This research aims to analyze Factors influence the Labour Absorption in Small Industry in Special Region of Yogyakarta. The subject of this research is Regencies/City in Special Region of Yogyakarta. Data used in the research were secondary data about business unit, value of investments, values of production, and minimum wage which used time series data during periode 2009 – 2014 from Department of Industry, Trade, and Cooperative (Disperindagkop), Special Region of Yogyakarta. The analysis instrument which used in the research was panel data regression model with E-views 7.0 sofware. Based on the analysis, it may be concluded that the variable of business unit amount had the most significant influence in influencing the Labour Absorption in small industry. The value of investments variable gave positive and significant influence. The value of production variable gave negative and significant influence. While the minimum wage variable had positive and insignificant toward the labour absorption in small industry in every Regencies/City in Special Region of Yogyakarta.