Economic Growth on Labor Absorption: District/City Panel Data Analysis in Lampung Province
Authors: Siatan Mairizal Salehudin , Zuliansyah Ahmad 
Published: July 2023

Purpose: The purpose of this study is to present the results of an analysis of economic growth on employment in Lampung Province. Analysis to look for patterns of relationships, underlying causes, and policies that can be taken to deal with employment problems in Lampung Province. Because, the development process is based on equal distribution of employment opportunities. Balanced employment opportunities are an important factor in the success of economic growth. In essence, if you want to experience good economic growth, it is expected to be able to open many jobs.

Theoretical framework: Recent literature has reported econometric analysis using the least squares regression equation model that the R2 regression number of 0.991 indicates a fairly strong influence. The economic growth of a region has an impact on employment. This research is Labor Intensive in nature as evidenced by the results of the research which reveal that to be able to see an area that is developing economically can be seen through the absorption of the workforce that is carried out. In line with Meyer's (2017) statement that scarce job opportunities lead to high levels of poverty and inequality.

Design/Methodology/Approach: To obtain a clearer picture of the patterns and effects of the relationship between economic growth and labor absorption that occurs in the districts studied, an analysis is divided into 2 stages, namely: 1) Descriptive Analysis, and 2) Econometric Analysis. Descriptive analysis is done by presenting data in tables and graphs. Descriptive analysis is used to answer research objective number 1. The econometric analysis was carried out using panel data which was used to determine the effect of economic growth and several other variables on labor absorption in Lampung Province.

Findings: Results of this research of calculations and discussion, can be said that employment in PT Lampung Province is influenced by PDRB (Economic Growth), Total Population, High School Graduates, and Regional Minimum Wages. GDP has in relation to the total employed persons. The total population has a positive relationship with the number of working populations. The number of people who graduate from high school has a positive relationship with the total working population. Regional minimum wages have a positive impact on the number of people employed.

Research, practical & social implications: I suggest that further research does not only focus on presenting the results of an analysis of economic growth on employment. Because many factors are deemed necessary to collaborate to find out what can support economic growth.

Originality/Value: The finding that there is a positive relationship between the number of individual high school graduates who have jobs. The regional minimum wage has a positive relationship with the number of working people. The R2 value of 0.991 indicates that there is a fairly strong influence between the independent variables on the dependent variable, namely the number of working population of 99.1 percent, while the remaining 0.10 percent is explained by other factors not involved in the model.