FACTORS AFFECTING LABOUR ABSORPTION IN BANYUMAS REGENCY

Abstract

Unemployment is one of the serious challenges experienced by all countries, including Indonesia as a developing country. Some cities or regencies in each province have unemployment rates that are higher than the provincial and Indonesian levels, one of which is Banyumas Regency. Therefore, the purpose of this study is to determine the effect of human development index, gross regional domestic product, regency minimum wage and investment on labour absorption in Banyumas Regency. This research uses secondary data from the Central Statistics Agency. The model uses is a time series analysis model with the data used is data in 2004 - 2023. The time series data processing technique in this study uses the help of Eviews 10 software. The result of this study shows that human development index has a positive and significant effect on labour absorption in banyumas regency. Gross regional domestic product and regency minimum wage have a negative and significant effect on labour absorption in banyumas regency. Lastly, investment has a positive but insignificant effect on labour absorption in banyumas regency. The implication of this research is that policies that can be considered by the Banyumas Regency government to increase labour absorption are inclusive economic growth, quality of life improvement, productivity improvement and wage policy. In addition, policies for investment are creating a conducive investment climate, developing MSMEs and increasing labour productivity.