Comparative Analysis of Unemployment Rates Between China and India

Abstract

This study examines the unemployment rate in two major developing economies, China and India, to forecast their economic trajectories. Through an autoregressive integrated moving average (ARIMA) model, this study analyzes historical trends and potential future scenarios that can help make informed decisions for sustainable growth. By evaluating the literature on the labor market, informal economy, demographics, and the impact of technology, this study enriches the understanding of these intricate economies. The study concludes that Chinas unemployment rate has remained stable, indicating an equilibrium, while Indias unemployment rate has fluctuated slightly, which may be due to health crises, technological shifts, and global trade dynamics. This study emphasizes the role of domestic policies, demographic and global economic factors in influencing unemployment rates. Overall, this study provides insights into the dynamics of unemployment in China and India, providing a valuable resource for policymakers, researchers, and businesses to understand the complexities of these economies.