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ecline in unemployment will increase output by 1.75 percent. As a result, it will increase the growth rate of the GDP.

Table 2: Results of Regression Analysis

Sources: Zaleha Mohd Noor, Norashidah Mohamed Nor & Judhiana Abdul Ghani

(2007). “The Relationship between Output and Unemployment in Malaysia: Does Okun’s Law exist?” Department of Economics, Faculty of Economics and Management, Universiti Putra Malaysia,Pp.6

1.2 Objectives of the Study

The overall goal of the study is to examine the factors that cause and affect the unemployment in Malaysia. It is important to identify these factors in order to find solutions which can reduce unemployment rate.

The study aim to investigate the factors that cause unemployment such as consumption, investment, government spending and trade. They affect the supply and demand in the labor market. While economic recession may cause lack of job opportunity in the job market.

Moreover, this study also intends to develop some solutions to solve the problem of unemployment. It is expected that this study will achieve the research objective and highlight some important issues which relate to unemployment.

1.3 Organization of Research Study

This study is organized into 3 chapters that will address the overall objective of the research. Each chapter will also serve the purpose of delivering the research following its title.

Chapter 1 briefly introduces the research topic “Relationship between Unemployment Rate and Economic Growth in Malaysia”. Meanwhile, the research objective will be to study the consumption, investment, government spending, as well as the trade that affect economic growth and caused unemployment in Malaysia.

Chapter 2 seeks to support the study by providing various relevant journals and articles on the area of interest of the research. This is also the proof of reading the literature relevant to the area of study.

Chapter 3 discusses the strategy and method used to collect the data. The research frameworks consist of four independent variables, which are consumption, investment, government spending and trade. Meanwhile, unemployment will be the dependent variable. Secondary data collected from Data Stream and research methods are decided.

1.4 Significant of Study

The information gained from this research will be able to provide valuable solution to reduce the unemployment rate in Malaysia. It will also provide Malaysia government with an idea on how important is to reduce the problem of unemployment rate. Reducing the unemployment rate may lead to a better economy in Malaysia due to the increase in productivity of Malaysia. A growth of national income, higher Gross Domestic Product (GDP) in Malaysia will then be achieved while the nations will have higher purchasing power and can lead to a better quality of life.

Investment, indeed, brings a lot of job opportunity in the country. Whenever foreign direct investments (FDI) invest in the country, there will be a lot of industry set up for production and administration. Thus labor demand will be increased due to the investment. It then decreases a certain amount of unemployed.

Another factor to reduce the unemployment is through the government spending. Government needs to build and construct many of the f本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。