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Laendatu Paembonan
Universitas Tadulako, Palu, Indonesia
Religion Agriculture, Biological Sciences & Forestry Arts Humanities Computer Science & IT Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Engineering Environmental Science Industrial & Manufacturing Engineering Languange, Linguistic, Communication & Media Law, Crime, Criminology & Criminal Justice Mathematics Social Sciences Other

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Elasticity of Growth in the Processing Industry Towards the Contribution of Labour Absorption in the Processing Industry in the City of Palu Alfiana, Alfiana; Nurnaningsih, Nurnaningsih; Sading, Yunus; Paembonan, Laendatu; Yohan, Yohan
JOURNAL OF HUMANITIES, SOCIAL SCIENCES AND BUSINESS Vol. 4 No. 4 (2025): AUGUST
Publisher : Transpublika Publisher

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55047/jhssb.v4i4.1915

Abstract

The manufacturing sector is a strategic pillar of regional economic development due to its significant role in generating added value and creating employment opportunities. However, in Palu City, the growth of this sector has not consistently translated into proportional increases in employment absorption. This study aims to analyze the elasticity of manufacturing sector growth with respect to its contribution to employment absorption in Palu City over the period 2019–2023. A descriptive quantitative approach was employed, utilizing secondary data obtained from the Central Bureau of Statistics (BPS) of Palu City and relevant agencies. The data set comprises the manufacturing sector’s Gross Regional Domestic Product (GRDP), the number of workers in the manufacturing sector, and the total workforce in Palu City. The analysis involved calculating both output and employment growth rates, followed by the computation of labor absorption elasticity using the elasticity ratio formula. The results reveal that the relationship between manufacturing output growth and employment absorption in Palu City is volatile and not always proportional, as indicated by the elasticity measurements of manufacturing GRDP growth relative to employment growth in the sector. Certain years recorded negative elasticity values, reflecting inverse relationships driven by internal sectoral dynamics such as efficiency gains, technological adoption, and external shocks including the COVID-19 pandemic. The study concludes that although the manufacturing sector makes a substantial contribution to economic growth, its impact on job creation remains suboptimal. As such, integrated policies are needed to align industrial growth with sustainable employment and improve regional welfare.
Co-Authors Adrianton Adrianton Alda Sela Sasmita Iyono Alfiana Alfiana Alfiska Meike Syaloomitha Ompoeo Andi Herman Jaya Armin Armin, Armin Armin Muis Chairil Anwar Eko Jokolelono Failur Rahman Fitra Fitra, Fitra Ika Rafika Jamiludin, Jamiludin Kalvin Albert Parinding Kekka, Gabriella Pingkan Marselina Lian Marselina Lian Mengkido, Abner Mohammad Ega Nugraha Muhammad Idfal Musdayati Musdayati, Musdayati Nabir, Rahmayanti Nurnaningsih Nurnaningsih Nurnaningsih Nurnaningsih, Nurnaningsih Nursiah Nursiah Nursiah Nursiah Parinding, Kalvin Paskual, Meity Ferdiana Putri, Atista Galuh Surya Rahma Rahma Rahmat Hidayat Rita Suirlan Rita Yunus Rombe, Elimawati Salsabila, Zoel Daleta Santi Yunus Santi Yunus Siti Rahmawati Suparman Suparman suparman suparman Syamsuddin HM Syatir, Ahmad Tallesang, Mukhtar Tallesang, Mukthar Thaha, KHaeruddin Totanan, Chalarce Yoberth Kornelius Yohan Yohan Yohan Yunus Sading Yunus, Santi