Evaluating the Universality of the Relation between Unemployment and different Economic Determinants Across Developed and Developing

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• Africa
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Unemployment is a global concern for both policy makers and federal governments of different nations. Unemployment is also a social and socioeconomic concern. This is because unemployment impacts economic welfare leads to crime and erosion of human capital, misery and social instability. The present article explored the relation between unemployment rate are inflation rate, the rate of interest of financial institutions, population, GDP (Gross Domestic Product) and Debt/GDP percentage. The results indicated that unemployment rate could not be significantly predicted from inflation rate, the rate of interest of financial institutions, population, GDP (Gross Domestic Product) and Debt/GDP percentage for either developed countries or developing countries. On the other hand, the study clearly indicated that unemployment rate cannot categorize the status of a country as "developing" or "developed." However, the study implicated certain interesting findings. The relation between the unemployment rate and debt/GDP was negative for developed countries and positive for developing countries. This meant that developed countries might use the acquired debt for addressing unemployment while developing countries might not use the acquired debt for addressing unemployment. Hence, international financial institutions should be more stringent while extending financial stimulus to developing countries. One of the criteria for providing financial stimulus to such countries should be to appraise the rate of unemployment in those countries over the past five years. Keywords: “Unemployment rate” “Interest rate” “Inflation rate” “Debt/GDP” “Population”