Year: 2025
Type: article
Abstract: Higher rate of unemployment is associated with social, economic, and political challenges for a country.Therefore, the macroeconomic factors which are linked with unemployment are always a matter of great interest for the researchers and policy makers.The instant study analyzed the relative impact of the internal and external factors of the economy affecting unemployment in Pakistan.The annual data from 1990 to 2023 was analyzed by employing ARDL bound test approach.The analysis showed that, in the long run, the secondary school enrollment, financial development, trade openness, and FDI were negatively associated with the rate of unemployment, whereas the inflation rate was positively linked with the rate of unemployment in Pakistan.In contrast, the short-run results indicated that the secondary school enrollment and financial development increased unemployment, however, the trade openness and unemployment negatively impacted the rate of unemployment in Pakistan.Keeping in view the outcomes, it was concluded that the internal macroeconomic factors such as education and financial development, and the external macroeconomic factors such as trade openness and FDI were crucial in combating unemployment in Pakistan.
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: bronze
OpenAlex ID: W7129721807