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Purpose of the study: This research aims to analyze the impact of private investment toward social welfare through economic growth and labor absorption in East Java Province of the 2010-2017 periods. Methodology: The type of research used is Explanatory by using the approach of a quantitative method. Data collection used research instruments. Data analysis is quantitative/ statistical with the aim to test the determined hypothesis. Main Findings: The results of the study show that: (1) Private investment is not significantly influential toward economic growth; (2) Private investment is significantly influential toward labor absorption; (3) Economic growth is significantly influential toward labor absorption; (4) Economic growth is not significantly influential toward social welfare; (5) Labor absorption is not significantly influential toward social welfare. Applications of this study: Private Investment unit, Economic Growth, Absorption of Labor and Social welfare is obtained through the Statistics Agency within the period of 2010-2017. Novelty/Originality of this study: The Effect of Economic Growth on Labor Absorption had a significant effect on labor absorption in East Java. It was proven by the t value of 3.800 which means that it was higher than 1.96. Thus, it could be explained that the high labor absorption could be increased through the existence of economic growth in East Java.

THE IMPACT OF PRIVATE INVESTMENT IN THE IMPROVEMENT OF SOCIAL WELFARE THROUGH ECONOMIC GROWTH AND LABOR ABSORPTION