August 13, 2025

Determinants of Labor Absorption in the Manufacturing Industry in Central Java Province

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Analysis shows Domestic Investment and business units impact labor absorption in Central Java's manufacturing, suggesting reforms are needed.

Labor absorption in the manufacturing sector increases as business units rise, emphasizing their significance.
Key metrics reveal that while Domestic Investment negatively affects labor absorption, the number of business units has a positive impact.
Analysis using multiple linear regression on time series data from 1990 to 2022 highlights important economic trends in Central Java.
The findings suggest that the government should focus on promoting labor-intensive investments to enhance employment opportunities.

Subekti et al. (2025) studied this question.

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Analysis shows Domestic Investment and business units impact labor absorption in Central Java's manufacturing, suggesting reforms are needed.