It is hypothesized that population growth has a strong impact on unemployment in nigeria. Federal government recurrent expenditure have no significant effect on economic growth in nigeria. Pdf effects of youth unemployment on socioeconomic. Creeping or mild inflation can be viewed as having favourable impacts on the economic growth. The ordinary least squares ols and augmented dickeyfuller methods are used to estimate the model of one dependent. The effects of unemployment on economic growth and development are humongous. Impact of unemployment on nigerian economy project material.
Unemployment is one of the major issues affecting nigeria s economy and its society. Get free research paper on impact of population growth on unemployment in nigeria. Despite the growth of the nigerian economy, poverty is still on the increase and this calls for a shift from monolithic oilbased economy to a more plural one with agriculture being the lead sector. Population growth and economic development in nigeria. Unit root and johansen cointegration tests were carried out to determine stationarity and longrun relationship among. To check whether population growth has any impact on unemployment in nigeria. First is its impact on the revenue government generates from taxes. The impact of federal government expenditure on economic. Table2 economic effect unemployment nigeria economy table from and nigerian growth worksheet. Pdf the impact of economic growth on employment in nigeria. Strong economic growth therefore advances human development, which, in turn, promotes economic growth. To proffer appropriate solution recommendation to authority in.
Unemployment does not have significance impact on economic growth in nigeria. This thesis investigates the effects of unemployment and inflation on economic growth in nigeria between 19862012 through the application of ordinary least square ols technique in estimating the effects of unemployment and inflation on growth, augmented dickeyfuller test and phillip. The nigeria economy has experienced robust gdp growth rates over the reform period 2000 to 2010. To ascertain the rate of population growth that affect unemployment. The result shows that there is a long run relationship between unemployment and economic growth in nigeria. Agricultural production and economic growth in nigeria. The unemployment rate is vital in any economy as it is one of the determinants of economic growth and development in developed and developing nations.
Government expenditure and economic growth in nigeria. Nigeria economic outlook top 10 themes for 2019 disclaimer this document has been prepared for general guidance on matters of interest only, and does not constitute professional advice. Interest rate has significant impact on the gdp of the economic growth in nigeria. Impact of population growth on nigeria economic growth mensch. These were with the view to analyze the impact of unemployment on economic growth and proffer recommendations towards enhancing economic growth and reducing unemployment in nigeria in this present.
Impact of inflation and economic growth on unemployment in sri lanka. Pdf the impact of unemployment on economic growth in. Pdf analysis of the effect of unemployment on the economic. It was recommended that pro poor policies should be designed for. Such problems include high unemployment rate, low investment, high rate of inflation and unstable foreign exchange rate. The impact of unemployment and inflation on economic growth. To determine the relationship between unemployment and economic growth in nigeria. The study set three major objectives which include determine the relationship between economic growth, inflation and unemployment. Research methodology this work effectively captures the effect of unemployment on economic growth of nigeria using the ols method together with the adf test for unit root. Pdf nigeria has enjoyed a long period of sustained economic growth since 2001 and yet, there is rampant unemployment in the country. It is assumed that a positive relationship exists between population growth and unemployment. Government programmes have in many ways helped in tackling the problems of unemployment in nigeria. These were with the view to analyze the impact of unemployment on economic growth and proffer recommendations towards enhancing economic growth and reducing unemployment in nigeria in this present time economic challenges. Unemployment and economic growth in nigeria in the 21st century.
Timeseries data for the period 1990 2011 were used to examine the impact of inflation on economic growth. Causes, effects and solutions to youth unemployment. From 2011 to 20 there is an increase of 16% unemployment growth rate in nigeria. The data used were sourced from the central bank of nigeria database and world bank data bank. The results of the test hypotheses revealed that unemployment impedes the economic growth and development of nigeria. The findings showed that there is no longruns relationship between unemployment rate and economic growth in nigeria. Purpose to investigate and determine the effects of unemployment and inflation on economic performance in nigeria within the specified period as in the title and to establish the relationship between unemployment and inflation with real gross domestic product in nigeria. Significance of the study the nature of nigeria economy has made it to be unbearable for the people existing in the country over the years, nigeria economy is having unbalance of payment that could be easily financed for domestic product and hence external. These perceived problems are being claimed to have caused a fast decline in the economic growth of nigeria. Theory of growth one of the most important indicators of the increase in the level of economic and social welfare of a country, the phenomenon of economic growth is a constant debate on economists.
Does unemployment significantly impact on economic. The elasticity of output with respect to unemployment is negative and significant at 1 percent level of significance. Impact of inflation and unemployment on nigeria economic growth 19812015. An analytical study of the impact of unemployment on economic. The data used were sourced from the central bank of nigeria. Uniprojects aim of providing impact of unemployment on nigerian economy project research material is to reduce the stress of moving from one school library to another all in the name of searching for impact of unemployment on. The unit root properties of the series were tested.
Nigeria has maintained remarkable growth over the last decade, recording an average growth rate of 6. The study also focuses on the effects of population growth on economic growth in nigeria in a bid to analyze the options available to accelerate economic development, taking into cognizance of the fact that other factors outside the sphere of population are also important in the determination of the face of economic growth. As the twentyfirst century began, the worlds population was estimated to be almost 6. The impact of unemployment on economic growth in china. Therefore, this study will be of paramount importance to economic decisionmakers, as it will equip them with the knowledge and skills needed to tackle the pressing issue of unemployment. The impact of unemployment on economic growth includes. Pdf the impact of unemployment on economic growth in nigeria.
To achieve this objective, secondary data has been taken from central bank annual reports for the. However these high levels of economic growth have not translated to the expected increase in employment opportunities for a rapidly growing young population. This means that economic growth could be accelerated effectively by reducing the level of unemployment in the economy. In nigeria, there have been lots of studies that examined unemployment and economic growth. There are possible ways that could be put forward in ensuring the reduction of unemployment level in nigeria. A study of selected local government area in anambra state. Impact of unemployment on economic growth of nigeria mensch mind. The impact of population growth on nigeria economic growth 19812015. It aims at examining the dynamic effect of unemployment on growth in the context of. Does unemployment significantly impact on economic growth in nigeria. Impact of unemployment on nigerian economic development. The impact of monetary policy on the economic growth of nigeria.
Econometric analysis of time series data from central bank of nigeria was conducted. It, therefore, becomes necessary to highlight the monetary policy in nigeria. An analytical study of the impact of inflation on economic. The study examined the impact of government expenditure on economic growth in nigeria, using the time frame 20002015 5 years. Studies on contribution of education to growth and development of an economy have shown that there is casual relationship between education and economic growth. Impact of inflation and economic growth on unemployment. The objective of this paper is to analyse the impact of inflation on economic growth in nigeria for the period 1970 to 2016. Effects of unemployment and inflation on economic growth in. The findings showed that there is no long runs relationship between unemployment rate and economic growth in nigeria. This implies that unemployment hinders economic growth in the short run. Does unemployment significantly impact on economic growth in.
Employment, unemployment, skills and economic growth. Utilizing secondary data with ols regression method, their results confirmed that interest rate and total public expenditure bares significant impact on economic growth in the long run whereas on the contrary, inflation and unemployment has inverse effects on growth in the nigerian economy. After all, you cannot give what you do not have and so unemployed people are unable to pay taxes because. These results are in line with okens law and are consistent to the findings by pierdzioch et al 2009 and stephen 2012. This study examined the relationship between unemployment and economic growth in nigeria. Structural transformation and jobless growth in nigeria. The nigerian economy has remained largely underdeveloped despite the increases in growth rate declare every year. In nigeria, there have been lots of studies that examined unemployment and economic growth relationship. Effects of exchange rate fluctuations on economic growth.
The rate of unemployment has increased during last few years due the fallout from the economic challenges. Analysis of the effect of unemployment on the economic. The impact of economic growth on employment in nigeria. Hence, the effects of various macroeconomic shocks depend on the exchange rate policy adopted by the country, it is therefore important to investigate the effects of exchange rate fluctuations on the nigeria economic growth and also the factors that influence exchange rate in nigeria.
The impact of unemployment and inflation on economic. Specifically, the study intends to examine the impact of unemployment on the nigerian economic growth and testing the sensitivity of output to change in. The rising rate of the population of the country which is faster than the job opportunities available, a situation in which birth rate is rising, death rate falling and the population growth rate is between 2. The right level of economic growth, and thus the right level of inflation, some were in the middle. This research work therefore, focuses on analyzing the impact of population growth on the economy of nigeria which is among africa and asian developing countries portrayed as one of the most critical situations in the world. Causes, effects and solutions to youth unemployment problems. Impact of unemployment on economic growth of nigeria.
Impact of foreign direct investment on unemployment rate in. As a debate, due to nigeria s less availability of capital, low level of industrialization, high rate unemployment, etc. Impact of unemployment on nigeria economic growth 19812017 pdf. Abstract this study examines the impact of unemployment on the economic growth of nigeria from 1985 to 2010. Employment, unemployment, skills and economic growth an exploration of household survey evidence on skills development and unemployment between 1994 and 2014. Impact of unemployment on economic growth in nigeria 1980 2010. In nigeria, the unemployment situation has become more severe due. As a result, the unemployment rate, which also reflected. Oil prices still low coupled with production cuts nigeria economic outlook top 10 themes for 2019 source.
The impact of unemployment on economic growth in nigeria. Pdf the impact of economic growth on unemployment in. The granger causality test shows a unidirectional relationship between unemployment and nigerias economic growth. But under different conditions, similar rates of growth can have very different effects on poverty, the employment prospects of the poor and broader indicators of human development. In recent years, job creation and the quality of jobs have been marred by a slowdown in economic growth, and the recession. Pdf effects of economic growth on poverty reduction in. Economic growth and the unemployment rate congressional research service summary a persistently high unemployment rate is of concern to congress for a variety of reasons, including its negative consequences for the economic wellbeing of individuals and its impact on the federal budget. Understanding the relationship between growth and employment. Impact of population growth on nigeria economic growth. Economic growth and the unemployment rate congressional research service summary a persistently high unemployment rate is of concern to congress for a variety of reasons, including its negative consequences for the economic wellbeing of individuals and its impact. Impact of unemployment on nigerian economy project. Motivated by this controversial, this study examined the impact of inflation on economic growth and established the existence of inflation growth relationship.
Impact of unemployment on economic growth in nigeria. The study involves comparative analysis of the impact of fiscal policy on economic growth in nigeria during regulation and deregulation periods. This study examines the relationship between growth and employment in nigeria to gain insights into the countrys paradox of high economic growth alongside rising poverty and. As a debate, due to nigerias less availability of capital, low level of industrialization, high rate unemployment, etc. The impact of taxation is integrated into growth models by its impact on the individual growth variables, which are capital accumulation and investment, human. Does unemployment significantly impact on economic growth.
These results provide en evidence that domestic investment, exports and labors are seen as a source of economic growth in malaysia jel classification. The impact of inflation on unemployment in nigeria 200120. Effects of unemployment and inflation on economic growth. The impact of domestic investment on economic growth. Impact of unemployment on economic growth in nigeria 1980 2010 hauwa buba jajere kaduna state university email. Latest available data from the national bureau of statistics nbs puts nigeria s unemployment rate at 18. Lets talk about the causes, effects and possible solutions to unemployment in nigeria.
Please, sit back and study the below research material carefully. Impact of inflation and unemployment on economic growth of. The impact of unemployment and inflation on economic growth in. Abstract this paper examines the effect of inflation and economic growth on unemployment in sri lanka for the period 19902012. The importance, how to, effect causes relationship, comparison, history, role, solutions are discussed. Specifically, the study intends to examine the impact of unemployment on the nigerian economic growth and testing the sensitivity of output to change in unemployment rates in both short run and long run. This is because it focuses on evaluating the impact of federal government expenditure on economic growth in nigeria. It would be useful to discuss growth theories before debate the literature on economic growth and unemployment. The unemployment rate is still high, economic growth rate is low, etc. The findings also shows that there is strong relationship between inflation and economic growth in nigeria, that exchange rate has positive impact on economic growth and that high interest rate discourages investment and hence forestalls economic growth. Also, the findings revealed that unemployment in nigeria increased from 21.