The Effect of Poverty on Development Growth in Sidoarjo Regency

Abstract

This study investigates the impact of unemployment and poverty rates on economic growth in Sidoarjo District. To overcome the problem of poverty, the Sidoarjo Regency Government has implemented Regional Regulation Number 2 of 2016, which aims to reduce poverty. Poverty is considered one of the factors that hinder development in Sidoarjo Regency. Several factors affect the open unemployment rate, including economic growth, poverty, and the human development index. This study aims to identify the influence of independent variables such as economic growth, poverty rate, and human development index on the open unemployment rate in Sidoarjo Regency. The Sidoarjo Regency Government must make a strategy to reduce unemployment by creating collaboration between the Cooperative & MSME Office, the Industry Office, and the Trade Office through various empowerment programs. Renegotiation must also be done with factory owners in the percentage of workers locally and outside the region.