An ARDL estimation is conducted to examine the dynamical connection among energy use and joblessness in Saudi Arabia

Abstract

The rate of joblessness in Saudi Arabia has been a major worry in the past few years, exhibiting swings because of several economic causes. The nation has the formidable task of accommodating a substantial influx of fresh graduates into the labor market annually, posing an obstacle for government officials to offer sufficient employment prospects. Nevertheless, there has been a lack of comprehensive research on the influence of macroeconomic variables, such as energy consumption, on joblessness. The objective of this study is to examine the influence of several macroeconomic factors, such as foreign and domestic investment, trade liberalization, inflation, urbanization, economic growth, and energy consumption, on the levels of unemployment in Saudi Arabia. The ARDL estimate method was used to assess the yearly data spanning from 1971 to 2022. The findings indicate a varied anticipated influence of the independent and dependent variables over an extended period of time. While there is a short-term negative correlation between energy consumption and rate of joblessness, this relationship does not hold true in the long term. The study culminates with a compilation of policy suggestions.