribution of the data is normally
distributed or not.
- Multicollinearity Test
Multicollinearity test aims to test whether the regression model found the existence
of correlation between independent variables.
- Autocorrelation Test
Autocorrelation test aims to test whether in a linear
regression model there is a correlation between the
"bullying" error in period t and the error in period t-1
(previous).

- Heteroscedasticity Test
Heteroscedasticity test aims to test whether in the
regression model there is an inequality of variance from
the residuals of one observation to another observation.
 RESULTS AND DISCUSSIONS
Panel Data Regression

X1= Employment
X2= Unemployment

R-Square is the magnitude of the influence or ability of independent variables simultaneously in

explaining the dependent variable.In the panel data regression above, the R Square value is 0.93,
which means that the independent variable is very strong in explaining the dependent variable. And
from the table above that, the adjusted R-squared value is 0.92, which means that the independent
variable is very strong in explaining the dependent variable. And also From the table above that the
F-statistics value is 62.64 and the F-Table is 0.99, then Ha is accepted. In addition, From the table
above, the value of the worker variable is 10.3, where 10.3>2.9(t-table) which means that the
worker variable affects the labor force and the value of the unemployment variable is 0.04 <2.9(t-
table) which means that the unemployment variable not affects the labor force.
• Normality Test
If Prob jarque bera > confidence level (0.05) then Ho is rejected and Ha is accepted or normally
distributed. From the histogram table above, it can be seen that the value of JB is 17.00, which means Ha
is accepted and Ho is rejected.
• Multicollinearity Test
The above shows that the value of Centered VIF for both X1 and X2 is 1.225162 where the value is less
than 10, it can be stated that there is no multicollinearity problem in the prediction model.
• Heteroscedasticity Test
The results of the Breusch-Pagan-Godfrey test show that the probability value of F-Statistics (F-
Calculate) is greater than Alpha (0.05) which is 0.89, meaning that the variable x is greater than Alpha
(0.05) so it can be concluded, H1 is rejected and H0 is accepted. There is no heteroscedasticity problem in
this data.
• Autocorrelation Test
From the output, the DW-stat value is 1.76 . The dL value at n=11, k=2 and = is 0.75 and the dU value is
1.57. According to the formula du < d < 4-dU, the declared model does not have autocorrelation disorder.
• From the estimation results:
a) Coefficient of Worker group variable (X1)
Worker group has a significant positive effect on the labor force. When the Worker group increases by
1%, the amount of labor force also increased by 0,93%.
b) Coefficient of unemployment group (X2)
Unemployment group has a significant positive effect on labor force When Unemployment group
increases by 1%, then labor force increases as much as 0,04%
 CONCLUSION
In this study it was concluded that the workforce has an effect on the workforce
and also has a major impact on labor conditions. from this study we can also
conclude that there are more workers than unemployed, and this shows that people in
Aceh are enthusiastic to work
Based on this research we also know that in the province of Aceh there is also
unemployment both from the male group and from the female group, but we are
grateful that there is less unemployment than people who have jobs in Aceh, but this
problem cannot also be considered a trivial matter. Unemployment in Aceh is not
necessarily people who do not have a job, but it is also caused by technology that
continues to develop and change, people who just resigned and haven't got a job,
jobs that can only be done at certain times, and underemployed.
To overcome the unemployment problem, the government can issue monetary
policy, fiscal policy, provide subsidies in the form of tax breaks, extend employment
benefits, and provide a platform for providing job vacancies.
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