Youth Unemployment and Its Impact on Economic Growth: An Analysis

Abstract

Economic life in emerging countries is dominated by challenges such as unemployment and inflation. For the period 2009-2015, this study attempts to estimate the short-run tradeoff between inflation and unemployment in the Indian economy in order to determine whether such a tradeoff exists. For a short period of time, inflation and unemployment have an inverse connection, with more inflation leading to lower unemployment. In the first model, the dependent variable is unemployment; in the second model, inflation; and in the third model, real GDP is the dependent variable. The results of the study show that unemployment has a statistically insignificant influence on inflation and real GDP. According to the data, unemployment has a negative impact on inflation and a positive impact on real GDP. With a large impact on employment, prices, the standard of living of citizens, and the real GDP of countries in developing regions, unemployment is a recurring issue in all of these economies. There is a strong correlation between unemployment and inflation, although this correlation is not substantial in our current economic situation. As a result, the most important policy.