Simultaneous Effect Of Macroeconomic Variables On Human Development Index (HDI) And Employment Opportunities In Central Aceh District

Ichra Vinna; Rusiadi Rusiadi; Lia Nazliana Nasution; Bakhtiar Efendi; Suhendi Suhendi

doi:10.55227/ijhess.v5i2.1909

Authors

Ichra Vinna Master Economics, Universitas Pembangunan Panca Budi, Medan, Indonesia
Rusiadi Rusiadi 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.v5i2.1909

Keywords:

HDI, Employment Opportunities, GRDP, MSMEs, UMP, Dependency Ratio,

Abstract

This research investigates how Gross Regional Domestic Product (GRDP), employment opportunities, Micro, Small, and Medium Enterprises (MSMEs), and the provincial minimum wage (UMP) impact the Human Development Index (HDI). It also explores the effects of population size, dependency ratio, and HDI on job availability in Central Aceh District. Employing a quantitative approach through multiple linear regression analysis, the study finds that both GRDP and employment opportunities significantly contribute to HDI, while MSMEs and UMP show no notable effect. Conversely, population size has a significant effect on employment opportunities, but the dependency ratio and HDI do not appear to influence them meaningfully. These results highlight that fostering human development in the region is more effectively achieved through promoting economic growth and increasing employment capacity. However, the contributions of MSMEs and wage regulations remain limited and require further policy support. Additionally, the study points out that improvements in HDI may not automatically translate into higher employment absorption if the local labor market structure is not aligned. The findings offer valuable insights for policymakers in formulating more precise and data-driven regional development policies

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