Econometric Analysis of the Impact of Unemployment on Burundi Economic Growth

Unemployment is one of the major macroeconomic issues confronting developed countries, particularly developing countries. Unemployment is one of the macroeconomic issues that Burundi is dealing with. Unemployment is a major issue that puts young people at risk of exploitation. Using world bank time series data from 1990 to 2021, this paper investigates the impact of unemployment on economic growth in Burundi. The dependent variable is GDP, while the independent variables are unemployment, inflation, FDI, and gross capital formation. A stationarity test was performed using the Augmented Dickey-Fuller (ADF) and Phillips-Perron tests, which revealed that some variables became stationary at the level and others after first differencing. According to the ARDL model results, unemployment has both short- run and long-run causal effects on GDP. According to the study, industrialization is highly encouraged in order to reduce unemployment and promote economic growth in the country. To foster youth employment by collaborating with the Burundian Diaspora as trainers and distance mentors. Allow diaspora members to participate in projects in Burundi that promote youth employment. Adapt entrepreneurship and employment training strategies for adolescents and youth.