THE IMPACT OF UNEMPLOYMENT ON NIGERIA ECONOMIC GROWTH 1970-2015

ABSTRACT

Unemployment is a phenomenon that occurs when a person who is actively searching for employment is unable to find work. Unemployment is often used as a measure of the health of the economy. The most frequently measure of unemployment is the unemployment rate, which is the number of unemployed people divided by the number of people in the labor force.
The level of unemployment varies with economics conditions and other circumstances. This is mostly seen in under developed nations like Nigeria.

The level of unemployment varies with economics conditions and other circumstances. This is mostly seen in graduate of various institutions of learning especially in under developed nations like Nigeria. The study was designed to investigate the impact of unemployment on economics growth in Nigeria of 41 years (1970-2010). The research focuses on determining the cause and impacts of unemployment, and how the problem of unemployment in Nigeria will be reduced, to a minimal level or even eradicated. It focuses on this objective is toa determine the relationship between unemployment and economic growth in Nigeria (GDP). The method of analysis used in testing the hypothesis is the hypothesis is the T-test, F-test etc. the major findings was that unemployment has a negative impact on the gross domestic product (GDP) of the Nigeria economy. Some suggestions and policy recommendations were made based on the findings.

TABLE OF CONTENT

Title Page                                                                                                                    i 

Certification                                                                                                                ii

Dedication                                                                                                                  iii

Acknowledgments                                                                                           iv

Abstract                                                                                                                      v

Table of Contents                                                                                                       vi

CHAPTER ONE

1.0 Introduction                                                                                              1

1.1 Background of Study                                                                                                       2

1.2 Statement of Problem                                                                                                       4         

1.3 Research Questions                                                                                                           5

1.4 Objectives of study                                                                                                           6

1.5 Statement of hypothesis                                                                                       7

1.6 Justification of study                                                                                                        7

1.7 Scope and limitations of study                                                                             7

CHAPTER TWO – REVIEW OF RELEVANT LITERATURE

2.1 Theoretical Literature                                                                                                        9

2.2 relationship between Unemployment and Inflation                                             13

2.3 Causes of unemployment in Nigeria                                                                     14

2.4 Consequences or effects of unemployment                                                          19

2.5 Unemployment and economic recession                                                               21

2.6 Theoretical Framework                                                                                         22

2.7 Conflict of Theory                                                                                                            23

CHAPTER THREE- METHPDOLOGY

3.0 Methodology                                                                                                                    25

3.1 Research Questions and Hypothesis                                                                     25

3.2 Methods of Evaluation or Data Analysis                                                             27

3.2.1 Economic Theoretical Test                                                                                 28

3.2.2 Statistical Critical                                                                                                           29

3.2.3 Econometric Critical                                                                                          30

3.3 Data Required Source, Transformation                                                                30

CHAPTER FOUR- DATA ANALYSIS, PRESENTATION AND INTERPRETATION

4.0 Introduction                                                                                              31

4.1 Presentation of Regression Result                                                                                    31

4.2 Economic Apriori Criteria                                                                                                 32

4.3 Statistical Criteria (Frist Order Test)                                                                    34

4.3.1 Coefficient of Multiple Determinants (R2)                                                        34

4.3.2 The Students T-Test                                                                                           35

4.3.3 F Statistic                                                                                                                       36

4.4 Econometrics Criteria                                                                                           37

4.4.1 Test for Autocorrelation                                                                                                37

4.4.2 Normality Test for Residual                                                                              38

4.4.3 Test for Heteroscedasticity                                                                                38       

4.4.4 Test for Multicollinearity                                                                                               39

CHAPTER 5

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION

5.1 Summary                                                                                                               41

5.2 Conclusion                                                                                                                        41

5.3 Recommendation                                                                                                  42

        Appendix                                                                                                                        44

        References                                                                                                                      49