Unleashing the power of economic forces: exploring the relationship between macroeconomic factors and unemployment in Norway and uk using ARDL approach

The problem of unemployment is a global issue and it vital to carry out detailed examination this issue. We need identify analyze several factors affecting in country. aim research determine how various macroeconomic interact with each other. This includes trade, oil consumption, domestic credit private sector, gross capital formation inflation context Norway UK. basic purpose study whether the effect these on significant or insignificant. In order conduct study, period 1979-2021 used. To find impact independent variables unemployment, executes KPSS NG- Perron test variable stationary not, then apply ARDL long run short Co-integration between variables. According our findings, there Cointegration present Unemployment bank lending formation, Oil consumption show insignificant relation case Norway. If we talk about UK all factor are significantly Co-integrated run. Diagnostic tests also considered which include Serial correlation, Heteroscedasticity, normality, functional form, CUSUM square. results provide non-significant probability value higher than 0.1 implies that error term has no serial correlation variance homoscedastic along well-defined forms errors exhibit characteristics normal distribution. SQUARE for both countries stability mean term.
 Key words; - Unemployment, Macroeconomics factor, Norway, bounce