Unemployment Rate Forecasting via Markov Chains
Unemployment is an economic and social phenomenon that has many effects and problems that directly affect society and could result in many problems in the future. Therefore, it is one of the most significant challenges confronting the globe today, as unemployment rates have reached critical levels. The aim of the research is to predict the unemployment rate for the coming years through the Markov chains method. The current variables of a particular phenomenon are analyzed in order to predict future variables to the phenomenon itself. The results indicated that the probability of an increase in the unemployment rate in the coming period, followed by a decrease in the unemployment rate and, finally, stability. The present findings can help decision makers to make the right decisions to face the problem of unemployment.