A study on determinants of unemployment rate in Malaysia / Norzuriena Merawi

The unemployment has considered as a major economy problem in many development countries. In Malaysia, most of the unemployment people are among of the fresh graduate. This study is to determine the determinants of the unemployment rate (UR) in Malaysia. The underlying issue is to investigate the relationship between the unemployment rate and the other determinants such as a Gross Domestic Product (GDP), Inflation Rate (IR), Population (POP) and Foreign Direct Investment (FDI) by using the multiple regression analysis models. The analysis are carried out based on the time series for 30 years from 1979 - 2008. Using the results, conclusions are drawn the relationship among the determinants to the unemployment rate. The findings are show there is a significant relationship between the unemployment rate and Gross Domestic Product, Inflation rate, population and Foreign Direct Investment. All of these findings are consistent with most previous study.