Impact of Economic Growth, Human Capital, and Population Growth on Unemployment Rates in West Sumatra Province

Abstract

This study aims to analyze the influence of economic growth, human capital, and population growth on the unemployment rate in West Sumatra Province. The research employs a quantitative approach using panel data regression analysis, based on time series data from 2020 to 2024 and cross-sectional data from 19 districts and cities. The results show that simultaneously, all three variables affect the unemployment rate. Partially, economic growth has a significant negative effect on unemployment, while human capital and population growth show negative but statistically insignificant effects. These findings indicate that increasing economic growth plays a crucial role in reducing unemployment, whereas improvements in human capital and controlling population growth have not yet demonstrated a significant direct impact during the study period.