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<p>In the face of escalating unemployment rates and the pressing demand for sustainable development, this paper examines the dynamic interplay between technological innovation, information and communications technology (ICT), financial inclusion, and governance quality—key components of the knowledge-based economy and the Sustainable Development Goals (SDGs) 9 and 16—on unemployment (SDG 8) across diverse regions. Using a panel dataset spanning 2004 to 2020 for five regions (Middle East and North Africa, Sub-Saharan Africa, Latin America, Asia, and Europe), a dynamic two-step system generalized method of moments (GMM) estimator is applied. This method is particularly well-suited for our study, as it effectively addresses endogeneity and heterogeneity by employing lagged variables as instruments, while the panel data framework enables us to capture both cross-sectional and temporal variations. Despite extensive prior research on individual aspects of these relationships, there remains a significant gap in understanding how these factors interact regionally to affect unemployment. Notably, the results challenge prevailing assumptions by revealing that technological innovations and ICT advancements are linked to increased unemployment in certain contexts—technological innovations drive technological unemployment in Latin America, and ICT proliferation is associated with higher unemployment rates across all regions. Moreover, the effects of financial inclusion and governance quality on unemployment vary markedly by region. These contradictory findings underscore the complexity of the relationships between sustainable development goals and unemployment, stressing the need for tailored and region-specific policy responses that align sustainable development strategies with labor market realities. Taken together, the findings illustrate region-specific pathways through which innovation, finance, and governance interact with labor markets, providing the empirical knowledge needed for SDG-aligned job-creation strategies.</p>

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Sustainable Development Goals and Unemployment: Worldwide Evidence

  • 期刊论文

  • 出版模式：

    开放获取

  • 发表日期：

    2025年6月5日

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  • Peter Eshak Nashed Soliman,
  • Reham Salah Beram

摘要

In the face of escalating unemployment rates and the pressing demand for sustainable development, this paper examines the dynamic interplay between technological innovation, information and communications technology (ICT), financial inclusion, and governance quality—key components of the knowledge-based economy and the Sustainable Development Goals (SDGs) 9 and 16—on unemployment (SDG 8) across diverse regions. Using a panel dataset spanning 2004 to 2020 for five regions (Middle East and North Africa, Sub-Saharan Africa, Latin America, Asia, and Europe), a dynamic two-step system generalized method of moments (GMM) estimator is applied. This method is particularly well-suited for our study, as it effectively addresses endogeneity and heterogeneity by employing lagged variables as instruments, while the panel data framework enables us to capture both cross-sectional and temporal variations. Despite extensive prior research on individual aspects of these relationships, there remains a significant gap in understanding how these factors interact regionally to affect unemployment. Notably, the results challenge prevailing assumptions by revealing that technological innovations and ICT advancements are linked to increased unemployment in certain contexts—technological innovations drive technological unemployment in Latin America, and ICT proliferation is associated with higher unemployment rates across all regions. Moreover, the effects of financial inclusion and governance quality on unemployment vary markedly by region. These contradictory findings underscore the complexity of the relationships between sustainable development goals and unemployment, stressing the need for tailored and region-specific policy responses that align sustainable development strategies with labor market realities. Taken together, the findings illustrate region-specific pathways through which innovation, finance, and governance interact with labor markets, providing the empirical knowledge needed for SDG-aligned job-creation strategies.