Inflation And Unemployment In Uganda (1990—2013)

ABSTRACT

This research based on examining the relationship between inflation and unemployment rates in

Uganda from 1990 -2013 which was guided by three objectives that were establishing the IeeI

of inflation rate in Uganda, determination of unemployment rate in Uganda and investigating the

relationship between inflation unemployment rates in Uganda between 1 990-201 3. The stud

based on quantitative research approach employing the correlation and regression designs. 1 he

findings indicated that inflation rates in the period of 1990 to 2013 had been majorly increasing

with limited stagnations over some years. The prevalence especially from 2007 to 2011 portrays

a worsening economic performance since normal inflation needs to be kept at a single digit.

The researcher found out that Unemployment rate in Uganda. the researcher ~ill observe

whether there was a reduction in Unemployment rate from 2000 to 2002. The rate of

unemployment was further seen increasing with a final stagnation in 2009 to 2012. Results on

the relationship between inflation rate and unemployment from 2002 to 2012 in Uganda

presented a correlation value of 0.059 that is slightly higher than the levels of significance (0.05)

which indicate that there was no significant relationship between inflation rate and

unemployment rate. The ANOVA value of F, 4.416 is larger than the value of significance.

0.059. Therefore, the null hypothesis is accepted. This means that, there is no any correlation between inflation rate and unemployment rate in Uganda under the period of 1990 to 2013.