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Assessing the Effects of Skill Mismatch and Insecurity on Youth Unemployment and Economic Growth in Nigeria

Cajetan C. Anuforo Kenechukwu K. Ede

Abstract

This study examines the impact of skill mismatch on youth unemployment and economic growth in Nigeria from 2005 to 2024. The results reveal that skill mismatch remains a major structural barrier to employment and sustainable growth, with mismatch levels averaging between 18% and 22%, corresponding to persistently high youth unemployment rates of 20% to 27%. The findings indicate that many Nigerian youths possess qualifications misaligned with labour market demands, rendering them unemployable despite increasing educational attainment. Periods of heightened skill mismatch, notably between 2014 and 2017, coincide with spikes in unemployment and slower GDP growth, confirming that human capital inefficiencies constrain productivity and weaken the growth-employment link. Conversely, moderate improvements in skill alignment led to slight declines in unemployment and marginal increases in growth rates. The study concludes that Nigeria’s capacity for inclusive and sustainable development is hindered not merely by low output but by the irrelevance of workforce skills. It recommends aligning education and vocational training with market needs through investment in technical and vocational education, curriculum reform, stronger academia–industry partnerships, and continuous skill upgrading among youths to enhance employability, stimulate private investment, and accelerate economic diversification for long-term growth.

References

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