Analisis Faktor-Faktor yang Mempengaruhi Penyerapan Tenaga Kerja Sektor Industri Pengolahan di Pulau Jawa Tahun 2010-2018

The characteristics of the Indonesian labor market, which is an excess of the workforce and the structural transformation from the agricultural sector to the industrial sector, makes Indonesia trapped in the problem of labor absorption. This study aims to analyze the effect of investment, average length of schooling, labor wages, the number of micro and small industries, and GRDP on labor absorption in the manufacturing sector in Java Island during the period 2008 -2018. The analysis method used is panel data regression with a fixed effect approach. The results show that investment, average length of schooling, and GRDP, respectively, have a positive effect on labor absorption in the manufacturing sector. Labor wages are proven to have a negative effect on labor absorption in the manufacturing sector. Meanwhile, the number of micro and small industries was found to have no effect on labor absorption in the manufacturing sector