IIARD International Institute of Academic Research and Development

INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH (IJSSMR )

E-ISSN 2545-5303
P-ISSN 2695-2203
VOL. 10 NO. 3 2024
DOI: https://doi.org/10.56201/ijssmr.v10.no3.2024.pg30.48

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Effects of Unemployment Rate on Economic Growth in Nigeria

Ezebunwa Justice Ndukwu and Njoku, Kevin Chinaka (PhD)

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Abstract

The study examined the effects of unemployment rate on economic growth of Nigeria from (1990- 2022). The research focuses on determining the causes and effects of unemployment and how the problem of unemployment in Nigeria was reduced to a minimal level or even eradicated. It focuses on this objective: to determine the relationship between unemployment and economic growth in Nigeria (GDP).The method of analysis used in testing the hypothesis is the t-test, f-test e.t.c. Data for the study were obtained from the World Development Indicators Website for Nigeria.. The major findings were that unemployment rate has a negative effect on the gross domestic product (GDP) of the Nigerian economy. Therefore it was concluded that unemployment rate has negative effects on gross domestic product, government expenditure as well as gross fix capital formation amongst others in Nigeria. based on the results of the study, it was recommended that i. Labour intensive and production in other sectors should be encouraged because; production is more skewed to the oil sector. Better still employment should be created in other sectors of the economy and youth unemployment should also be tackled; these will address the issue of robbery, kidnapping and other social vices presently in the country. There should be concerted effort by the government to make the Nigeria currency more valuable, so as to encourage export especially non-oil export hence inclusive economic growth. This will moderate inflation rate in Nigeria, so that it will not discourage consumption hence economic growth.

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References:

Al-Sawaiea, K.M. (2020). The relationship between unemployment and economic growth in
Jordan: an empirical study using the ARDL approach. Int J Innov Creat Change
14(2):1068–1083.

Anbaraki L, & Ismaili B (2020) Investigating the relationship between drug addiction among
youth and unemployment and its impact on urban security in bushehr province. Boushehr
Danesh Entezami 10(39):53–64.

Anyanwu, J. C. & Oaikhenan, H. E. (2015), Modern Macroeconomics: Theory and Applications
in Nigeria. Joanee Educational Publishers Limited, Onitsha, Nigeria.

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