Analysis of Employment in Small and Medium Industry (SMEs) in South Sumatra

Abstract

This study aims to see Labor Absorption in SMEs in the province of South Sumatra. This study uses multiple regression analysis. Processing application in this study using SPSS. After the determination of the exact model than the classical assumption test, the next step necessary to test the validity of the effect, statistical test F and the coefficient of determination or Adjusted R-Square. The wage variable has a significant effect on employment and a negative value 1.87, this shows that an increase of 1 percent for a wage will reduce the number of employment by 1.87 percent. Variable production values have a significant effect on employment and the positive value of 5, 26, this shows that every 1 percent increase in the production value will increase the number of employment by 5.26 percent. While the capital variable has no significant effect on employment and the positive value of 5.10, this shows that every 1 percent increase to capital will increase the number of employment by 5.10 percent.