The Potential of Leading Sectors in an Effort to Increase Employment in North Sumatra Province

Abstract

This research basically aims to determine the leading sectors of the regional economy in North Sumatra Province and
the potential of the leading sectors in an effort to increase employment in North Sumatra Province which can later be
used as information material in planning economic development. The data used in this study is secondary data in the
form of time series, namely 2013-2021. The data used comes from of the Central Bureau of Statistics North Sumatra
and supported by library data. To find out the leading sectors of North Sumatra Province using quantitative methods,
namely location quotient analysis, Shift Share analysis, classen typology analysis. To find out the potential of the
leading sector for employment in North Sumatran Province, a quantitative method is used, namely the Ordinary Least
Square (OLS) model. While the descriptive method is used with the demometric approach modeled by J. Ledent
(1978). The results of this study can be concluded that based on the overlay analysis of the three analytical tools,
namely LQ analysis, Shift Share and Klassen Typology, the sectors that meet the combined analysis criteria that have a
positive coefficient are the agricultural, forestry and fisheries sectors; Wholesale and retail trade sector, car and
motorcycle repair; and the real estate sector. Based on the explanation of the results of the analysis in more depth it is
described that the agricultural, forestry and fisheries sectors are the largest contribution in North Sumatra Province
with the results of the LQ analysis of 1,96, the commodity sector which has the largest contribution to competitive
advantage and as a developed and rapidly growing sector (developed sector). ). Based on this research, it can be seen
that the leading sectors that influence the absorption of labor in North Sumatra Province are the real estate sector and
the trading sector.