Imamudin Yuliadi
Master of Economics, Universitas Muhammadiyah Yogyakarta, Yogyakarta, Indonesia

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From The Job Market To Poverty: An Analysis of Economic Growth Determinants In Java Aulia Dwi Rahayu; Agus Tri Basuki; Imamudin Yuliadi
International Journal of Educational Research & Social Sciences Vol. 7 No. 5 (2026): October 2026
Publisher : CV. Inara in Colaboration with www.stie-sampit.ac.id

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.51601/ijersc.v7i5.1094

Abstract

Economic growth is one of the important indicators in describing the performance of regional development, especially in the Java Island region which has a large contribution to the Indonesian economy. However, differences in labor market conditions, price stability, quality of human resources, investment, government spending, and poverty can cause variations in economic growth between regions. This study aims to analyze the influence of the Open Unemployment Rate, inflation, investment, Human Development Index, local government capital expenditure, and the number of poor people on economic growth in six provinces on the island of Java during the period 2015–2025. The research uses panel data analyzed using the Fixed Effect Model (FEM). The results of the study show that the Open Unemployment Rate, Inflation and the Number of the Poor have a negative and significant effect on economic growth, respectively. The Human Development Index has a positive and significant effect. The number of poor people has a negative and significant effect. Meanwhile, investment and capital expenditure do not show a significant influence. In addition, all independent variables in this study simultaneously had a significant effect on economic growth from the R2 value, it was shown that the independent variable was able to explain 65.9% of the variation in economic growth. The findings show that the variation in economic growth in six provinces of Java Island is related to labor market conditions, price stability, quality of human development, and socio-economic conditions of the community.