Jurnal Dinamika Ekonomi Syariah
Vol. 13 No. 1 (2026): Jurnal Dinamika Ekonomi Syariah

LABOR ABSORPTION AND ECONOMIC GROWTH IN THE PERSPECTIVE OF ISLAMIC ECONOMICS: AN EMPIRICAL ANALYSIS

Eny Widiaty (Unknown)
Nur Fazillah Milawati (Unknown)
Sahirul Alim (Unknown)



Article Info

Publish Date
11 Jan 2026

Abstract

Economic growth is a key indicator of development performance, yet its relationship with labor absorption remains a critical issue, particularly when assessed from the perspective of Islamic economics. This study aims to examine the effect of labor absorption on economic growth within the framework of Islamic economic principles, emphasizing justice (al-‘adl), welfare, and social responsibility. The research employs a quantitative empirical approach using secondary data obtained from official statistical sources and institutional reports over a multi-year period. Data analysis is conducted using simple linear regression to identify the direction and significance of the relationship between labor absorption and economic growth. The results indicate that labor absorption has a negative effect on economic growth, suggesting that increases in employment are not necessarily accompanied by improvements in productivity or equitable income distribution. From the perspective of Islamic economics, these findings highlight the importance of aligning employment expansion with productivity enhancement, distributive justice, and social welfare to achieve sustainable and inclusive economic growth. This study contributes to empirical discussions on labor and growth by integrating Islamic economic values into the analysis and offers insights for policymakers in designing development strategies that are both economically effective and ethically grounded.

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Journal Info

Abbrev

es

Publisher

Subject

Religion Economics, Econometrics & Finance

Description

Jurnal Dinamika Ekonomi Syariah invites scholars researchers and students to contribute the result of their studies and researches in the areas related to Islamic economics Islamic public finance Islamic finance Islamic accounting Islamic business ethics Islamic banking Islamic insurance Islamic ...