This research aims to determine and analyze the influence of capital and wage levels on production value and employment in the wood craft industry in East Jambi sub-district. This research uses a quantitative approach and the data analysis method used is multiple linear regression analysis. The sample used in this research was 79 wood craft business actors in East Jambi sub-district. The results of the t test for the variable influence of capital (X1) on production value (Y1) obtained a significant value of 0.000 < 0.05 and a value of tcount > ttable, namely 6.894 > 2.039. The results of the t test for the variable influence of capital (X2) on labor absorption (Y2) obtained a significant value of 0.000 < 0.05 and a tcount > ttable value of 7.294 > 2.039. The results of the t test for the wage level variable (X2) on production value (Y1) obtained a significant value of 0.000 < 0.05 and a tcount > ttable value of 6.498 > 2.039. The results of the t test for the wage level variable (X2) on the value of labor absorption (Y2) obtained a significant value of 0.000 < 0.05 and a tcount > ttable value of 6.863 > 2.039. Variables influence capital (X1) and wage level (X2) on production value (Y1). The sign value is 0.000 < 0.05 and the fcount>ftable value is 32.961 > 3.29, so Ho is rejected and Ha is accepted and the Adjusted R Square (coefficient of determination) value is 0.680 or 68%. The variable influence of capital (X1) and wage level (X2) on labor absorption (Y2). The sign value is 0.000 < 0.05 and the fcount>ftable value is 38.177 > 3.29, so Ho is rejected and Ha is accepted and the Adjusted R Square (coefficient of determination) value is 0.711 or 71.1%.