Study of the unemployment problem by mathematical modeling: Predictions and controls

ABSTRACT

One problem that has become a concern for governments around the world is unemployment. We illustrate the problem using a nonlinear system of differential equations considering three dynamical variables: the number of unemployed people, the number of employees and the number of available vacancies. We find that the system possesses one positive equilibrium point which is locally and globally stable under certain conditions. We identify the employment rate and the rate of creating new vacancies that is required to reach the unemployment rate of 7% in agreement with the efforts of governments to attain low unemployment levels.keywords: Unemployment; Stability; Routh Hurwitz; Lyapunov function; Numerical simulation

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Research involving human participants and/or animals

This article does not contain any studies with human participants or animals performed by any of the authors.