The Effect of Education and Skills on Unemployment: the Moderation Role of Economic Growth

Ardhita Eko Ginanjar; Albrian Fiky Prakoso; Wida Wulandari; Retno Mustika Dewi

doi:10.32424/1.erjpe.2024.19.2.4524

The Effect of Education and Skills on Unemployment: the Moderation Role of Economic Growth

Ardhita Eko Ginanjar, Albrian Fiky Prakoso, Wida Wulandari, Retno Mustika Dewi

Abstract

Aspects of community education, namely the average length of schooling (RLS) and Community Vocational Skills (CVS), are important to know community welfare, one of which is seen from the open unemployment rate (TPT). This study aims to analyze: (1) The relationship between RLS and TPT, (2) The effect of CVS on TPT, (3) The role of economic growth (EG) as a moderator between RLS and TPT, and (4) The role of economic growth (EG) as moderation between CVS and TPT, in Sidoarjo, East Java using 2019-2023 data. Using the Structural Equation Modeling (SEM) method, the findings in this study show that people's vocational skills are the main thing that affects TPT levels. However, The study notes that economic growth failed to moderate the relationship between RLS and CVS on TPT. Based on these findings, the government's role is very important in overcoming unemployment problems by improving vocational skills in the form of massive training for prospective workers and collaborating with related industries.

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References

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DOI: https://doi.org/10.32424/1.erjpe.2024.19.2.4524