Youth Unemployment and Macroeconomic Determinants in Malaysia

Authors

  • Masturan Ma’in Faculty of Business and Management, Universiti Teknologi MARA, 42300, Puncak Alam, Selangor, Malaysia
  • Siti Sarah Mat Isa Faculty of Business and Management, Melaka International College of Science and Technology, 75300, Melaka, Malaysia
  • Nur Fatihah Nabilah Mustaza Faculty of Business and Management, Universiti Teknologi MARA, 42300, Puncak Alam, Selangor, Malaysia
  • Nur Aina Athirah Mohd Johanis Faculty of Business and Management, Universiti Teknologi MARA, 42300, Puncak Alam, Selangor, Malaysia

DOI:

https://doi.org/10.14738/assrj.112.2.16398

Keywords:

Youth Unemployment, Ordinary Least Square, Multiple Linear Regression, Macroeconomics Determinants, Malaysia

Abstract

As youth unemployment has been gradually increasing over the years, it is crucial to investigate which economic indicators that significantly contributed in affecting the Malaysia’s youth unemployment rate. In this study, 30 annual data observations from 1991 until 2020 were used to investigate the empirical relationship between youth unemployment rate (YUR) and gross domestic product (GDP), foreign direct investment (FDI), inflation rate (INFR), gross domestic savings (GDS) and trade (TRD) through multiple linear regression analysis using the ordinary least square method. It is hypothesised that these selected macroeconomic determinants have an effect in influencing the Malaysia’s unemployment amongst youth. The results showed that there is positive significant relationship between youth unemployment rate and trade. Whereas, negative significant relationship was found between youth unemployment rate and the GDP as well as GDS. In contrary, there is no significant relationship exists between YUR with FDI and inflation rate.

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Published

2024-03-06

How to Cite

Ma’in, M., Isa, S. S. M., Mustaza, N. F. N., & Johanis, N. A. A. M. (2024). Youth Unemployment and Macroeconomic Determinants in Malaysia. Advances in Social Sciences Research Journal, 11(2.2), 289–298. https://doi.org/10.14738/assrj.112.2.16398

Issue

Vol. 11 No. 2.2 (2024): Advances in Social Sciences Research Journal

Section

Articles

License

Copyright (c) 2024 Masturan Ma’in, Siti Sarah Mat Isa, Nur Fatihah Nabilah Mustaza, Nur Aina Athirah Mohd Johanis

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