The Impact of Inflation and Unemployment on the Number of Poor People in North Sumatra Province

Abstract

This study aims to analyze the impact of inflation and unemployment on poverty levels in North Sumatra Province. Using time-series data from 2007 to 2020 obtained from the Central Statistics Agency (BPS), the study employs multiple regression analysis with the Ordinary Least Squares (OLS) method. The results reveal that inflation has a positive and significant effect on poverty, while unemployment has a positive but insignificant effect. Simultaneously, both variables significantly influence poverty levels in the region. These findings highlight the importance of inflation control as part of poverty alleviation strategies and underscore the need to understand the complex relationship between unemployment and poverty for more effective policy formulation.