Analysis of the Effects of Education Level, Average Wages, Employment Opportunities, and Economic Growth on Educated Unemployment in West Sumatra, 2017–2023

Abstract

This study analyzes the influence of education level, average wages, employment opportunities, and economic growth on educated unemployment in West Sumatra from 2017 to 2023. The quantitative method used panel data combining time series and cross-sectional data of 19 districts/cities, analyzed using a Fixed Effect regression model. Results indicate that all independent variables significantly affect educated unemployment jointly, with an R-squared of 96.82%. Partially, education level and employment opportunities have significant positive effects, while economic growth has a significant negative effect. Average wages have a positive but not significant effect. These findings indicate a mismatch between educational attainment and labor market needs in the region, highlighting the need for enhanced graduate skill development and policies that steer economic growth toward creating jobs suitable for educated workers. This study provides a basis for regional government policy recommendations to reduce educated unemployment and improve labor absorption in West Sumatra.