ANALISIS PASAR TENAGA KERJA DALAM PERTUMBUHAN EKONOMI PADA PROVINSI DI PULAU JAWA TAHUN 2015-2024

This study aimed to analyze the effect of the labor market on economic growth in provinces across Java Island during the period 2015–2024. The labor market was represented by supply-side indicators, namely average years of schooling, life expectancy, labor productivity, and the number of employed labor force. Government expenditure was included as a control variable. The study used panel data from six provinces in Java and applied panel data regression analysis using the Fixed Effect Model (FEM). The results showed that, simultaneously, labor market variables had a significant effect on economic growth. Partially, average years of schooling had a negative and significant effect, while life expectancy had a positive but insignificant effect. Meanwhile, labor productivity and the number of employed labor force had positive and significant effects on economic growth. Government expenditure as a control variable did not have a significant effect. These findings indicated that labor productivity and employment absorption were the main drivers of economic growth in Java. Therefore, improving labor quality and efficiency should be prioritized in regional economic development policies.