Emirati higher education graduates prefer working in the public organizations to working in the private sector firms and multinational companies. Thus, this research examines the factors responsible for the reluctance of Emirati higher education graduates to work in the private sector firms. Therefore, this paper is aiming to investigate the relationship youth unemployment and U.A.E gross domestic growth (GDP). The paper has used 20 years' annual secondary data on youth unemployment, education, foreign direct investment, inflation and GDP obtained from Dubai Statistic Center and The World Bank. A statistical package, E-views- 8, will be used to calculate the results for the factor analysis and descriptive statistic. Multiple regressions will be performed with the help of E-views software. The findings of this study indicate that there is a significant relationship between inflation (t-statistics: 2.1781), unemployment (t-statistics: 2.2238), youth education (t-statistics: 2.2944) and U.A.E gross domestic product and the R-square shows that about 30.11% variations in GDP is explained by INF, FDI, UNEMP, POPGROWTH and EDU. These findings have noted that U.A.E youth unemployment have direct effect on U.A.E growth and development. This scenario has brought about stiff competition in the labour market in UAE. In addition, securing government or private jobs by Emirati higher education graduates is fast becoming difficult, and factors such as educational qualification, experience, personality, technicality (specific skills), and supply and demand constraints are determinants of private sector job securement. This paper contributes to tackling the issues regarding unemployment in UAE, as the government is keen to decrease the rates of unemployment by placing the graduates in the private job market. The government accordingly planning to improve the education standard to match the required quality standard and technical skills demanded in the open market. U.A.E government clearly appears to have recognized the imbalance between the job offered by the government and private needed to be addressed. © 2017 Serials Publications Pvt. Ltd.
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