August 13, 2025

Analysis of Labor Absorption in the Agriculture and Industrial Sectors Using a Demometric Approach in Central Java Province, 2014– 2023

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Quantitative analysis demonstrates labor absorption dynamics in agriculture and industry, indicating significant demographic impacts.

Labor absorption in agriculture declines with higher Agricultural RGDP and Foreign Direct Investment (FDI), while positively influenced by demographic factors.
In the industrial sector, FDI negatively affects labor absorption, but the Minimum Wage shows a positive correlation, impacting workers.
Analysis utilized multiple linear regression models with fixed effects, drawing data from Central Java's Open Data portal and Statistics Agency.
Findings suggest that managing population dynamics and implementing agricultural price protections could enhance labor outcomes.

Pratama et al. (2025) studied this question.

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