Abstract
The main objective of this study is to investigate the impact of unemployment on Jordan's economy over the period 1991–2019. This study used the auto-regressive distributed lag (ARDL) model to investigate the relationship between the unemployment rate and the other variables. Also, we employ the ARDL bootstrap cointegration approach to examine the correlation and long-run relationship among the variables. The empirical finding indicated a long-run relationship between the unemployment rate, economic growth, education, female population, and urban population in Jordan. Our finding shows the negative linkage between economic growth and unemployment, and a positive relationship among the education, female population, and urban population and unemployment in Jordan.
Highlights
Jordan is a small country (90,000 km square) in the west of Asia, with a high population (9.702 million in 2019)
The main goal of this paper is to investigate the nexus among the unemployment rate and education, economic growth, urban population, and female population in Jordan from 1991 to 2019 (Fig. 1)
Okun found that the unemployment rate declined in the years when the real growth rate was high, whereas the unemployment rate increased in the years when the real growth rate was low or even negative [18]
Summary
Jordan is a small country (90,000 km square) in the west of Asia, with a high population (9.702 million in 2019). Jordan suffers from some economic challenges, such as high rates of poverty, unemployment, inflation, large budget deficit, and public debt that is around 90% of GDP [20]. Unemployment is an important issue in developing countries. The high rate of unemployment means that the country is not using the labor resource efficiently. The issue of unemployment in Jordan reached its highest level in 2019 (around 19%). It created a state of the economic recession caused by a decrease in demand for goods and services that led to a decrease in the production rate. The unemployment problem in Jordan is very
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