Daftar Isi:
  • The underlie to employment problem is increasing unemployment that caused by labor who able to absorpted. The capability of labor absorption is able to influenced by several factor like minimum wages, and economic growt.This research aims to analyze the effect of minimum wage and economic growth on labor absorption in East Java from 2012 to 2016. This research uses secondary data obtained from BPS-Statistics Indonesia (Badan Pusat Statistik) and East Java’s Disnakertrans. Method analysis is the panel data analyzing with a Random Effect Model (REM). Parsially independent variabel has positif and significant influence toward dependent variabel. Simultanly influence betwen variabels will be showed that minimum wages has a positive and significant influence towards the labor absorption. This shows that increasing minimum wages will increase employment. While economic growth has a negativ and significant significant influence towards the labor absorption. This shows that increasing economic growth will reduce employment.