GOOD GOVERNANCE AND ITS ROLE IN REDUCING UNEMPLOYMENT

Abstract

This study attempts to explain the role of governance quality in reducing unemployment through a theoretical analysis. Governance quality is of great importance to fostering an environment conducive to job creation and economic stability. Given this importance, we particularly address the role of the rule of law, regulatory efficiency, government effectiveness, transparency, and accountability. In this regard, this study argues that strong governance not only promotes trust in economic and political systems; but also supports the efficient allocation of resources, which, in turn, stimulates investment and job growth. Moreover, well-functioning institutions are key to designing and implementing policies that address unemployment, especially in contexts where labor market rigidities or market failures prevail.