Abstract The problem of unemployment is a very complex problem that is experienced by each developing country. In the macro economy, unemployment became the fundamental problems in both the short and long term. Indonesia is a country with a high population, Indonesia is the 4th after India although Indonesia has an abundance of natural resources. This should make the economy and economic growth in Indonesia increased. However, in fact, many Indonesian people do not have jobs or in other words become unemployed. This study aims to determine the factors that affect unemployment in Indonesia. Then the independent variables used are population, GDP, and interest rates, while the dependent variable is unemployment. In this paper, an analysis tool used is regression analysis Vector Error Correction Model (VECM). The analysis showed that the interest rate and the number of population statistically significant affect unemployment. R-Squared results show that the above variables affects as much as 76% and the remaining 24% is influenced by other variables outside the model. So that the interest rate and the number of the population affect unemployment.