The Effect of the Higher Petrol Price on Unemployment by Sectors

Most of the past studies stated that the increase in petrol price caused some economic problems such as the increasing consumer price index, the decrease in the consumption and the shrink in the national output, the increase in unemployment rate and others. This study is to see the impact of the higher oil price on unemployment and by sectors. The data of petrol price, unemployment rate, employment and by sectors is collected and anlayzed. The results of the findings showed that the higher oil price caused the increase in unemployemnt rate in manufacturing, mining and quarrying sector. The higher price petrol had taken place and that the cost of production esnsued. As a result the demand in the product will drop and this would totally affect the manufacturing sector. Finally , various measures that could be taken by the goverment to reduce the effect of the increase in petrol price on unemployment in those sectors