The Factors Influencing the Extreme Poverty Rate in Medan City in 2008-2022
Abstract
Poverty remains a significant issue in various developing countries, including Indonesia, still face high poverty problems and many people live below the poverty line. This situation negatively impacts individuals' well-being, particularly their ability to meet basic needs such as food, clothing, and shelter. In North Sumatra, especially Medan City, high population density combined with limited job opportunities raises concerns that these factors may worsen poverty levels in the region. To combat and lessen poverty in Medan City, an efficient solution is therefore required. The purpose of this study is to examine how extreme poverty in Medan City is impacted by several factors between 2008 and 2022, including the unemployment rate, education level, population, workforce, investment, inflation, and economic growth. The data used in this study were taken from the Central Statistics Agency (BPS) of Medan City, which includes various publications such as *Medan City in Figures*, poverty statistics, and city data from 2008 to 2022. The methods used in this study are Confirmatory Factor Analysis (CFA) and multiple linear regression. The results of the study show that education level and economic growth have a significant effect on poverty in Medan City, while factors such as unemployment, population, workforce, investment, and inflation do not show a significant effect. Based on these findings, it can be concluded that improving education and fostering economic growth are key to reducing extreme poverty in Medan City.
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