Effects of Unemployment Rate on Economic Growth in Nigeria

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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