AGRICULTURAL COMMODITY TRADE IN THE INDUSTRY 4.0 ERA: OPPORTUNITIES AND CHALLENGES

FACTORS THAT INFLUENCE ON THE AGRICULTURAL SECTOR LABOR ABSORPTION

Absorption of labor in the agricultural sector is lower than in other sectors, and even tends to decline. This study aims to identify the factors that influence the absorption of labor in the agricultural sector. The research was carried out in Lakbok District with the consideration that it is one of the centers of rice production in Ciamis Regency. The data used in the form of secondary data. Data analysis was performed using multiple linear regression equations. The results showed that the number of productive age population, agricultural land area, agrarian population density, farm productivity, number of people who took formal education, and number of agro-industry had a significant effect on employment in the agricultural sector, either partially or simultaneously.

Keywords: employment, agricultural sector

The agricultural sector must continue to be developed by the government given the large role of the sector

agriculture in economic development (Oktavia, et al., 2016). One of the roles of the agricultural sector is labor absorption (Wahyuningsih, 2015) which tends to decrease (Pranadji and Hardono, 2015; Nugroho, et al., 2018) with an average rate of employment of -2.02% (Alexandi and Marshafeni , 2013) which was caused, among others, by the growth of the industrial sector and the use of technology in the agricultural sector which resulted in capital intensification compared to labor intensification (Yasrizal and Hasan, 2016). Abundant labor in the agricultural sector (Isbah and Iyan, 2016) resulted in a shift in

rural workforce to urban informal sectors (Saptana and Purwantini, 2015). Symptoms of this labor shift are indicated by the reduced interest of the young workforce to work in the agricultural sector because they are considered less able to provide adequate income for a decent life (Darsono et al., 2011), as well as an increase in education and ownership of narrow agricultural land (Nugroho, 2011). et al., 2018). Based on the description above, the purpose of this study is to determine the factors that influence the absorption of labor in the agricultural sector in Ciamis Regency.

RESEARCH METHODS The research was carried out using the secondary data analysis method

using published data from the Central Bureau of Statistics of Ciamis Regency (2018). Lakbok Subdistrict was chosen purposively with the consideration that it is the center of rice production in Ciamis Regency. The data used is in the form of data from 10 villages in Lakbok District which is then analyzed using the following multiple linear regression equation:

Y = 0 + 1 X1 + 2 X2 + 3 X3 + 4 X4 + 5 X5 + 6 X6 Where:

Y = Absorption of labor in the agricultural sector (persons) X1 = Number of productive age population (persons)

X2 = Agricultural land area (ha)

X3 = Agricultural population density (persons/ha)

X4 = Rice farming productivity (tonnes/ha)

37X5 = Number of people who have formal education (persons) X6 = Number of agro-industry (units)

RESULTS AND DISCUSSION

Labor absorption is a certain amount of labor used in a company

certain business units or in other words labor absorption is the number of workers working in a business unit (Ziyadaturrofiqoh, et al., 2018). The results of the analysis of the factors that influence the absorption of labor in the agricultural sector in Ciamis Regency can be seen in Table 1.

Table 1 shows that simultaneously, the number of productive age population, agricultural land area,

agrarian population density, farm productivity, number of people who have formal education, and the number of agro-industry have a significant effect on the absorption of labor in the agricultural sector. The number of productive age population has a positive and significant effect on energy absorption

agricultural sector work. An increase in the number of productive age population will increase the supply of labor in rural areas which has an impact on increasing employment in the agricultural sector. This study is in line with the results of research from Ganie (2017). According to Bappeda West Java (2014), the productive age population is the population aged 1564 years. According to Mashuda and Arief (2016), the productive age population plays an important role in the economic development of a region because the population at that age is able to maximize its potential so that labor productivity will increase which will ultimately affect the total production value. The main problem that is not profitable for the agricultural sector is the change in

demographic structure, namely the number of older farmers (over 55 years) is increasing, while the number of young workers is decreasing. The phenomenon of the aging farmer (aging farmer) and the declining interest of young workers in the agricultural sector adds to the classic problems of agricultural employment so far, namely the low average level of education compared to workers in other sectors. The dominance of old farmers has consequences for the sustainable development of the agricultural sector, especially on agricultural productivity, market competitiveness, rural economic capacity, and furthermore it will threaten food security and the sustainability of the agricultural sector (Susilowati, 2016). The area of agricultural land has a negative and significant effect on employment in the sector

Agriculture. The increase in the area of agricultural land is not accompanied by an increase in the absorption of labor in the agricultural sector, which is thought to be caused by an increase in population education which has an impact on the population

decreased interest in working in the agricultural sector. This study is in line with the results of research from Dewi, et al (2016). Supriyati's research (2012) shows that the shift in labor from agriculture to non-agricultural

agriculture is partly due to the increasingly limited agricultural land, the more open non-agricultural job opportunities, and the increasing education. According to Ruhimat (2015), when the absolute population continues to increase, while the land area and productivity remain, it is certain that there will be a shock to the existence of people's lives, especially people whose dependence on land is very high. The density of the agrarian population has a negative and significant effect on labor absorption

agricultural sector. The increase in the density of the agrarian population has an impact on increasing the fulfillment of food needs from existing agricultural land which results in a decrease in the absorption of labor in the agricultural sector. The density of the agrarian population is the ratio between the number of people who have

population activities in the agricultural sector with a land area that can be processed for agriculture. This type of population density is usually intended for technical purposes, namely to find out the average land owned by farmers (Putra, 2012). Areas that have a large agrarian population density generally experience pressure

population (Ruhimat, 2015). Population pressure caused by a decrease in the carrying capacity of land encourages farmers to expand arable land or open new land, become farm laborers, or look for other jobs outside the agricultural sector by going to the city to be able to meet their needs (Herlindawati, et al., 2018). Farming productivity has a positive and significant effect on employment in the sector

Agriculture. Increasing farm productivity will increase production and income generated by farming which results in increased motivation to work in the agricultural sector so that there is an increase in employment in the agricultural sector. Productivity has a significant effect on income (Andayani, 2016) and the welfare of farmers in Indonesia (Nirzalin and Maliati, 2017). The results of Damayanti's research (2013) show that increased production has an effect on increasing employment opportunities in the agricultural sector. Population education has a negative and significant effect on employment in the sector

Agriculture. The higher the formal education taken by the population, the lower their interest in working in the agricultural sector which results in a decrease in the absorption of labor in the agricultural sector. The results of this study are in accordance with the results of research from Damayanti (2013) and Khaafidh and Poerwono (2013).

Nugroho, et al. (2018) stated that the non-agricultural sector is more attractive to workers

rural areas (agriculture) who have skills so that the higher the level of youth education, the youth will tend to choose or want to work outside the agricultural sector (industry and services). The agricultural sector is unable to provide a wage differential and does not demand a certain level of education. Meanwhile, the non-agricultural sector is able to provide real wage differences and the level of education is clearly a condition for access to the non-agricultural sector. Agriculture, which is dominated by a low-educated workforce, causes the sector to be slow to develop

This is because agricultural business actors tend to be unable to carry out or accept innovations because of the limited mindset of the perpetrators. The number of agro-industry has a positive and significant effect on the employment of the sector

Agriculture. An increase in the number of agro-industry will increase the demand for labor which affects the absorption of labor in the agricultural sector. Karib's research (2012) shows that the number of business units has a significant effect on employment. In line with that, research by Dewi, et al (2016), Romdhoni (2013) and Antari and Widanta (2016) shows that investment has an effect on employment. Investments are expenditures made by the community, especially entrepreneurs, and

It can also be done by the government, to buy capital goods or production equipment (Murni, 2009) to increase the ability to produce goods and services available in the economy (Mulyana, et al., 2018).

CONCLUSIONS AND RECOMMENDATIONS

Number of productive age population, area of agricultural land, agricultural population density, productivity

farming, the number of people who have formal education, and the number of agro-industry have a significant effect on the absorption of labor in the agricultural sector, either partially or simultaneously. Farming productivity needs to be increased through extension activities and technical guidance. Besides

Therefore, it is necessary to make efforts to increase the number of agro-industry through investment policies that encourage the growth and development of agro-industry.