This study aims to analyze and project the growth of sectoral Gross Domestic Product (GDP) in Indonesia and its implications for investment requirements and additional labor demand. The study utilizes labor and GDP data by industrial sector at constant prices for the period 2003–2025. The analytical method employed is the Incremental Labour Output Ratio (ILOR) approach, which projects labor requirements based on sectoral output growth. The results indicate that an increase in GDP in the agricultural sector does not significantly contribute to the expansion of employment absorption within the sector. In contrast, GDP growth in the community services, mining, and trade sectors shows greater potential in generating additional employment opportunities. Furthermore, additional labor in the agricultural sector does not produce optimal output growth and may potentially reduce productivity in the future. Meanwhile, increased labor in the mining sector is projected to generate higher output growth in the coming periods. These findings suggest that the dynamics of sectoral GDP growth have varying implications for employment absorption and productivity across economic sectors in Indonesia.
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