<![CDATA[Objective: This study examines the effects of human capital and labor market conditions on regional economic growth in East Java Province, Indonesia. The research focuses on the influence of average years of schooling and the open unemployment rate on economic growth across regencies/cities during 2017–2022. The study is relevant because sustainable regional growth depends not only on economic output, but also on education quality and employment absorption capacity. Design/Methods/Approach: This study employs a quantitative approach using balanced panel data from 38 regencies/cities in East Java Province during 2017–2022, resulting in 228 observations. We obtained secondary data from the Central Statistics Agency (BPS). We applied panel data regression analysis and selected the model using the Chow test and the Lagrange Multiplier (LM) test. We also ran diagnostic tests for multicollinearity and heteroskedasticity. Findings: The results show that average years of schooling have a positive and significant effect on regional economic growth, while the open unemployment rate has a negative and significant effect. The findings indicate that education strengthens labor productivity and regional economic capacity, whereas high unemployment weakens economic performance through underutilized labor resources. Originality/Value: This study contributes to regional economics literature by providing empirical evidence at the regency/city level using panel data analysis. The research captures regional economic heterogeneity more specifically than studies using national or provincial aggregates. Practical/Policy Implication: The findings suggest that local governments should strengthen investment in education while expanding productive employment opportunities. Policies that improve the linkage between education and labor market needs are important for supporting more inclusive and sustainable regional economic growth.]]>
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