Abstract

This study aims to analyze the effect of regional gross domestic product, district/city minimum wage, local revenue, labor force, and unemployment on labor absorption dynamics and influencing factors (case study in districts/cities in NTB Province). This study uses an associative quantitative approach with panel data regression analysis using the Fixed Effect Model (FEM) processed using Eviews 13 to test the relationship between these variables. The data in this study uses secondary data with a sample of 10 districts/cities during the 2017–2024 period in West Nusa Tenggara Province, namely West Lombok District, Central Lombok District, East Lombok District, Sumbawa District, Dompu District, Bima District, West Sumbawa District, North Lombok District, Mataram City, and Bima City. The results of this study show that the variables, gross regional domestic product, have a positive but insignificant effect, the minimum wage of the regency/city has a positive and significant effect, local revenue has a positive and significant effect, while the number of the labor force has a positive but insignificant effect, and the number of unemployed has a positive but insignificant effect on labor absorption.

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