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.
