The effect of online transportation system on unemployment rate and public welfare in Indonesia

Harahap, Darwis and Alfadri, Ferri and Nasution, Yenni Samri Juliati and Saragih, Nasir Ahmad Khan (2021) The effect of online transportation system on unemployment rate and public welfare in Indonesia. At-Tijaroh: Jurnal Ilmu Manajemen dan Bisnis Islam, 7 (1). pp. 112-125. ISSN 2356-492X (printed), 2549-9270 (online)

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Abstract

The aim of this study was to examine the effect of online transportation system on the unemployment and public welfare in Medan City, Indonesia. Technology-based business practices in the industrial era 4.0 require certain skills in the area of works. Furthermore, changes to the technology system which initially absorbed more workers tend to decrease due to it replace human role. Consequently, the level of public welfare will also decline. This study was carried out at PT. GO-JEK Indonesia using the Structural Equation Modeling (SEM) method. The model used was a loading factor constructed from each indicator. The results of this study showed that an online transportation has effect on the reduction of the unemployment rate. Furthermore, it showed that this system may improve the welfare of the public. Therefore, online transportation has a positive effect on reducing unemployment and improving public welfare.

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