ANALYSIS OF THE INFLUENCE OF REAL WAGES, INVESTMENT AND EDUCATION LEVEL ON LABOR ABSORPTION

Abstract

Unemployment is one of the unresolved problems from year to year in various countries, including Indonesia. This problem cannot be ignored because if the unemployment rate is high, it will result in increased crime, poverty, and other social-economic phenomena. This study aims to analyze the effect of real wages, investment, and level of education on employment. The results of the analysis show that real wages have a negative and insignificant effect on employment absorption, investment has a positive and significant effect on employment absorption, and the level of education has a negative and significant effect on employment absorption.