Analysis of Internal Factors Affecting Employment in Small Industries Convection of Clothing in North Binjai District

Oct 13, 2025 by wbrum.org 6 views

Analysis of Internal Factors Affecting Employment in Small Industries Convection of Clothing in North Binjai District

Introduction

In the context of small industries, especially in the field of clothing convection, employment is a very important issue to be analyzed. The ability of small industries to absorb labor is crucial for the growth and sustainability of these businesses. Research has shown that various internal factors can influence the recruitment process of new employees in small industries. This study aims to investigate the influence of wages, productivity, and working capital on the ability of small industries in absorbing labor in North Binjai District, Binjai City.

Background of the Study

The North Binjai District is a region with a high concentration of small industries, particularly in the field of clothing convection. These industries play a significant role in providing employment opportunities for the local community. However, the ability of these industries to absorb labor is often hindered by various internal factors. Research by Siti Khadijah Hidayati Nasution (2013) investigated various internal factors that influence the recruitment process of new employees in North Binjai District. Under the guidance of Dr. Rahmanta, M.Sc and Dr. Rujiman, M.A, this research focuses on the influence of wages, productivity, and working capital on the ability of small industries in absorbing labor.

Research Methodology

This study uses the census method to collect data from all convection business actors in North Binjai District. By using multiple linear regression analysis, the results of the study give a clear picture of how much influence each factor on employment. The analysis results show that 93.50% of variations in employment can be explained by three main variables: labor wages, labor productivity, and working capital. The remaining 6.5% is explained by other factors not covered in this study.

Main Findings

Labor Wages: Although this variable has a positive influence on labor absorption, the effect is considered insignificant. This shows that although the wages offered can attract prospective workers, other factors may be more dominant in the recruitment decision process. The significance of labor wages in attracting workers is often overlooked, but it is essential to consider other factors that may influence the recruitment decision process.
Labor Productivity: The results show that productivity has a negative and significant influence on labor absorption. This can be interpreted that if the existing employee productivity is already high, the industry tends to be more careful in recruiting additional new workers. In this context, companies may prefer to increase efficiency rather than increasing the number of employees. High productivity can be a double-edged sword, as it may lead to a decrease in labor absorption.
Working Capital: Working capital has proven to have a positive and significant effect on employment. The greater the working capital owned by the company, the greater the ability to recruit new workers. Sufficient working capital allows the company to invest in training and employee development, thereby improving the quality of the workforce. Working capital is a critical factor in determining the ability of small industries to absorb labor.

Conclusion

This study provides valuable insights for stakeholders in small industries of finished clothing convection, especially in terms of recruitment strategies. Factors such as working capital and productivity must be a major concern in decision making related to employment. Companies must consider increasing their working capital in order to increase the ability to recruit, while monitoring productivity to remain balanced with the needs of labor. With this analysis, it is expected to encourage the growth of small industries that are more sustainable and highly competitive in North Binjai District.

Recommendations

Based on the findings of this study, the following recommendations are made:

Small industries in North Binjai District should prioritize increasing their working capital in order to improve their ability to recruit new workers.
Companies should monitor their productivity levels to ensure that they remain balanced with the needs of labor.
Stakeholders in small industries should consider investing in training and employee development programs to improve the quality of the workforce.
Further research should be conducted to investigate other internal factors that may influence the recruitment process of new employees in small industries.

Limitations of the Study

This study has several limitations that should be acknowledged. Firstly, the study only focuses on small industries in North Binjai District, and the findings may not be generalizable to other regions. Secondly, the study only investigates three internal factors that influence the recruitment process of new employees, and other factors may also play a significant role. Finally, the study only uses multiple linear regression analysis, and other statistical methods may provide different results.

Future Research Directions

This study provides a foundation for further research in the field of small industries and employment. Future studies should investigate other internal factors that may influence the recruitment process of new employees, such as company culture, employee motivation, and job satisfaction. Additionally, studies should be conducted to investigate the impact of external factors, such as government policies and market trends, on the ability of small industries to absorb labor.

References

Siti Khadijah Hidayati Nasution (2013). The Influence of Internal Factors on the Recruitment Process of New Employees in Small Industries in North Binjai District. Master's Thesis, Universitas Sumatera Utara.

Dr. Rahmanta, M.Sc and Dr. Rujiman, M.A (2015). The Role of Small Industries in Providing Employment Opportunities in North Binjai District. Journal of Small Business Management, 53(2), 251-264.

Appendix

The appendix includes the following:

List of variables used in the study
Description of the data collection method
Results of the multiple linear regression analysis
Discussion of the limitations of the study

Note: The content of the appendix is not included in this response, as it is not relevant to the main body of the article.
Frequently Asked Questions (FAQs) about the Analysis of Internal Factors Affecting Employment in Small Industries Convection of Clothing in North Binjai District

Q: What is the main objective of this study? A: The main objective of this study is to investigate the influence of wages, productivity, and working capital on the ability of small industries in absorbing labor in North Binjai District, Binjai City.

Q: What is the significance of this study? A: This study provides valuable insights for stakeholders in small industries of finished clothing convection, especially in terms of recruitment strategies. The findings of this study can help small industries to improve their ability to absorb labor and increase their competitiveness in the market.

Q: What are the main findings of this study? A: The main findings of this study are:

Labor wages have a positive influence on labor absorption, but the effect is considered insignificant.
Labor productivity has a negative and significant influence on labor absorption.
Working capital has a positive and significant effect on employment.

Q: What are the implications of this study? A: The implications of this study are:

Small industries in North Binjai District should prioritize increasing their working capital in order to improve their ability to recruit new workers.
Companies should monitor their productivity levels to ensure that they remain balanced with the needs of labor.
Stakeholders in small industries should consider investing in training and employee development programs to improve the quality of the workforce.

Q: What are the limitations of this study? A: The limitations of this study are:

The study only focuses on small industries in North Binjai District, and the findings may not be generalizable to other regions.
The study only investigates three internal factors that influence the recruitment process of new employees, and other factors may also play a significant role.
The study only uses multiple linear regression analysis, and other statistical methods may provide different results.

Q: What are the future research directions? A: The future research directions are:

Investigating other internal factors that may influence the recruitment process of new employees, such as company culture, employee motivation, and job satisfaction.
Investigating the impact of external factors, such as government policies and market trends, on the ability of small industries to absorb labor.

Q: What are the practical implications of this study? A: The practical implications of this study are:

Small industries can use the findings of this study to improve their recruitment strategies and increase their ability to absorb labor.
Stakeholders in small industries can use the findings of this study to inform their decisions about investing in training and employee development programs.
Policymakers can use the findings of this study to inform their decisions about supporting small industries in North Binjai District.

Q: What are the theoretical implications of this study? A: The theoretical implications of this study are:

The study contributes to the existing literature on the factors that influence the recruitment process of new employees in small industries.
The study provides a framework for understanding the complex relationships between internal factors and labor absorption in small industries.
The study highlights the importance of considering multiple factors when analyzing the recruitment process of new employees in small industries.

Q: What are the policy implications of this study? A: The policy implications of this study are:

Policymakers can use the findings of this study to inform their decisions about supporting small industries in North Binjai District.
Policymakers can use the findings of this study to develop policies that promote the growth and development of small industries in the region.
Policymakers can use the findings of this study to inform their decisions about investing in training and employee development programs for small industries.