Analysis of Factors Influencing Labor Absorption in Medan City

Abstract

This study aims to determine how much influence the variables of Economic Growth, Inflation and Wages either partially or simultaneously or together on Labor Absorption in Medan City. This type of research is descriptive quantitative where the data used is secondary data for the period from 2008 to 2022, then the annual data is interpolated into quarterly. The data was obtained from the Central Bureau of Statistics for the City of Medan. The analytical method used in this study is the OLS method which uses the classical assumption test and multiple linear regression analysis. The results of this study indicate that partially, Economic Growth in Medan City has a positive and not significant effect on Labor Absorption. The inflation variable has a positive and not significant effect on labor absorption in Medan City. The wage variable has a positive and significant effect on labor absorption in Medan City.