THE IMPACT OF UNEMPLOYMENT OF HIGHER EDUCATION GRADUATES ON ECONOMIC GROWTH IN LIBYA

Abstract

The study attempts to understand if the increase in the level of employment of new graduates in the Libyan universities contributes positively to increasing the economic growth. Thus the study aims to investigate the relationship between unemployment of higher education graduates and economic growth in Libya. To measure the strength of correlation between unemployment and economic growth in Libya, the study conducted a quantitative survey and statistical analysis based on simple linear regression. The findings from this approach determine the degree of association between unemployment and economic growth. Economic growth is highly predicted by the variation in unemployment rate in a reverse relationship, where unemployment decreases then economic growth increases and vice versa. The results of this study highlight the importance of unemployment to Libyan government. The government may need to lower the level of unemployment in order to enhance the economic growth. Previous studies on consumer animosity did not investigate the effect of unemployment of fresh graduate from higher education on economic growth in the country. This study contributes to the body of knowledge by linking fresh graduates unemployment with economic growth. The examination of their qualifications and their training are sought to be provided in the future. The results also help the government to provide more job opportunities and raise economic growth in return.