GDP GROWTH AND UNEMPLOYMENT IN OMAN: EVIDENCE OF JOBLESS GROWTH FROM ARDL APPROACH

Resumen

This study examines the relationship between economic growth, specifically GDP growth, and unemployment rates in Oman, and explores the economic situation in Oman to determine whether there are any indicators of the "jobless growth" phenomenon. Secondary data, namely time-series data from 2000 to 2025, were analyzed using an Autoregressive Distributed Lag (ARDL) approach. The results showed that GDP growth had no statistically significant impact on unemployment during the study period, and the bounds test indicated the absence of a long-term relationship between the variables. These results suggest that GDP growth does not directly and automatically translate into lower unemployment rates. This lack of impact may be attributed to several factors, including the structure of the Omani economy, the structure of the labor market, and the dominance of the oil sector in revenue. The study concludes that GDP growth alone is insufficient to reduce unemployment rates, and the Omani government should adopt policies more focused on job creation. Economic growth should be aligned with the needs of the labor market, particularly in sectors capable of generating sustainable employment opportunities.