DEMOGRAPHIC, ECONOMIC, AND HUMAN WELL-BEING: THEIR INFLUENCE ON UNEMPLOYMENT RATE OF 34 PROVINCES IN INDONESIA
Keywords:
Demographic Dividend, Dependency Ratio, Economic Growth, Human Development Index, Open Unemployment RateAbstract
The main objective of this research is to examine the influence of Demographic Dividend, Economic Growth, and Human Development Index on Unemployment Rate in Indonesia. This study utilized a quantitative approach and a descriptive research method. It focused on 34 Indonesian provinces over a 5-year period (2018-2022). Open unemployment rate is the dependent variable, while the three independent variables consist of demographic dividend (proxied by the dependency ratio), economic growth (proxied by the GRDP growth rate), and the Human Development Index. To address the research objectives and test the hypotheses, a panel data regression analysis method is used. The results revealed that all variables had a significant impact on the open unemployment rate. Demographic dividend and economic growth had a significant negative impact, while the Human Development Index had a significant positive impact. This research can assist the government and relevant organizations in crafting more effective economic and employment policies. For instance, understanding the positive impact of the Human Development Index can aid the government in enhancing the quality of life for the population, while grasping the negative impact of the demographic dividend (dependency ratio) on unemployment can aid in workforce training and job creation planning.
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