Abstract
The high rate of population growth and the workforce raises the problem of job opportunities, because it involves various aspects both economic and non-economic. At the same time as massive industrialization, it is not automatically able to create adequate work. This study aims to analyze and determine the effect of the number of business units, the provincial minimum wage, and economic growth on the rate of labor absorption in the medium and large industrial sectors in South Sulawesi in the period 2010-2019. This research is expected to be one of the benchmarks for the government and private sector in paying attention to the absorption rate of labor in the industrial sector in South Sulawesi. The type of research used in this research is quantitative. The type of data used in this study is secondary data. The data used in this study are time series data in the years 2010-2019. The results of this study indicate that (1) the number of business units has a positive and significant effect on the rate of employment in the industrial sector in the province of South Sulawesi, (2) the provincial minimum wage has a negative and significant effect on the rate of employment in the medium and large industrial sector in South Sulawesi, (3) economic growth has a significant effect in a negative direction on employment in the medium and large industrial sectors in South Sulawesi. The government should design an industrialization policy direction that should be more inclusive, the incoming investment should be based on empowering local workers, reducing unemployment, creating more expansive employment opportunities and synergizing local economic development.Keywords: Economic Growth; Industry; Labor; Wages.
Highlights
Economic development is basically a change that applies both from the aspect of economic activity such as the development of education, the development of improved technology in health, an increase in the availability of infrastructure and an increase in income and community prosperity Economic development is a method used by the government to help realize more economic growth. advanced and is a tool used to encourage economic growth (Sukirno, 2016).Economic development in developing countries characterized by increasing unemployment is a more complex and more serious problem than the problem of changes in the distribution of income that are less favorable for low-income people
The location of the research taken is the province as a whole, while the data collection process for data on labor absorption, the number of business units, economic growth and minimum wages can be done at the Department of Industry and Trade of South Sulawesi Province and from the Provincial Statistics Agency (BPS)
It can be calculated that the open unemployment rate in South Sulawesi Province in 2011 was 6.56%
Summary
Economic development is basically a change that applies both from the aspect of economic activity such as the development of education, the development of improved technology in health, an increase in the availability of infrastructure and an increase in income and community prosperity Economic development is a method used by the government to help realize more economic growth. advanced and is a tool used to encourage economic growth (Sukirno, 2016).Economic development in developing countries characterized by increasing unemployment is a more complex and more serious problem than the problem of changes in the distribution of income that are less favorable for low-income people. The conditions in the developing country over the past few decades show that economic development is unable to create job opportunities faster than population growth. This can cause several problems in business development because on the one hand a high population growth rate will cause the development of the number of workers to be almost as fast, on the other hand the country's ability to create new job opportunities is very limited (Sukirno, 2006). The instability that occurs between the increase in available job opportunities has resulted in an increasingly compelled need to expand employment opportunities
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