The Relationship Between Inflation And Unemployment In The Saudi Economy (Impact Analysis And Treatment)

Abstract

The phenomenon of inflation and unemployment is one of the most important problems facing the various economies of developed and developing countries, including the Saudi economy. There is a strong relationship between the level of inflation and the unemployment rate, as the rise in the level of inflation is accompanied by a decrease in the level of unemployment, and vice versa as the Saudi economy is witnessing successive waves of inflation and unemployment. Production of crude oil among the oil producing countries. Therefore, its dependence on a successful oil policy may have a negative or positive impact on various other economic sectors. In all cases, oil revenues will not achieve the desired economic development. Inflation and unemployment may rise, or inflation and unemployment may rise together. In this case, the nature of the Saudi economy differs from some developing economies in terms of the causes of inflation, this phenomenon depends on other economies as a result of this economy depends on the import of most goods and services from abroad. Unemployment is unrelated to the productive factors that cause inflation. However, the rate of inflation and unemployment in the Saudi economy still suffers from structural imbalances and a clear distortion in its production base.