Abstract

The purpose of this study was to analyze the effect of Sectoral economic growth on labor absorption, analyze the effect of economic growth on the welfare of society, analysis the influence of labor absorption on community welfare.

The analysis technique used in this research is path analysis. This analysis was developed as a method to study the effect directly or indirectly from independent variable to dependent variable.

The results showed that the growth of the primary sector, and the secondary directly affect the absorption of labor, while the service sector has no effect on the absorption of labor. Then the growth of the secondary sector and the service sector directly affects the welfare of the community and indirectly affect the welfare of the people through the absorption of labor.

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