ELASTISITAS PERTUMBUHAN INDUSTRI PENGOLAHAN TERHADAP KONTRIBUSI PENYERAPAN TENAGA KERJA INDUSTRI PENGOLAHAN DI KOTA PALU

The manufacturing sector is a strategic pillar of regional economic development due to its significant role in
generating added value and creating employment opportunities. However, in Palu City, the growth of this sector
has not consistently translated into proportional increases in employment absorption. This study aims to analyze
the elasticity of manufacturing sector growth with respect to its contribution to employment absorption in Palu
City over the period 2019–2023. A descriptive quantitative approach was employed, utilizing secondary data
obtained from the Central Bureau of Statistics (BPS) of Palu City and relevant agencies. The data set comprises the
manufacturing sector's Gross Regional Domestie Product (GRDP), the number of workers in the manufacturing
sector, and thetotal workforce in Palu City. The analysis involved calculating both output and employment growth
rates, followed by thecomputation oflabor absorption elasticity using theelasticity ratio formula. The results reveal
that the relationship between manufacturing output growth and employment absorption in Palu City is volatile and
not always proportional, as indicated by the elasticity measurements of manufacturing GRDP growth relative to
employment growth in the sector. Certain years recorded negative elasticity values, reflecting inverse relationships
driven by internal sectoral dynamics such as efficiency gains, technological adoption, and external shocks including
the COVID-19 pandemic. The study concludes that although the manufacturing sector makes a substantial
contribution to economic growth, its impact on job creation remains suboptimal. As such, integrated policies are
needed to align industrial growth with sustainable employment and improve regional welfare.
Keywords: Economic Growth, GRDP, LaborElasticity, Manufacturing Industry, Palu City.