Relationship between population growth, foreign direct investment, interest rate and unemployment rate: evidence from Australia/ Siti Norfazira Abu Bakar

The nature and dynamics of the country's economic development are the subjects of close attention of economists and politicians. Depending on processes and structural changes taken place in the national economy, much hinge in the life of the country and its prospects. Unemployment rate is one of the important macroeconomic issues that all government and economic face. It occurs when a person who is actively searching for employment is unable to find work. The most frequent measure of unemployment is the unemployment rate, which is the number of unemployed people divided by the number of people in the labor force. This study investigates the relationship between unemployment rates between population growth, foreign direct investment and interest rate in Australia from 1979-2017. When the economies of many countries are on the verge of crises, unemployment can be one of the indicators of the complication of the socioeconomic situation of the government. It affects almost all segments of society, ranging from students to retired senior citizens. Unemployment has the most direct and strong influence on every individual. Denied employment for the majority of the population means a decline in the standard of living and causes serious, sometimes dangerous, psychological trauma. This article is to determine the effect of population growth, foreign direct investment and interest rate towards unemployment rate by using time series data from year 1979-2017 in Australia. The finding from this research shows that there are relationships between population growth, foreign direct investment, interest rate with unemployment rate.