Analysis of Industrial-Sector Labor Force Absorption in West Java during the 2017-2021 Period

Industrialization occurs in a country where the industrial sector makes the largest contribution to the economy. The purpose of it is to improve the economy, accelerate development, and increase employment opportunities. With the growth of industrial sector, unemployment rate of West Java is still one of the highest in Indonesia and the labor absorption in this sector is not the highest. This study aims to analyse the influence of UMK, workforce, investment, GDRP in the industrial sector, and number of industries in labor absorption in the industrial sector of West Java Province in 2017-2021. This research using panel regression as its method. The result of the research shows that UMK, investment, and GDRP of industrial sector has positive and significant influence while workforce and GDRP of industrial sector has no effect for labor force in industrial sector. UMK, workforce, investment, GDRP of industrial sector, and number of industries has positive and significant influence for labor absorption in West Java in 2017-2021 simultaneously.

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Publication Details

Journal
Journal of Development Economic and Social Studies.
Published
2025-04-05
DOI
https://doi.org/10.21776/jdess.2025.04.2.18
Primary Topic
Economic Growth and Fiscal Policies
Type
article
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article

Analysis of Industrial-Sector Labor Force Absorption in West Java during the 2017-2021 Period

Bahtiar Fitanto, Naila Aysa Humaira
Journal of Development Economic and Social Studies.
Economic Growth and Fiscal Policies
article

Analysis of Industrial-Sector Labor Force Absorption in West Java during the 2017-2021 Period

Bahtiar Fitanto, Naila Aysa Humaira
article en

Abstract

Industrialization occurs in a country where the industrial sector makes the largest contribution to the economy. The purpose of it is to improve the economy, accelerate development, and increase employment opportunities. With the growth of industrial sector, unemployment rate of West Java is still one of the highest in Indonesia and the labor absorption in this sector is not the highest. This study aims to analyse the influence of UMK, workforce, investment, GDRP in the industrial sector, and number of industries in labor absorption in the industrial sector of West Java Province in 2017-2021. This research using panel regression as its method. The result of the research shows that UMK, investment, and GDRP of industrial sector has positive and significant influence while workforce and GDRP of industrial sector has no effect for labor force in industrial sector. UMK, workforce, investment, GDRP of industrial sector, and number of industries has positive and significant influence for labor absorption in West Java in 2017-2021 simultaneously.

Journal of Development Economic and Social Studies.Vol. 4(2)
University of Brawijaya (ID)
Openalex Percentile: Top 69%
Economic Growth and Fiscal Policies
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