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October 15, 2025International Journal of Business and Applied Economics0 citations

Analysis of Economic Growth and Investment on Educated Unemployment: The Role of Inflation as a Moderating Variable in East Java

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RNRiza NurainiMWMohammad Wahed

Key Points

  • Economic growth negatively influences educated unemployment in East Java, highlighting the need for better employment strategies.
  • Investment positively affects educated unemployment, suggesting that increased funding may create more job opportunities for graduates.
  • Moderate Regression Analysis was utilized to assess the relationships between economic growth, investment, and educated unemployment over 17 years.
  • Findings indicate inflation does not moderate the relationships between economic growth or investment and educated unemployment.

Abstract

Educated unemployment has now emerged as a major challenge in East Java Province, being one of the regions with the largest population and number of graduates within Indonesia. This study aims to analyze the effect of economic growth and investment on educated unemployment in East Java Province. The independent variables are economic growth and investment, with inflation employed as a moderating variable. A quantitative approach was applied thorugh the Moderate Regression Analysis (MRA) approach covering the period 2007–2024. The findings reveal that economic growth exerts a significant negative influence, whereas investment demonstrates a significant positive influence. Meanwhile, inflation is unable to moderate the effect of economic growth on educated unemployment, nor can it moderate the relationship between investment and educated unemployment.

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Cite This Study

Nuraini et al. (2025) studied this question.

synapsesocial.com/papers/68f01110f081da0584b567cbhttps://doi.org/10.55927/ijbae.v4i5.404
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