Determinants of Unemployment in Nigeria

Determinants of Unemployment in Nigeria

ABSTRACT

The research work investigated the Determinants of Unemployment in Nigeria. The main objective of the study was to examine the determinants of unemployment in Nigeria. The data collected was analyzed using OLS.

The empirical findings provide evidence that there exist a negative and significant relationship between Unemployment and GDP in Nigeria.

The result also revealed that high population increases unemployment in Nigeria and also a positive and significant relationship between inflation and unemployment exist in Nigeria.

Thus the study recommends that government policies aimed at achieving and stimulating economic growth should be vigorously pursued as high economic growth reduces unemployment in Nigeria.

INTRODUCTION               

Unemployment is a macroeconomic problem and also a social problem. It is one of the greatest challenges facing the Nigerian economy.

Unemployment arises as a result of insufficient and non-availability of jobs to correspond with the growing population, even those who are employed sometimes live with the fear of being unemployed due to job insecurity and retrenchment of workers.

Unemployment could be used in relation to any of the factors of production which is idle and not being utilized properly for production.

However, with reference to labour, there is unemployment if it is not possible to find jobs for all those who are eligible and able to work.

Balami (2006) unemployment is conceptualized as a situation where a worker or workers are involuntarily out of work.Unemployment arises when the demand for labour of the factors of production fall short of supply.

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