Analysis of Industry Sector Growth Impact on Labor Absorption in Indonesia (2013-2021)

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Analysis reveals significant factors affecting labor absorption in Indonesia's industrial sector, suggesting policy needs for inclusivity.

Labor absorption trends show a decline, driven by increased automation and capital-intensive industries.
Key variables like output, capital, and wages positively influence labor absorption metrics over the study period.
Observational analysis using multiple regression on secondary data from BPS explores these relationships.
Significant findings suggest balancing industrial modernization with labor market inclusivity is essential.

Pratnyaloka et al. (2025) studied this question.

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Analysis reveals significant factors affecting labor absorption in Indonesia's industrial sector, suggesting policy needs for inclusivity.