Determinants of Labor Absorption in Indonesia
DOI:
https://doi.org/10.59890/ijfbm.v3i3.60Keywords:
Investment, Government Spending, Consumer Index, LaborAbstract
This study examines the determinants of labor absorption in Indonesia with variables of domestic investment, government spending, and consumer price index on labor absorption using quantitative methods with panel data sourced from BPS and BKPM data covering a period of 19 years from 2006 to 2024. The data for this study was processed using SPSS. The results of this study indicate that domestic investment, government spending, and the consumer price index simultaneously have a positive effect on labor absorption in Indonesia. However, when analyzed individually, domestic investment and the consumer price index do not have a significant effect on labor absorption. On the other hand, government spending has a significant effect on labor absorption in Indonesia when analyzed individually.
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