The effect of labor force participation rate and government expenditure on community welfare in Aceh Province

Safinatun Naja; Yani Rizal; Asnidar

doi:10.62941/irefi.v1i3.39

The effect of labor force participation rate and government expenditure on community welfare in Aceh Province

Safinatun Naja

Yani Rizal

Asnidar

Keywords: Labor force participation rate government expenditure community welfare public policy

This study aims to analyze the impact of the Labor Force Participation Rate (LFPR) and government expenditure on community welfare in Aceh Province. The research is based on secondary data sourced from Statistics Indonesia (BPS) Aceh and the Directorate General of Fiscal Balance (DJPK). A quantitative approach with time series data is employed to assess these relationships. The findings indicate that, partially, the LFPR has a negative but insignificant effect on community welfare, whereas government expenditure has a positive and significant effect. Simultaneously, both the LFPR and government expenditure have a significant impact on community welfare. These findings underscore the critical role of government spending in enhancing societal well-being, while labor market policies require further evaluation to optimize their contribution to community welfare.

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