ABSTRACTThis study entitled "The Influence of Growth Rate of Small Industry Sector, Investment andWages Against Labor Absorption in Surabaya City 2005-2012 ". The purpose of this research is to know the influence of growth rate of small industry sector, investment and wage to the absorption of labor force in Surabaya city and also to know which variable is the most dominant in the absorption of manpower in Surabaya city.Types and sources of data using quantitative approach with secondary data in the form of time series data observation period 2005-2012. The research variable consists of dependent variable that is labor absorption (Y). Independent variables are growth of small industry sector (X1), investment (X2), and wage (X3). Data analysis tools using multiple linear regression method.Based on the result of multiple linear regression analysis obtained result: Y = 58768,352 + 58,258X1 + 1.049E-8 X2 + 0,009 X3 + e. Obtained also thitung value of small industry growth of1,101, investment of 3,731 and wage 3,357. While for testing simultaneously obtained value Fhitung 125,305> Ftabel 6,59. Thus H0 is rejected and Ha accepted. The conclusions of this study indicate that the growth rate of small industries, investment and wages affect the absorption of labor in the city of Surabaya. And investment variable is the most dominant variable in the absorption of manpower in Surabaya.   Keywords: Small industry growth, investment, wage, employment.
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