The Impact of Environmental Factors on Unemployment Rate through Public Health in the KSA During the period 1995-2023

Abstract

This study aims to clarify the mediating role of public health—measured by mortality rates—in the relationship between environmental factors (safely managed sanitation services, clean fuel usage, and per capita carbon dioxide emissions) and unemployment rates in Saudi Arabia from 1995 to 2023. Data were collected from the World Bank database, and causal mediation analysis was employed as a modern statistical approach. COVID-19 was treated as a causal (treatment) variable influencing public health. The results showed a significant positive effect of COVID-19 on both mortality and unemployment rates. Additionally, safely managed sanitation had a significant negative effect on mortality, while better public health significantly reduced unemployment. The findings further revealed that public health played a significant negative mediating role between environmental factors and unemployment, indicating that improved public health conditions helped mitigate the adverse impact of the pandemic on the labor market. This highlights the importance of investing in environmental and health infrastructure to reduce the socioeconomic impact of future health crises. The study concludes that strengthening public health systems can act as a buffer, minimizing the economic consequences of environmental stressors and infectious disease outbreaks such as COVID-19.