Abstract
Labor demand in North Sumatra during the period 1991 to 2012 showed a fluctuating condition, where in 2001 is decline. This research aims to analyze the influence of the investment sector, the number of industries, the regional minimum wage and inflation on labor demand sectors of the food industry, beverages and tobacco in North Sumatra Province simultaneously and partially. The data used are secondary data source from Statistics Indonesia of North Sumatra Province namely variable investment industry, the number of industries, the minimum wage, inflation and labor amount of food beverages and tobacco industry in North Sumatra province in the time series from 1991 till 2012 Data analysis wasper formed using OLS (Ordinary Least Square) with multiple linear regression models estimated with the help of the program E-views 7. The results of this study simultaneously changes in industry investment variables, the number of industries, RMW, and inflation significantly influence demand labor sector food industry, beverages and tobacco in North Sumatra Province. While partially concluded that the investment variable number of industry sectors and industries and a significant positive effect, negative effect variables and minimum significant wage, while the inflation variable and no significant negative effect on the demand for labor in the industrial sector of food, beverages and tobacco in North Sumatra Province. The results of this study also showed that the most dominant variable effect on labor demand sectors of the food industry, beverages and tobacco in North Sumatra Province is the minimum wage.
Highlights
INTRODUCTION ong-term economic development, followed by income growth, will bring about a fundamental change in the economic structure, namely a shift from a traditional economy with agriculture as the main sector to a modern economy dominated by non-primary sectors such as the industrial sector
It turns out that the investment variables in the industrial sector, the number of food and beverage and tobacco industries, inflation and the UMR are able to explain the model of labor demand in the food, beverage and tobacco industry in North Sumatra Province by 77.81 percent
The investment variable in the industrial sector and RMW has a significant effect on the demand for labor in the food, beverage and tobacco industry in North Sumatra Province
Summary
INTRODUCTION ong-term economic development, followed by income growth, will bring about a fundamental change in the economic structure, namely a shift from a traditional economy with agriculture as the main sector to a modern economy dominated by non-primary sectors such as the industrial sector. The classification of large and medium industries in the food, beverage and tobacco industry provides the largest contribution, especially in North Sumatra Province This can be seen from the large number of food, beverage and tobacco industries in the province of North Sumatra, for example in the 2010 s.d. 2012 as follows: Industrial Classification. Judging from its natural resources, the North Sumatra Province has a very large opportunity for investment activities, both Foreign investment (FI) and Domestic Investment (DI), especially from the industrial sector This is due to the availability of various raw materials from agricultural, plantation, fishery and livestock products, all of which can be used for the development of the manufacturing industry sector, many of which are large and medium-sized industries, especially in the food, beverage and tobacco industries. In 1997, the decline in the number of industries by 5 percent as a result of the monetary crisis in North Sumatra Province resulted in a decrease in the number of industrial workers in the food, beverage and tobacco sectors
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