Author(s): Kasahun Hasraddin
This comprehensive analysis aims to delve into the intricate relationship between economic growth and unemployment rates. Economic growth is a vital indicator of a nation's prosperity and development, while unemployment reflects the labor market's efficiency and overall economic well-being. Understanding the dynamics between these two factors is crucial for policymakers, economists, and stakeholders in designing effective strategies to foster sustainable economic growth and tackle unemployment challenges. The analysis will adopt a multidimensional approach, encompassing both theoretical frameworks and empirical evidence from various countries and time periods. It will explore the different channels through which economic growth affects unemployment and vice versa, considering both direct and indirect impacts. The study will also investigate the role of various factors such as technological advancements, labor market flexibility, education and skill levels, fiscal and monetary policies, and demographic changes in shaping the relationship between economic growth and unemployment.