ABSTRACT

This study aimed to investigate the impact of technological innovation on unemployment in Indonesia. TAR and ARIMA were the methods used in this study. The analysis found that there is a relationship between LFP and positive relationship with GDPC, which proves that the higher the GDP, the higher the absorption of employment. Also, a negative relationship between PAT and LFP establishes, which proves that technological innovation in Indonesia suppresses employment opportunities and increases unemployment. Furthermore, there is an inverse relationship between the direction of population growth and that of work participation. Thus, higher population growth will increase the level of unemployment in Indonesia.