Simultaneous Analysis Of Unemployment And Poverty In Aceh Province

Hendra Julianto; Lia Nazliana Nasution; Bakhtiar Efendi; Suhendi Suhendi

doi:10.55227/ijhess.v5i2.1906

Authors

Hendra Julianto Master Economics, Universitas Pembangunan Panca Budi, Medan, Indonesia
Lia Nazliana Nasution Master Economics, Universitas Pembangunan Panca Budi, Medan, Indonesia
Bakhtiar Efendi Master Economics, Universitas Pembangunan Panca Budi, Medan, Indonesia
Suhendi Suhendi Master Economics, Universitas Pembangunan Panca Budi, Medan, Indonesia

DOI:

https://doi.org/10.55227/ijhess.v5i2.1906

Keywords:

Unemployment, Poverty, Human Development Index, Minimum Wage, Aceh.

Abstract

This study aims to analyze the influence of the Human Development Index (HDI), Provincial Minimum Wage (PMW), and poverty rate on the unemployment rate in Aceh Province. Employing a multiple linear regression approach, the results reveal that only the poverty variable has a statistically significant impact on unemployment, while HDI and PMW do not exhibit meaningful effects. The estimated coefficient of determination (R²) is 0.3296, indicating that the model explains approximately 32.96% of the variation in unemployment. These findings suggest that high poverty levels in Aceh substantially contribute to increased unemployment, primarily due to limited access among the poor to education, vocational training, and business capital. The non-significance of HDI and PMW may be attributed to a mismatch between educational outcomes and labor market demands, as well as the dominance of the informal sector, which remains largely unaffected by minimum wage policies. This research contributes to the formulation of labor and poverty reduction policies in underdeveloped regions, emphasizing the need for structural interventions tailored to local economic characteristics. Policy recommendations include strengthening vocational education based on local potential, empowering low-income households economically, and enhancing oversight and adaptation of minimum wage implementation

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