Title: Macroeconomic determinants of unemployment in ECOWAS countries

Authors: Peterson K. Ozili

Addresses: Central Bank of Nigeria, Central Business District, Abuja, FCT, Nigeria

Abstract: Unemployment is a major issue in ECOWAS countries and its determinants are not well-known. We investigate the macroeconomic determinants of unemployment in ECOWAS countries using data from 1993 to 2021. The data were analysed using the panel fixed effect and random effect regression methods. It was found that real GDP growth and central bank asset to GDP ratio are significant macroeconomic determinants of unemployment while inflation rate and domestic private credit have an insignificant effect on unemployment in ECOWAS countries. It was also found that higher domestic private credit significantly decreases unemployment during periods of economic expansion while periods of deflation decrease the rate of unemployment in ECOWAS countries. Positive economic growth is associated with low unemployment in ECOWAS countries.

Keywords: unemployment; economic growth; ECOWAS; real GDP growth; central bank; inflation; West Africa; domestic credit to private sector.

DOI: 10.1504/IJSE.2025.148979

International Journal of Sustainable Economy, 2025 Vol.17 No.4, pp.373 - 396

Received: 01 May 2024
Accepted: 24 Jul 2024
Published online: 07 Oct 2025 *

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