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The Impact of Inflation and Population Growth on Unemployment in<br />

Malaysia<br />

Nur Sariah binti Wan Hassan<br />

Dr. Bayu Taufiq Possumah<br />

Bachelors of Economics (Natural Resources)<br />

School Of Social and Economy Development<br />

This paper discusses the impact inflation and population growth on unemployment in<br />

Malaysia. Inflation is a sustained increase in the general price level of goods and<br />

services in an economy over a period of time while population growth refers to the<br />

increases of individuals in a population. The independent variables are inflation and<br />

population growth while dependent variable is unemployment in Malaysia. The study<br />

was conducted based on latest qualitative secondary data which obtained from 1986<br />

till 2016 for all those variables. This study covers time series data, then the statistical<br />

test such as Unit Root Test, Vector Auto regression Estimates (VAR) Test, White Test<br />

Heterokedasticity and Ramsey Reset Test are used. Study findings show that there is<br />

a positive relation between population growth and unemployment, meanwhile there<br />

is no relation between inflation and unemployment in Malaysia.<br />

1454 | UMT UNDERGRADUATE RESEARCH DAY 2018

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