<![CDATA[The study aims to analyze the influence of education, income, and business capital on labor absorption in Small and Medium Enterprises (SMEs) in Aikmel District, East Lombok Regency. This type of research uses quantitative research. This study used 87 respondents who were taken randomly from a total population of 677 SME units using a random sampling technique based on the Slovin formula. Primary data were obtained through questionnaires and analyzed using multiple linear regression techniques using SPSS software. The findings of this study indicate that the variables of education (β = 1.046; p = 0.036) and income (β = 1.207; p = 0.025) have a positive and significant influence on labor absorption, while business capital does not show a significant influence (p = 0.639). The results of simultaneous testing (F Test) show that the overall regression model is significant in predicting the dependent variable Y, as evidenced by the F value reaching 21,658 with a significance level of 0.000 (p <0.05). This indicates that at least one of the independent variables (X1, X2, or X3) has a significant effect on Y. The result of the coefficient of determination (R²) test is 0.714, indicating that the independent variable can explain 71.4% of the variation in labor absorption. This finding confirms that improving the quality of human resources through education and increasing business income is more effective in supporting labor absorption than simply increasing business capital. This study also emphasizes the importance of skills training programs and business support for SMEs as well as the development of relevant policies to support business expansion and job creation in the area.]]>
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