IMPACT OF SECTORAL GROWTH ON EMPLOYMENT ABSORPTION: EVIDENCE FROM KEY INDONESIAN INDUSTRIES
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 g...
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| Main Authors: | , , , |
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| Format: | Article |
| Language: | Indonesian |
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Fakultas Ekonomi dan Bisnis, Universitas Tanjungpura
2024-11-01
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| Series: | Jurnal Ekonomi Bisnis dan Kewirausahaan (JEBIK) |
| Subjects: | |
| Online Access: | https://jurnal.untan.ac.id/index.php/JJ/article/view/79592 |
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| author | Azrul Afrillana Awaludin Moch Aridhi Al Khaidar Muhammad Cholil Sulistya Rusgianto |
| author_facet | Azrul Afrillana Awaludin Moch Aridhi Al Khaidar Muhammad Cholil Sulistya Rusgianto |
| author_sort | Azrul Afrillana Awaludin |
| collection | DOAJ |
| description | 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. |
| format | Article |
| id | doaj-art-ac2f80bd93764c1dab820e44e7193b7e |
| institution | OA Journals |
| issn | 2087-9954 2550-0066 |
| language | Indonesian |
| publishDate | 2024-11-01 |
| publisher | Fakultas Ekonomi dan Bisnis, Universitas Tanjungpura |
| record_format | Article |
| series | Jurnal Ekonomi Bisnis dan Kewirausahaan (JEBIK) |
| spelling | doaj-art-ac2f80bd93764c1dab820e44e7193b7e2025-08-20T02:14:43ZindFakultas Ekonomi dan Bisnis, Universitas TanjungpuraJurnal Ekonomi Bisnis dan Kewirausahaan (JEBIK)2087-99542550-00662024-11-0113227429310.26418/jebik.v13i2.7959245537IMPACT OF SECTORAL GROWTH ON EMPLOYMENT ABSORPTION: EVIDENCE FROM KEY INDONESIAN INDUSTRIESAzrul Afrillana Awaludin0Moch Aridhi Al Khaidar1Muhammad Cholil2Sulistya Rusgianto3Airlangga UniversityUIN Sunan AmpelUniversitas AirlanggaUniversitas AirlanggaThis 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.https://jurnal.untan.ac.id/index.php/JJ/article/view/79592unemploymentindustrializationindonesian economysectoral growth |
| spellingShingle | Azrul Afrillana Awaludin Moch Aridhi Al Khaidar Muhammad Cholil Sulistya Rusgianto IMPACT OF SECTORAL GROWTH ON EMPLOYMENT ABSORPTION: EVIDENCE FROM KEY INDONESIAN INDUSTRIES Jurnal Ekonomi Bisnis dan Kewirausahaan (JEBIK) unemployment industrialization indonesian economy sectoral growth |
| title | IMPACT OF SECTORAL GROWTH ON EMPLOYMENT ABSORPTION: EVIDENCE FROM KEY INDONESIAN INDUSTRIES |
| title_full | IMPACT OF SECTORAL GROWTH ON EMPLOYMENT ABSORPTION: EVIDENCE FROM KEY INDONESIAN INDUSTRIES |
| title_fullStr | IMPACT OF SECTORAL GROWTH ON EMPLOYMENT ABSORPTION: EVIDENCE FROM KEY INDONESIAN INDUSTRIES |
| title_full_unstemmed | IMPACT OF SECTORAL GROWTH ON EMPLOYMENT ABSORPTION: EVIDENCE FROM KEY INDONESIAN INDUSTRIES |
| title_short | IMPACT OF SECTORAL GROWTH ON EMPLOYMENT ABSORPTION: EVIDENCE FROM KEY INDONESIAN INDUSTRIES |
| title_sort | impact of sectoral growth on employment absorption evidence from key indonesian industries |
| topic | unemployment industrialization indonesian economy sectoral growth |
| url | https://jurnal.untan.ac.id/index.php/JJ/article/view/79592 |
| work_keys_str_mv | AT azrulafrillanaawaludin impactofsectoralgrowthonemploymentabsorptionevidencefromkeyindonesianindustries AT mocharidhialkhaidar impactofsectoralgrowthonemploymentabsorptionevidencefromkeyindonesianindustries AT muhammadcholil impactofsectoralgrowthonemploymentabsorptionevidencefromkeyindonesianindustries AT sulistyarusgianto impactofsectoralgrowthonemploymentabsorptionevidencefromkeyindonesianindustries |