The Influence of Economic Growth and The Human Development Index (HDI) on the Unemployment Rate in Indonesia

Elsa Adelia: Faculty of Economics, University of Darul 'Ulum Jombang. Born in Kediri, February 11, 1998. The Effect of Economic Growth and Human Development Index (HDI) on Unemployment Rates in Indonesia. Chief Advisor: Dr. H. Muchtar, SE., M.Sc. Advisory Commission: Dr. Junaedi, SE., M.Sc.
Unemployment is a serious problem in the economy that is experienced by almost every country. There are several indicators that affect the unemployment rate, including population growth and the human development index (IPM). This study aims to identify and analyze whether economic growth and the human development index (HDI) partially and simultaneously affect the unemployment rate in Indonesia. This type of research is quantitative research using secondary data in the form of time series data for the period 2013-2022 and cross sectional data, namely 34 provinces in Indonesia, which come from the Indonesian Central Bureau of Statistics (BPS). The method used is multiple linear regression analysis using Eviews 12 software. The regression model used is the Fixed Effect Model (FEM) using the classical assumption test, T test, F test, and R-Squared test.
The test results through the F test state that economic growth and the human development index (IPM) simultaneously have a significant influence on the unemployment rate. Meanwhile, the test results for the T test stated that economic growth and the human development index (IPM) had a negative and significant effect on the unemployment rate.
Keywords: Economic Growth, Human Development Index, Unemployment Rate, Purposive Sampling, and Eviews.