SEIKO : Journal of Management & Business
Vol 9, No 2 (2026)

Analysis of the Impact of Economic Growth, the Human Development Index, the Labor Force, and Domestic Investment on Unemployment in East Java (2023–2025)

Ervi Ana Romadhona (Universitas Muhammadiyah Surakarta)
Maulidyah Indira Hasmarini (Universitas Muhammadiyah Surakarta)



Article Info

Publish Date
26 Oct 2026

Abstract

Unemployment remained one of the major labor market challenges in East Java Province despite the positive development of various economic indicators. This study aimed to examine the effects of economic growth, the Human Development Index, the labor force, and domestic investment on the unemployment rate in East Java during the 2023–2025 period. The study employed secondary data obtained from Statistics Indonesia, covering 38 regencies and municipalities. Panel data regression analysis was applied, while the most appropriate estimation model was selected through the Chow test and Hausman test, which identified the Fixed Effect Model as the best-fitting model. The findings revealed that all independent variables jointly influenced the unemployment rate. Partially, domestic investment had a negative and statistically significant effect on unemployment, whereas economic growth, the Human Development Index, and the labor force did not show significant effects. The model was able to explain 91.13 percent of the variation in the unemployment rate. These findings indicated that increasing domestic investment contributed to greater labor absorption and had the potential to reduce unemployment in East Java Province.

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Journal Info

Abbrev

seiko

Publisher

Subject

Social Sciences

Description

The Journal Management & Business (SEJaman) provides a forum for academics and professionals to share the latest developments and advances in knowledge and practice of management business both theory and practices. It aims to foster the exchange of ideas on a range of important management subjects ...