Macroeconomic Determinants of Unemployment Rate in WAEMU Countries: A Panel Data Approach

The aim of this article was to assess the impact of macroeconomic variables on unemployment in West African Economic and Monetary Union (WAEMU) countries over the period 1991-2020, using World Development Indicators, World Governance Indicators, and global climate data from the University of Delaware. Using the dynamic ordinary least squares estimator, the results showed the negative effect of the rainfall shock index, trade openness, and the corruption control index on unemployment. Additionally, GDP growth proved conducive to reducing unemployment, while inflation, information and communication technologies, and financial development proved insignificant. Based on the results obtained, the countries studied should take steps to contain the negative effects of rainfall anomalies, notably by strengthening agricultural risk prevention instruments. Furthermore, to take advantage of the opening of trade, the authorities will have to turn to industries that are less automated but potentially more job-creating, particularly in the agri-food and metals sectors.