JEFMS Journal

ABSTRACT:

This study aims to (1) determine whether Production Value, Number of Industries, and Minimum Wage had a significant impact on employment in small and medium-sized industries in Central Sulawesi Province from 2016 to 2021, and (2) ascertain whether Production Value, Number of Industries, and Minimum Wage had a partial and significant effect on Labor Absorption in small and medium industries in the region during the same period. The data used in this study were derived from secondary sources obtained from the publication of the Office of Industries and Trade as well as the Office of Manpower and Transmigration in Central Sulawesi Province. Furthermore, the Fixed Effect Model (FEM) was chosen as the best model for panel data regression analysis. The results showed that Production Value had a positive but insignificant effect on employment with a probability value of 0.4691. Number of industries had a positive and significant effect on employment with a probability value of 0.0000. Production Value had a negative and insignificant effect on employment with a probability value of 0.8988. Finally, Minimum Wage had a negative and insignificant effect on Labor Absorption with a probability value of 0.9219.

KEYWORDS:

Labor Absorption, Production Value, Number of Industries, Production Value, and Minimum Wage

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