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Business & Economics

ANALYSIS OF THE CHARACTERISTICS OF THE FACTORS INFLUENCING THE UNEMPLOYMENT RATE: A COMPARISON OF THREE ASEAN COUNTRIES
Peter Karacsony, Huyen Nguyen Thi Khanh, Laszlo Vasa

ABSTRACT: Socio-economic issues, including inflation, business volatility, overcrowding, poverty, begging, and falling living conditions, are getting worse and worse every day in the modern day. Unemployment is one of the most hazardous and debilitating issues for any economy among such unfathomable issues. Unemployment is a term often used in macroeconomics to refer to the state of people of working age who have full working capacity and need to find a job but do not yet have one. The unemployment rate is an indicator that affects the economic development of a country, and governments often have to have the most effective unemployment rate management policies. The study focuses on inflation factors, including wages, economic growth, and education. Each country has different effects of the above factors on the unemployment rate. This study shows different conclusions across countries. For the overall population, through the analysis of a sample of all three countries, wage and education have a negative impact on the unemployment rate. This is essentially consistent with many other studies where an increase in wages leads to more workers entering the labour force. The studied countries are all major economies in Asia. For a country with a high growth rate like Vietnam, drivers such as increasing wages or boosting education clearly increase job opportunities and simultaneously reduce unemployment.

KEYWORDS:  unemployment, labor economics, labor management, inflation, ASEAN, Asia

JEL classification:  J01, J04, M54, R23