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All Journal Jurnal Ekonomi, Bisnis dan Kewirausahaan (JEBIK) Jurnal Ekonomi & Keuangan Islam Transformatif Journal of Digital Marketing and Halal Industry Munazzama Journal of Islamic Management and Pilgrimage
Awaludin, Azrul Afrillana
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Religion Economics, Econometrics & Finance Education Languange, Linguistic, Communication & Media Law, Crime, Criminology & Criminal Justice Social Sciences Other

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Journal : Jurnal Ekonomi, Bisnis dan Kewirausahaan (JEBIK)

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IMPACT OF SECTORAL GROWTH ON EMPLOYMENT ABSORPTION: EVIDENCE FROM KEY INDONESIAN INDUSTRIES Awaludin, Azrul Afrillana; Al Khaidar, Moch Aridhi; Cholil, Muhammad; Rusgianto, Sulistya
Jurnal Ekonomi Bisnis dan Kewirausahaan Vol 13, No 2 (2024): Jurnal Ekonomi Bisnis dan Kewirausahaan (JEBIK)
Publisher : Fakultas Ekonomi dan Bisnis, UNTAN

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.26418/jebik.v13i2.79592

Abstract

This study aims to analyse the impact of growth in key industrial sectors on labor absorption in Indonesia, using time series data from 2011Q1 to 2023Q4 and employing the Autoregressive Distributed Lag (ARDL) model. This method captures the long-term and short-term relationships between industrial growth and labor absorption. The findings reveal that, in the long term, the oil and gas processing industry, non-oil and gas manufacturing, trade, and finance sectors significantly influence labor absorption. In contrast, the agriculture and mining sectors do not show a significant long-term effect. However, in the short term, all variables display varying impacts. Interestingly, the agriculture and mining sectors exhibit significant short-term effects despite their lack of long-term influence. This study contributes to the unemployment literature and suggests that the Indonesian government should focus on industrialisation to reduce unemployment. Industrialisation can stimulate job creation and support sustainable economic growth. These findings highlight the need for well-targeted policy strategies to optimise the industrial sector's role in reducing unemployment and enhancing economic stability.JEL: B22, E24, L60.
Co-Authors Al Khaidar, Moch Aridhi Al-Khaidar, Moch Aridhi Ari Prasetyo Cholil, Muhammad Ilham, Moh Rusgianto, Sulistya Samsul Arifin Saputra, Deky Chandra Yusril Yusril