Implementation of Hierarchical Agglomerative Clustering Method to East Kalimantan Unemployment Analysis

In East Kalimantan, the open unemployment rate for 2019 was 5.94%. It rose to 6.87% in 2020 and fell to 6.83% in 2022. The government needs information about unemployment conditions in each district/city in East Kalimantan Province. This study aims to group districts/cities in East Kalimantan based on the open unemployment rate indicators, namely the number of unemployed and the total labor force from 2017 to 2021. Applying the Hierarchical Agglomerative Clustering method uses an Average Linkage algorithm based on Euclidean, Manhattan, Minkowski, and Chebyshev distances. The clusters formed are evaluated using the Silhouette Coefficient method to find optimal clustering models. The test results show that the 2-cluster model is the optimum clustering, indicating that the unemployment rate data can be interpreted into two groups. Cluster 1 is a group of Regency/City with a low unemployment rate of 7 regions, and Cluster 2 is a group of Regency/City with a high unemployment rate of 3 regions. The results of this grouping also indicate that there have been the same conditions for five years. The government needs to be concerned about improving the standard of living and welfare of the community by reducing the open unemployment rate, especially in areas in Cluster 2 with a high open unemployment rate for five years.