ANALYSIS OF THE DYNAMICS OF LABOR ABSORPTION IN WEST SUMATRA PROVINCE IN 2018-2020

Abstract

The study aims to analyze the situation of employment in West Sumatra Province using indicators such as the employment status, sector/business field, and type of work, labor productivity, and labor elasticity during the period 2018-2020. The descriptive quantitative approach was employed, using secondary data from Badan Pusat Statistik (BPS). The data used include the main job status, economic sector, type of work, and constant price GRDP. The statistical data obtained describe the characteristics of the employment situation in the Province of West Sumatra. Information on the results of data analysis is visualized in the form of tables, graphs, and descriptions. Calculations are carried out to determine the value of labor productivity and elasticity. This method is carried out by calculating the ratio between the growth of employment opportunities and the growth of GRDP from different time points. The results of this study indicate that employment status in West Sumatra is dominated by formal workers. The primary and tertiary business sectors absorb more labor than the secondary sector. The agricultural, forestry, hunting, and fishery business workers are very dominant in absorbing labor in West Sumatra Province in 2018-2020. Total labor productivity decreased in 2020 due to a decrease in regional income in several sectors/business fields during the Covid-19 pandemic. Labor elasticity by sector/business field in West Sumatra mostly has a value of less than zero with the water supply, waste management, waste, and recycling sectors having the highest labor elasticity values.