Effect of Unemployment Rate on Growth Rate of Gross Domestic Product of Jordan

Abstract

This study explains the effect of unemployment rate on growth rate of GDP of Jordan by depending on yearly data for the period (2009 – 2016) as unemployment rate is independent variable, and growth rate of GDP (Avariable of economic growth) as a dependent variable. This study focuses on explaining the literature both in theoretical and empirical ways of the effect of unemployment rate on growth rate of GDP, and analyzing the effect of unemployment rate on growth rate of GDP of Jordan by depending on yearly data for the period (2009 – 2016) by using the technique of ordinary least squares in version of E-views. This paper found that there are insignificant impacts of unemployment percentage to total labor force, unemployment of males percentage to male labor force, unemployment of females percentage to female labor force on growth rate of GDP of Jordan by relying on yearly data for the period 2009 to 2016 at level of significance 5%. This paper recommends testing the impacts of other obstacles in Jordan on growth rate on GDP, in order to know the variables that effect growth rate of GDP in Jordan.