Abstract

This research aims to analyze the influence of investment and economic growth on labor absorption and the impact of inflation in moderating investment and economic growth on labor absorption. This study uses quantitative methods and panel data in its calculations and includes data on ASEAN, which has the most significant level of industrialization. Using panel data and cross-section for 12 years and time series in 4 ASEAN countries, calculations using multiple linear regression analysis. The findings of this study show that in advanced industrial countries in ASEAN Region 4, economic growth has a positive and significant influence on labor absorption. In contrast, investment has a negative and significant influence on labor absorption. Inflation can also strengthen investment toward labor absorption with positive and important results, but inflation cannot moderate economic growth toward labor absorption with negative and insignificant results.

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