WHAT INFLUENCES UNEMPLOYMENT IN ACEH PROVINCE

Indonesia is one of the countries with the largest population in the world and is a big capital for Indonesia in development. A large population if not managed properly will cause unemployment problems. The most remote province of Sumatra, namely the province of Aceh, is one of the provinces that has a high open unemployment rate. Thus, it is necessary to analyze the factors that influence the open unemployment rate. This study aims to analyze the effect of the provincial minimum wage, economic growth and inflation on the open unemployment rate in Aceh Barat district. The type of research used is quantitative research using multiple linear regression method with time series data (time series) for 2012-2021, namely 10 years including provincial minimum wage data, economic growth data, inflation data, open unemployment rate data, and processed using the SPSS program. 25. The results of this study indicate that simultaneously the F test of the provincial minimum wage, economic growth and inflation together affects the level of open unemployment in Aceh Barat district. While partially, namely the t test, it is concluded that the provincial minimum wage has a positive and significant effect on the level of open unemployment, economic growth has a negative and significant effect on the unemployment rate and inflation has a negative and significant effect on the open unemployment rate in Aceh Barat district.


A. Introduction
BPS defines unemployed as people who enter the labor force (15-64 years) who are looking for work and have not got it, where this unemployment is one of the problems in economic development.
One of the provinces in Indonesia which is located at the tip of Sumatra, namely the province of Aceh, is experiencing quite complex problems in terms of overcoming unemployment in this province. Even this province has been named as one of the poorest provinces and has a high unemployment rate on the island of Sumatra.
Based on previous research, FC Irawan (2022)  Vol. 3, Issues. 4, Dec 2022P-ISSN: 2807-193X | E-ISSN: 2746 What Influences Unemployment in Aceh Province [299] (2022) One of the causes of unemployment is wage rigidity, namely the failure of wages to adjust until the supply of labor equals the demand. Real wages do change to balance supply and demand, but wages are not always flexible. Sometimes real wages are stuck at the market clearing level or the equilibrium level. When the real wage is above the level that balances supply and demand, the quantity of labor supplied exceeds the quantity demanded. Rigidity in real wages reduces the rate of job finding and increases unemployment. Unemployment caused by wage rigidity and the rationing of jobs is called structural unemployment. When the government maintains that wages do not reach an equilibrium level, it can lead to wage rigidity. The development of minimum wages and inflation in Aceh Province can be seen in Table 1.2 below:  (Legal aspects of wages, 2006), what is meant by wages are: First the rights of workers/laborers received and expressed in the form of money as compensation from employers or employers to workers/laborers which are determined and paid according to a work agreement, agreement, or laws and regulations, including allowances for workers/laborers and their families for work and/or services that have been or will be performed. Meanwhile, according to ministerial regulation number 15 of 2018, the provincial minimum wage, hereinafter abbreviated as UMP, is the wage that applies to all districts/cities within the territory of 1 (one) province. According to Government Regulation no. 25 ( of 2000 concerning government authority and provincial authority as an autonomous region replaced the UMR with the Provincial Minimum Wage (UMP) or Regency/Municipal Minimum Wage (UMK). The minimum wage is the lowest monthly wage consisting of basic wages and regional allowances. Law The minimum wage law sets the level of wages that companies must pay their employees. Economists believe that the minimum wage has the greatest impact on youth unemployment. The equilibrium wage of young workers tends to be low because they are less educated or less experienced and therefore tend to have lower marginal productivity (Maulana 2013, p. 17) According to (Sadono Sukirno: 2010) wages are divided into two as follows: Nominal wages are the amount of money received by workers from employers as payment for the mental and physical energy of workers used in a production process, while the real wage is the level of wages of workers as measured from the point of view of the ability of these wages to buy the goods and services needed to meet the needs of workers. b) Aceh UMP is the lowest monthly wage for working seven hours per day or 40 hours per week for a 6-day work system and 8 hours working per day or 40 hours per week for a 5-day work system.
c) The regulations apply to all workers/laborers and employees in both private companies, State Owned Enterprises/Regional Owned Enterprises and other social enterprises in Aceh.

Economic growth
According to Mahyudi (2004, h.1) economic growth is an increase or change in national income in a certain year, without paying attention to population growth and other aspects. Economic growth is marked by an increase in national production or in general terms is an increase in Gross National Product and more precisely is Net National Product. Economic growth, as measured by the development of goods and services or National Income, is very necessary because there are two very decisive factors, namely the factor of increasing population from year to year and increasing levels of social welfare as a result of development itself. (Irawan and Suparmoko, 2002).
Economic growth can also be expressed as an increase in the number of commodities that can be used or obtained in an area. This concept concerns the influence of trade, namely the ability to obtain commodities as a final supply of increased output through exchanges between regions. Regional economic growth is an increase in people's income that occurs in a region, namely an increase in all value added (value added) that occurs in that region. (Tarigan 2006). The factors that influence Indonesia's economic international trade and regional or world economic growth. According to (Todaro, 2000), there are three main factors or components in the economic growth of each nation, namely; First, capital accumulation, including all new investments in the form of land, fiscal equipment and human resources. Second, population and labor force growth has traditionally been considered one of the positive factors that spur economic growth. Finally, technological progress (technological progress).
Technological advances occur because of the discovery of new ways or improvements to old ways of handling traditional jobs.

Inflation
Inflation is a symptom indicating a continuous increase in the general price level.
This shows that if there is a price increase that is only temporary, then the temporary price increase cannot be said to be inflation. The inflation rate that occurs in a country is one measure to measure the merits of the economic problems faced by a country.
For a country, a good economic condition is generally represented by a relatively low and controlled inflation rate. The inflation rate is one of the fundamental indicators of the economy that reflects the level of GDP and GNP into its true value (Maulana, 2013).
Inflation can affect income distribution, allocation of production factors and national products. The effect on income (equity effect) The effect on income is not evenly distributed, some are harmed but some are benefited by inflation. Effects on efficiency (efficiency effects) Inflation can also change the pattern of allocation of factors of production. The effect on output (output effects) The intensity of the inflation effect varies, depending on whether inflation is accompanied by an increase in production and employment or not (Norpirin, 2011).

Open Unemployment and its Relation to UMP, Economic Growth & Inflation
Unemployed or unemployed people are those who do not have a job and are actively looking for work. The unemployed category is usually those who do not have a job at the age and length of service. Working age is usually the age that is not in school but above the age of children (relatively I over 6-18 years, namely the education period from elementary school to high school graduation), while those over the age of 18 but still at school can be categorized as unemployed even for there are still many who debate it (Putong, 2013). Open unemployment, unemployment is created due to the addition of job vacancies that are lower than the increase in labor. As a result, an

What Influences Unemployment in Aceh Province
[303] increasing number of workers in the economy are unable to find work. The effect of this situation is that in a fairly long period of time they do not work. So they are unemployed for real and full time. The open unemployment rate is the percentage of the number of unemployed to the total labor force. The Labor Force is the population of working age (15 years and over) who are working or have jobs but are temporarily not working, and are unemployed. Unemployment, namely: (1) residents who are actively looking for work, (2) residents who are preparing for new businesses/jobs, (3) residents who are not looking for work because they feel it is impossible to get work, (4) groups of residents who are not actively looking for work with reasons already have a job but have not started working (BPS, 2019). In addition, unemployment creates various economic and social problems for those who experience it. The lack of income causes the unemployed to reduce consumption spending. In addition, it can disrupt the health level of the family. Prolonged unemployment has a bad psychological effect on the unemployed and their families. If the state of unemployment in a country is very bad, political and social disturbances always prevail and have an adverse effect on the welfare of the people and prospects for economic development in the long term. The problem of unemployment is a problem that has a very bad effect on the economy and society, and therefore continuous efforts must be made to overcome it.
Workers who set their minimum wage rate at a certain wage level, if all the wages offered are below that wage level, someone will refuse to get that wage and consequently cause unemployment. If the wage set in an area is too low, it will result in a high number of unemployed in that area. However, from the entrepreneur's point of view, if wages increase and the costs incurred are high enough, it will reduce spending efficiency, so employers will adopt a policy of reducing labor to reduce production costs. This will result in an increase in unemployment. An increase in wages has two conflicting effects on the supply of labour.
According to Kurniawan (2013) the relationship between economic growth and unemployment is that increased economic growth in a country has an impact on the rapid flow of capital entering the country so that it provides employment opportunities which are marked by the number of new business sectors whose systems are laborintensive oriented, thus reducing the number of unemployed. in the country. In a simple sense, growth in the macro economy is the addition of GDP (Gross Domestic Product) which also means an increase in national income (Tambunan, 2003: 41).
Economic growth is a very important factor in assessing the performance of an technique used in this study was literature study as supporting data also obtained from journals, as well as internet browsing related to the problem being researched. For the purposes of analysis, the author collects data by direct research to the relevant offices in order to obtain accurate data. In this analysis it was carried out with the help of the SPSS 25 program. In terms of testing the hypotheses that had been set before, the researchers used multiple regression analysis. Multiple regression is a regression model that consists of more than one independent variable. The general form of multiple regression with a number of k independent variables can be written as follows (Widarjono 2013

Finding
West Aceh Regency is one of the districts within the province of Aceh which is located on the west and south coast of the island of Sumatra which is directly adjacent to the districts of Aceh Jaya and Pidie in the north, with Nagan Raya Regency and the Indonesian Ocean in the south. while to the east West Aceh District is bordered by Nagan Raya and Central Aceh Regencies. While astronomically West Aceh is located between 04о06 -04о47 north latitude and 95о52 -96о30 east longitude with an area  165.031. This shows that the Aceh provincial government is taking the right steps for the welfare of its people by increasing the amount of the provincial minimum wage every year. Increasing the amount of the minimum wage is expected to motivate people, especially to work and can reduce the unemployment rate in Aceh Province.

Development of Economic Growth in West Aceh District
The following is data on economic growth in West Aceh Regency in the 2012-2021 time series. in the Foodstuffs, Clothing and Housing groups. and in the last year it was recorded, namely 2021 the inflation rate was 2.07 percent The following is the inflation rate data for West Aceh district which is recorded at the Central Bureau of Statistics for West Aceh Regency. West Aceh District is to see the magnitude of the parameters of each of these variables, besides that it is also to see whether or not the relationship between these variables is close and at the same time to find out the percentage that is influenced by the variable being analysis.   Provincial minimum wages, economic growth, and inflation can theoretically affect the open unemployment rate. However, at certain phenomena and levels, the provincial minimum wage may also have no effect. There is an open unemployment rate because workers have their own minimum wage level. economic growth and also reducing the

What Influences Unemployment in Aceh Province
[311] unemployment rate is caused by an increase in the production of goods and services which indicates that economic growth will also require more labor (labor) so that unemployment can be absorbed.