The unemployment issue and its impact on sumatera Island

This study aims to examine the effect of unemployment on poverty and the human development index in 8 selected Sumatran provinces. For this reason, this study uses panel data, namely cross-section data (8 provinces on the island of Sumatra) and time series data (2007-2020). The methodology of this study uses two econometric models, namely Model 1 of unemployment in relation to poverty, and Model 2 of unemployment in relation to the human development index. In this study, we will use descriptive statistics, correlations, and linear regression.The empirical findings of this study indicate that unemployment has a positive and significant relationship with poverty, and the effect of unemployment on the human development index is positive and significant. Model 2 contradicts theory and many other research results, where unemployment has a negative effect on the human development index. This is due to the many government assistance programs for the unemployed, so they deserve to live.