The determination of unemployment rate in Malaysia / Nurfitrah Ayu Che

The reason why this study is conduct is because unemployment gives lot of harmful effect to the country and society. The economy also suffers if the unemployment rate is increase. As more people become unemployed, government expenditure continue to grow which increase government borrowing. The objectives of this study are to determine the relationship between independent and the dependent variable, to identify the variables that give the most impact to the dependent variable and to analyze the significance of the independent variables and dependent variable. The topics selected were entitled as “The Determination of Unemployment Rate”. In this study, the times series used over 30 years data period. The data was collected from Department of Statistics Malaysia (DOS).
The results from the various analyses done showed that there is negative relationship between real gross domestic product and rate of unemployment while population and inflation showed positive relationship. Multiple regression method used resulting that that the most influenced independent variables is population due to the largest number of coefficient value. Only the population and inflation are significantly influenced the rate of unemployment in Malaysia. Meanwhile, real gross domestic product does not significantly affect the rate of unemployment in Malaysia. But then, this model still can be accepted because the high value of F-statistic. Furthermore, the study fulfills the objective of this project paper which is to identify the factors that influence the rate of unemployment in Malaysia.