Impact of Inflation, Information, Communication and Technology on Unemployment: An Analysis from Developing Countries

Abstract

Unemployment has been observed as a major issue among the developing and developed economies. Economists and policymakers have provided several choices to deal with this major problem, but economies are still experiencing this problem. Labor force participation rate, industrialization, and information and communication technology seem to be affecting the unemployment rate among the developing economies. Considering the significance, the existing work has focused on the role of these factors affecting the unemployment rate. We have used the unemployment rate as the dependent variable. However, exports, inflation, labor force participation rate, industrialization, and information and communication technology have been used as independent variables. The random effect result showed that labor force participation rate affected the unemployment rate significantly. Moreover, exports, industrialization, and information, communication, and technology seemed to be decreasing the unemployment rate in developing economies. The study findings recommend more technical education and skills for labor to be absorbed in jobs and industries. Moreover, the Government should focus on the provision of information, communication, and technology to achieve high economic growth and lower unemployment.