Macroeconomic Drivers of Human Development and Job Creation: A Case Study of Central Aceh

Abstract

This study investigates the macroeconomic determinants of human development and job creation in Central Aceh District. Focusing on Gross Regional Domestic Product (GRDP) and the growth of Micro, Small, and Medium Enterprises (MSMEs), the analysis examines their simultaneous impact on the Human Development Index (HDI) and employment opportunities. Utilizing a quantitative approach with multiple linear regression, the findings reveal that GRDP significantly influences both HDI and job availability, indicating the importance of economic growth in enhancing regional welfare and labor absorption. Meanwhile, MSMEs exhibit a more selective influence, contributing notably to employment generation but showing limited effect on HDI. These results suggest that while promoting MSMEs is vital for expanding employment, broader economic policies are needed to improve human development outcomes. The study provides evidence-based insights for policymakers to design integrated strategies that align economic expansion with social development goals in rural and developing regions.