The Absorption Employment of Industrial Sector Workers and Influencing Factors

Angga Kurniawan, Cicih Ratnasih, & Meirinaldi
Universitas Borobudur, Indonesia
DOI – http://doi.org/10.37502/IJSMR.2022.5801

Abstract

The title of this paper is the absorption of industrial labor and the factors that influence it.  The variable used Education Level, Foreign direct investment, Population Growth, and Wages as independent variables and Industrial Labor as dependent variables. The purpose of the study is to see the macroeconomic growth that a decade has been able to reduce the unemployment rate and increase employment in Indonesia. There are two million Indonesians who enter the world of work every year, this is a labor market that can stimulate the creation of new jobs and absorption of the workforce that continues to grow every year in the industrial sector. Research results the level of education, population growth, and wages are significant to the absorption of industrial labor, while FDI is not significant. The level of education needs attention considering that the young unemployment of most of those who have just graduated from college is one of the main concerns and needs rapid action, while the population growth rate makes a value of output and input, in contrast to wages as a community income, if there is an increase in the value of wages then the quality labor absorbed will increase. The absorption of industrial labor is influenced by the 3 (three) variables mentioned above, therefore these three variables become important and need special attention the level of education, population growth, and wages.

Keywords: Education level, foreign direct investment, population growth, wages, and Industrial sector labor.

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