Abstract

Indonesia has natural resources and a high population, which motivates the Indonesian people to improve their life in a sustainable manner. However, if there is an increase in population, it is not balanced with the absorption of labor. Then there will be problems that will occur in that area. Meanwhile, the general condition of employment in Indonesia for the 2016-2020 period experienced very volatile growth and this can basically be influenced, namely through external and internal. This study seeks to find out the truth whether the influence of GRDP, inflation, minimum wages, investment and education on labor absorption by quantitative research and using secondary data. The data collection technique uses literature studies and documentation located at the Central Statistics Agency (BPS) for each province in Indonesia. Then the data that has been collected will be tested and analyzed using panel data regression techniques. The conclusion from the results of this study is that the GRDP variable has a positive and insignificant effect on employment in Indonesia for the 2016-2020 period. Then the inflation and education variables have a negative and insignificant effect on labor absorption in Indonesia for the 2016-2020 period. In contrast to the minimum wage and investment variables, the results of the analysis in this study are positive and significant for each variable on labor absorption in Indonesia for the 2016-2020 period.

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