Pengaruh Pertumbuhan Ekonomi, Upah, dan Kualitas Penduduk Terhadap Penyerapan Tenaga Kerja di Provinsi Jawa Timur Tahun 2016-2020

Abstract

The problem of low labor absorption can cause high unemployment, which can lead to crime and increase poverty. So that every country tries to reduce the unemployment rate to a reasonable limit by opening up jobs so that labor can be absorbed optimally. Labor can also increase the value of output in economic growth through Gross Regional Domestic Product (GRDP). In 2020, employment in Indonesia was recorded at 1,156,361 workers. East Java has a large potential for labor absorption because it has a fairly large industrial area. This is considered to encourage economic growth. So this study wants to analyze the effect of economic growth, wages and human development index on employment in East Java Province with a time span of 2016-2020. The data used is secondary data with the Fixed Effect Model (FEM) method and Ordinary Least Square (OLS) estimation. The results showed that economic growth has a positive and insignificant effect on labor absorption, wages have a negative and insignificant effect on labor absorption and population quality has a positive and significant effect on labor absorption in East Java Province in 2016-2020.