THE MEDIATION ROLE OF THE HUMAN DEVELOPMENT INDEX IN ECONOMIC GROWTH AND LABOR FORCE PARTICIPATION IN UNEMPLOYMENT: EVIDENCE FROM EAST JAVA PROVINCE DATA

Abstract

Every developed and developing country is experiencing economic problems. The good and bad of a country's economy, one of which can be seen from the unemployment rate. The research methodology used is associative and explanatory research with a quantitative approach. This study consists of the independent variables in the form of Economic Growth and Labor Force Participation Rate, the dependent variable is in the form of unemployment, while the intervening variable is in the form of the Human Development Index (IPM). The object of this research is 38 regencies/cities in East Java Province. With a period from 2017 to 2022. The type of data used is in the form of secondary data which includes journals and websites such as the Central Bureau of Statistics or BPS Statistik Indonesia. The data analysis method used is PLS-SEM (Partial Least Square Path Modeling) with the help of SmartPLS 3.0. Based on the data and results of research that has been done, it was found that economic growth has a positive and significant effect on HDI (Human Development Index), economic growth has a significant positive effect on unemployment, the labor force participation rate has a negative and insignificant effect on HDI (development index). Man). The labor force participation rate has a negative and significant effect on unemployment, and the HDI (Human Development Index) has a negative and significant effect on unemployment.