The impact of unemployment and human development on poverty reduction: Evidence from Dairi Regency, North Sumatra

Abstract

This study investigates the effects of unemployment and the Human Development Index (HDI) on poverty reduction in Dairi Regency, North Sumatra, Indonesia, from 2009 to 2023. Using time-series secondary data from Statistics Indonesia (BPS), the research applies multiple linear regression analysis. The findings reveal that unemployment positively influences poverty, indicating that higher unemployment rates exacerbate poverty levels. In contrast, HDI negatively impacts poverty, suggesting that advancements in human development contribute significantly to poverty reduction. These results underscore the necessity of targeted employment strategies and investments in education, healthcare, and economic empowerment. Policymakers should prioritize addressing unemployment and enhancing human development as key drivers of poverty alleviation in Dairi Regency and similar contexts.