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Research Article | Volume 3 Issue 1 (Jan-June, 2022)
Does Unemployment Cause Economic Growth In Nigeria?
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 ,
Under a Creative Commons license
Open Access
Published
Jan. 31, 2022
Abstract
Unemployment is a major challenge facing the socio-economic life of most developing nations. It deters the development agenda, security of lives and properties, and peaceful co-existence of a nation. This study therefore investigated the causal relationship between unemployment and growth, with reference to Nigeria. Autoregressive Distributed Lag Model was adopted, having subjected the data from World Bank Development Indicators and Central Bank of Nigeria online bulletin to stationarity test and Bound Test using Peasaran and Shin Bounds. The results from the analysis have shown that Nigeria has not fully harnessed its human resources as reflected in the high rate of unemployment, worsened by the outbreak of Coronavirus disease. This non-harnessing of human resources has negatively influenced economic growth of the country although, it is not a major determining factor of growth. The result further affirmed that unemployment rate exhibits a ripple effect, implying that unemployment of previous years lingers on for a long period of time and as a result increases the rate of unemployment of current and preceding years. Based on the strength of the findings, it was recommended that government and its relevant authorities should create enabling environment for business and foreign investment to strive, and also, reduce the cost of doing business so as to create employment opportunities and achieve a high, rapid and sustainable economic growth.
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