Effect of Unemployment on Economic Growth in Nigeria (1981-2014) 

Filed in Economics Project Topic by on October 19, 2020

Effect of Unemployment on Economic Growth in Nigeria (1981-2014) 

ABSTRACT

Unemployment is a situation in which an individual is looking for a job but cannot find one either in private or public sectors of the economy.

Based on this, the research was conducted to investigate the effect of unemployment on economic growth in Nigeria, from the periods of 1981 through 2014.

Using ordinary least square for analysis, other tests were carried out such as unit root test, error correction test, heteroscedasticity test, serial correlation etc. the researcher also looked at the types of unemployment in Nigeria, some of which include underemployment, disguised unemployment etc.

The researcher also focuses his attention on reviewing related literature and theory particularly Keynesian theory of unemployment.

The major findings were that unemployment has a negative impact on the gross domestic product (GDP) of the Nigeria economy and that entrepreneurship education policy of the government has a positive and significant effect to the growth rate of Nigeria gross domestic product. Some suggestions and policy recommendations were made based on the findings.

INTRODUCTION

Unemployment is a situation in which an individual in an economy is looking for job and cannot find one. According to international labour organization (2012),

unemployment occurs when people are without work and actively seeking for job. Unemployment is a global issue that affects developed, developing and under-developed nations of the world.

Unemployment is generally agreed to be a symptom of the macro-economic problem and could be “voluntary” or “involuntary”.

It is said to be voluntary where somebody chooses not to work because they have means of support other than paid employment, for example, an idle rich man.

On the other hand, involuntary unemployment exists when persons who are willing to work at the prevailing rate of pay are unable to find work (Anyanwu 1995).

Furthermore, Balogun et al (2003) defined unemployment as the percentage of the labour force that is without a job

One of the Macroeconomic goals is to maintain full employment, so any country with low economic growth is often characterized by very low capacity utilization, low standard of living, lack of social progress and high rate of unemployment.

REFERENCE

Adebayo.(2001). Youths’ unemployment and crime in Nigeria: a nexus and implication for national development. International Journal of Sociology and Anthropology. Vol. 5(8). Pp. 350-357. December, 2013. Doi: 10.5897/JSA 2013.045. ISSN 2006 – 988X(c) 2013.Academic Journals.

 Adejimola,A.S and Olufunmilayo ,T (2009). Spinning off an entrepreneurship culture among Nigerian university  student; prospect and challenges. African journal of Business Managementvol. 1 No.3 pp 80-88

Agbodike C .I . (2012). The Impact of Unemployment onNigerian Economy (1980-2010),Journal of Research and       Development(RnD), Vol. 2, No.8, 2015

Aiyedogbon, J. O. & Ohwofasa, B. O., (2012). Poverty and Youth unemployment In Nigeria, 1987-2011. International Journal of Business and Social Science, Volume 3(20)[Special Issue].

Ajekomoband Ayanwale (2005).Evaluate of Past Policy: Measure. For Solving   unemployment Problems in Nigeria

Akeredolu-Ale, E. O. (1975).The Underdevelopment of Indigenous Entrepreneurship in Nigeria, Ibadan:     University Press.

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