Determinants of Unemployment in Bahrain
Sara Ebrahim Alrayes, Rami Mohammad Abu Wadi

Abstract
This study was conducted to find out the determinants of unemployment in Bahrain. The objectives of the study were to find out the way in which the Gross Domestic Product (GDP), Inflation, Government Expenditure, and Gross Rate of Fixed Capital Formation affects unemployment and to make up policy recommendations from the finding of the study. The study used time series analysis from the year 1980 to 2015. The study found that there is no significant impact of economic growth and inflation on unemployment in Bahrain while there is a significant impact of fixed capital formation and government expenditures on unemployment in Bahrain. The recommendations of the study are that the government should pursue policies that promote economic growth, Gross Rate of Fixed Capital Formation, and carefully and empirically assessed public spending.

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