Mathematical Model for the Control of Unemployment on Ghana’s Labour Market

Abstract

Unemployment is one of the major socioeconomic issues across the globe in which Ghana is no exception. The unavailability of jobs and its creation as being searched by persons belonging to the labour force actively looking for jobs makes the problem escalate rapidly in a growing economy. In this seven state model, we analysed into the three main economic sectors of Ghana to investigate how unemployment, employment, and newly created vacancy creation behave at equilibrium on the three economic sector levels. Moreover, we analysed how in a specific sector, the dynamics of the state variables control unemployment. Further analyses on the parameters indicated that, an increase in the rate of newly created vacancies results in a decrease in the number of unemployed persons and an increase in the number of employed. We assumed that a jobless person who is available for work but fails to make an effort to seek work is not part of the unemployed class among others. It was established that the model has one nonnegative equilibrium point. Lastly, we analyse the impact of perturbation of some parameters on the number of the unemployed and employed persons at equilibrium.