Analysis of Factors Affecting Manpower Absorption in the Industrial Sector in West Java

Abstract

This study aims to determine the factors that influence the employment of the industrial sector in West Java in 2016 to 2020. Although the rate of economic growth has increased, the rate of investment has declined quite significant in West Java Province, which ultimately will have a negative effect on labour absorption. Thus it is of urgent importance to pay close attention to factors affecting employment in West Java industrial sector. The independent variables used in this study are the rate of economic growth, the number of industrial business units, the district/city minimum wage and investment. This study uses secondary data obtained from the Central Bureau of Statistics of West Java and various literatures. Analysis methods using panel data regression analysis. The results with the Fixed Effects Model approach showed that the rate of economic growth and the district/city minimum wage have a positive and significant effect on employment, while the number of industrial business units and investment have a negative and significant effect on employment,