This paper examines the long-run co-integration relationship between
unemployment and macroeconomic variables in the Malaysian labour market.
Econometric methods of Auto-regressive Distributed Lag (ARDL) Method is
employed. This study found that there is a stationary long-run co-integration
relationship between unemployment and macroeconomic variables in
Malaysia. Unemployment in Malaysia does not suffer due to mismatch in the
labour market. Economic growth and foreign direct investment are found to be crucial in reducing unemployment in Malaysia
