An Analysis on the Economic Factors Affecting the Unemployment Rate in the Philippines from 1993-2018

Abstract

The study aims to determine the factors affecting the unemployment rate from 1993-2018 using the OLS estimators. With 26 observations, the research utilized six independent variables, namely GDP growth rate, inflation rate, foreign direct investment, government spending, capital investment, and trade openness. The dataset was taken from The Global Economy and the Philippine Statistics Authority. Furthermore, as the dataset was processed, it was found that GDP growth rate, inflation rate, foreign direct investment, and trade openness have a significant relationship with the dependent variable. On the other hand, government spending and capital investment have no significant relationship with the unemployment rate.