Elasticity of Labor Absorption in Industry and Service Sectors in East Kalimantan Province

Abstract

The purpose of this study is to analyze and determine the number of workers absorbed in the industrial and service sectors. Elasticity of employment opportunities in the industrial and service sectors. Comparing the magnitude of the influence of employment opportunities in the industrial and service sectors in East Kalimantan. The variables used in this study consist of variables of labor influence and GRDP (Gross Regional Domestic Product) on the production unit, in this case the industrial sector and the service sector which later can compare the elasticity of employment opportunities in the industrial and service sectors. In this study, the type of data used is secondary data from 2013-2022. The analytical tool used is a two-step structure model and analyzed using SPSS (statistical package for service solution) software version 26. From the analysis, it is obtained that the elasticity of employment in the industrial sector is positively inelastic. The elasticity of labor absorption in the service sector is positively inelastic. The elasticity of service sector labor absorption is greater than the elasticity of industrial sector labor absorption in East Kalimantan in 2013-2022. Thus, the development of the industrial sector and the service sector has good prospects and is expected to attract investors so that it can open new jobs that can increase the number of employment in East Kalimantan.