Root Cause Analysis and Handling Strategy for Unemployment in Karanganyar, Pekalongan Regency

Abstract

Unemployment is a serious challenge in the social and economic context of various regions in Indonesia, including in Kabupaten Pekalongan, Central Java. One of the subdistricts with the highest open unemployment rate in Pekalongan Regency is Karanganyar. The high unemployment rate in Karanganyar has a negative impact on the welfare and quality of life of its residents, as well as increasing the risk of social problems such as crime and alcohol abuse. This study aims to understand the root causes of the high unemployment rate in Karanganyar, evaluate its impact, and formulate recommendations for effective policies and programs to address the problem. This study fills a knowledge gap by focusing on the causes and solutions of unemployment in rural areas such as Karanganyar, which have been under-researched. From a theoretical perspective, factors such as slow economic growth, the dominance of the agricultural sector without optimal added value, low education levels, and suboptimal job training programs are the main focus. This research is expected to make a strategic contribution to the local government in formulating unemployment management policies that are contextual to the conditions of Karanganyar. In this research, a qualitative approach was used with data collection techniques through surveys, documentation, and interviews. The results showed that the unemployment rate in Pekalongan Regency fluctuated, with Pekalongan City's TPT reaching 7.02% in 2020. The results of this research are expected to provide an important contribution to efforts to improve economic welfare and productivity in Karanganyar, as well as a reference for other regions experiencing similar problems.

Keywords: Unemployment, Causes, Solutions, Factors.