The spatial spillover effects of small and medium-sized enterprise clusters and industrial estates on the unemployment rate: evidence from Java

integrated policies to address regional unemployment challenges considering the decentralized authority of each district/city.The significant spatial externalities of unemployment rates between regions and the repercussions of industrial areas' agglomeration in Java necessitate effective labour market integration and regional cooperation.The study demonstrates this need by examining the different labour absorption mechanisms between IEs and MSMEs for confronting unemployment challenges.