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

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Analysis shows increased output and capital improves labor absorption in Indonesia, highlighting challenges from automation.

Labor absorption declines due to increased automation in the industrial sector, impacting job creation.
The analysis found that higher output, capital, and wages positively influence labor absorption metrics.
Using a multiple regression model, the study analyzed secondary data from BPS from 2013 to 2021.
Policies must be designed to balance industrial growth with the need for labor market inclusivity in Indonesia.

Pratnyaloka et al. (2025) studied this question.

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