Impact of Technological Growth on Unemployment Development: A Time Series Analysis of Bahrain Economy

Abstract

Fears existed before or during technological pushes, and that despite the continuous transformation of our societies due to the introduction of new technologies, the population explosion of the past two centuries has been mirrored by a similar creation of new jobs. It is then interesting to consider how these new jobs have been created when they have been created, and what mechanisms facilitated their increase.”Therefore, the current study aims to analyze the effect of the extent of the technology growth on the unemployment in the Kingdom of Bahrain. The study used the secondary data for the last 18 years which was taken from government data streams as well as the World Bank. The unemployment used as a dependent variable and technological growth and labour force participation taken as independent variables, however, education used as a moderator variable in the current study. The study applied the ADF unit root test for stationary analysis and Johansen and Jusilious co-integration test was applied for further analysis because all the variable was stationary at level 1. The findings show that the three variables have a significant negative effect on unemployment. Thus, the study recommended that the government should spend more to improve the technology as well as provide more opportunities to educate the people related to relevant skills of those technologies.