DO MINIMUM WAGE, EDUCATION, AND ECONOMIC GROWTH MATTER? ANALYSIS OF UNEMPLOYMENT RATE IN NORTH SULAWESI INDONESIA

Abstract This study examines the effects of minimum wage, average education, and economic growth levels on unemployment rates in North Sulawesi Province in Indonesia. The data used for this study are retrieved from the Central Statistics Agency of North Sulawesi Province. This study employs panel data regression model, particularly the random effect model (REM). We obtained the following results: (1) the minimum wage level has a negative and significant relationship to the unemployment rate; (2) the average education level has a positive and significant relationship to the unemployment rate; (3) while the economic growth has a negative and significant relationship to the unemployment rate. Notably, the positive impact of education level on unemployment rate provides interesting evidence, suggesting the need to improve the quality of graduates to meet the industry needs.