Abstract: This study aims to: (1) Analyze the contribution of labor absorption in the agricultural sector to total employment in West Nusa Tenggara Province, and (2) Examine the factors influencing labor absorption in the agricultural sector in West Nusa Tenggara Province. A descriptive method with a quantitative approach was applied, with the unit of analysis being West Nusa Tenggara Province. Data collection was based on secondary time-series data. The analytical methods used were the contribution formula and the Auto Regressive Distributed Lag (ARDL) model using EViews 12 software. The results showed that: (1) Labor absorption in the agricultural sector contributed to total employment in West Nusa Tenggara Province, with a contribution of 35.67%. (2) Labor absorption in the agricultural sector in West Nusa Tenggara is simultaneously influenced by agricultural GRDP, the Farmer’s Exchange Rate (NTP), and the Provincial Minimum Wage (UMP). Partially, current agricultural GRDP and UMP, as well as the NTP from three years prior, had a negative and significant effect, while the NTP from four years prior had a positive and significant effect.
Keywords: Labor Absorption, Contribution, Agricultural Sector, Auto Regressive Distributed Lag.
Title: ANALYSIS OF LABOR ABSORPTION IN THE AGRICULTURAL SECTOR IN WEST NUSA TENGGARA PROVINCE
Author: Baiq Saopi Nadiawati, Suparmin, Taslim Sjah
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
Vol. 13, Issue 1, April 2025 - September 2025
Page No: 350-359
Research Publish Journals
Website: www.researchpublish.com
Published Date: 21-July-2025
