Analysis of Changes in the Unemployment Rate as a Result of the Human Development Index in Indonesia (Case Study 2010-2019)

Abstract

Unemployment occurs because of an imbalance in the labor market. The labor demand curve shows the number of workers employed by firms and has a negative slope at a certain wage level, while the labor supply curve shows the amount of labor that households will supply and has a positive slope to wages. The research objective was to determine the effect of the Human Development Index (HDI) on the unemployment rate in Indonesia in 2010-2019. The method used in this research is time-series data analysis method with quantitative methods. In this study, the results show that the relationship between the Human Development Index (HDI) and the unemployment rate is 0.960, which means that it has a very strong relationship. The influence of the contribution of the Human Development Index (HDI) variable in the unemployment rate is 82.1%. The Human Development Index (HDI) has a significant and negative effect at the 5% level on the unemployment rate. This is evidenced by a significance value.