Abstract

Java Island ranks among the most densely populated regions in Indonesia. Such rapid population growth can lead to various challenges and constraints in the development process, primarily due to the resulting increase in labor supply. This study investigates the impact of investment, wage levels, education quality, and economic growth on labor absorption in Java. Through quantitative analysis with utilizing the Fixed Effect Model (FEM) approach, the findings reveal that both investment and wages have a statistically significant influence on employment. Increases in investment and wages across Java contribute collectively and substantially to higher employment levels. These findings suggest the importance of harmonizing policy implementation between the central and regional governments in order to boost job creation and support social welfare, ultimately contributing to broader economic stability