THE EFFECT OF GROSS REGIONAL DOMESTIC PRODUCT, MINIMUM WAGE, AND LABOR FORCE NUMBER ON LABOR ABSORPTION

Clarista Putri Refana(1*), Marseto Marseto(2)


(1) UNIVERSITAS PEMBANGUNAN NASIONAL VETERAN JAWA TIMUR
(2) UNIVERSITAS PEMBANGUNAN NASIONAL VETERAN JAWA TIMUR
(*) Corresponding Author

Abstract


This study aims to analyze the influence of Gross Regional Domestic Product (GRDP), District Minimum Wage (UMK), and the number of workforce on labor absorption in Jombang Regency in 2009–2024. The research method used is a quantitative descriptive approach with multiple linear regression analysis techniques using SPSS 27 software. Research data was obtained through documentation methods from the Central Statistics Agency (BPS) and other relevant sources. The results of the study indicate that GRDP and minimum wages do not have a significant effect on labor absorption in Jombang Regency. This condition indicates that increased economic growth and minimum wage increases have not been able to encourage an increase in labor absorption optimally. Regional economic growth tends to be dominated by capital-intensive sectors so that increases in output are not followed by an increase in labor demand. In addition, changes in the minimum wage have not been a major factor in companies' decisions to absorb labor. Meanwhile, the number of the workforce has a positive and significant effect on labor absorption. This indicates that an increase in the number of the workforce is able to encourage economic activity and open wider employment opportunities. Overall, labor absorption in Jombang Regency is more influenced by labor force dynamics than by economic growth and minimum wage policies.


Keywords


Gross Regional Domestic Product (GRDP), Minimum Wage, Number of Workforce, Labor Absorption

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DOI: https://doi.org/10.26714/vameb.v22i2.21249

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