An Investigation of joint significance of economic growth and inflation rate on unemployment rate in Tanzania

This study aims at investigating the joint significance of economic growth and inflation rate on unemployment rate in Tanzania using time series data for the period of 1990-2021. Quantitative research approach was used. The study used only secondary data to achieve its main objective. In data analysis, the researcher employed Dynamic Ordinary Least Square (OLS) method as a basis of estimation because of its superiority in taking care of simultaneity and small sample bias. To ensure reliability result of the study and hence validity, the researcher applied different test in solving the problem such as using ADF and PP test for unit root. Moreover, through obtaining data from approved credible source, the researcher ensured validity of data and information as well as reliability of data. The researcher observed all ethical issues throughout the study. The findings of this study revealed that gross domestic product (GDP) and inflation rate have effects to unemployment rate in Tanzania. The regression output model showed that inflation has a positive effect to unemployment rate while gross domestic product has a negative effect to unemployment rate in Tanzania. The recommendations made in this study include, Policy makers need to use monetary policy instruments in boosting up the economic growth while maintaining inflation rate at a very moderate level as high inflation rate is the sign of economic instabilities, and efforts should be made by the policymakers in Tanzania to increase the level of output in the economy by enhancing on productivity in order to reduce unemployment rate.