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All Journal Journal of Management, Economic, and Accounting
Rizky Muhammad Husein
University Pembangunan Panca Budi
Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

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Analysis of The Determinants of Small and Medium Industry (Smi) Development on Labor Absorption in Medan City Rizky Muhammad Husein; Rahmad Sembiring; Lia Nazliana Nasution
Journal of Management, Economic, and Accounting Vol. 5 No. 4 (2026): Oktober
Publisher : Universitas Dehasen Bengkulu

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.37676/jmea.v5i4.1735

Abstract

This study aims to analyze the determinants of the development of Small and Medium Industries (SMIs) in relation to labor absorption in Medan City. The dependent variable in this study is labor, while the independent variables include economic growth, wages, investment, production, productivity, the open unemployment rate, and the Human Development Index (HDI). This study uses secondary data obtained through data searches and collection from the official website of Statistics Indonesia (BPS). The data are analyzed using Confirmatory Factor Analysis (CFA) and multiple linear regression to identify the factors influencing labor absorption in Medan City. The results show that economic growth, investment, and the Human Development Index have significant effects on labor absorption in Medan City. These findings highlight the importance of promoting economic growth, increasing investment, and improving human resource quality to support labor absorption and encourage the development of Small and Medium Industries in Medan City.
Co-Authors , Rahmad Sembiring Lia Nazliana Nasution