The main objective the establishment of a regional course in order to create prosperity for its people. Efforts should be made so that these objectives can be realized by workers must be absorbed optimally. This study aimed to analyze Determinants That Affecting Labor Absorption in the Special Region of Yogyakarta. The data used in the form of a panel composed of the number of workers absorbed which is the dependent variable, while the independent variables used is the Gross Domestic Regional Product (GDRP), wage, and investments which are all taken from five districts in the period 2007 -2014. The analytical method used is quantitative method with panel data regression methods Common Effect on the real level of 1 percent. The results showed during the years 2007-2014, in general, an increasing number of workers absorbed in Special Region of Yogyakarta. Variable GDRP is significantly positive effect on employment, ceteris paribus. Wage variable is no significant and negative effect on employment, ceteris paribus. Variable investment is significant and negative effect on employment, ceteris paribus. The results of this study are not consistent with the hypothesis. That is because the quality of labor in low Yogyakarta is also an obstacle, it is in the background backs by factors internal and external conditions of labor. Some suggestions are given, among others is fiscal policy should be directed at improving the quality of education and skills to increase the number of educated workforce. Governments and businesses need more support and enhance the performance of the economy in the services sector, manufacturing, and agriculture. Lastly, investment is expected to be allocated for labor-intensive program.