The manufacturing industry is the sector that has contributed to the GDP which is quite high in North Sumatra. This research aims to analyze the factors that affect the absorption of labor in manufacturing industries in Northern Sumatra. Based on this research can be kedahui that a variable number of business units, the value of the output, and the GDP has a positive influence and significantly to the absorption of labor on large and medium industries. This study uses secondary data from the year 2011-2015 and the method used is the data panel with SE13 Stata analysis tool.