THE EFFECT OF UNEMPLOYMENT ON ECONOMIC GROWTH IN NIGERIA (1980-2010)

Code No: 431478

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ABSTRACT

The study was designed to investigate the effect of unemployment on economics growth in Nigeria for a period of 31 years (1980-2010). It focus is to determine the relationship between unemployment and economic growth in Nigeria (GDP).The finding was that unemployment has a positive but insignificant impact on the gross domestic product (GDP) of the Nigeria economy, Despite the fact that the effect of unemployment on economic growth is not significant, its positive coefficient suggest that unemployment rate is also increasing over time, so the study recommends policies reverse this trend. The study included that government should formulate policies that will help in proper check of annual unemployment rate, and its outcome on the effort to reduce it, in order to know how to battle it, the coming year.

CHAPTER 1

CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
In the developing economies, unemployment has been and still is the countries number one economic problem. This problem has posed a great challenge to many countries [both developed and developing].it has been categorized as one of the serious delay to social progress. Apart from representing a big waste of a countries man power resources it generates welfare losses in terms of low output thereby leading to lower income and economic wellbeing.
Unemployment can either be voluntary or involuntary voluntary in the sense that one chooses not to work because he or she has means of support other then employment. On the other hand involuntary unemployment exists when persons who are eligible and willing to work at the prevailing rate of pay are unable to find work or employment [anyanwa 1995].
In recent times the incidence of unemployment in Nigeria has been a wide spread cutting across all faces of age groups education state and geographical entities.
The unemployment problem was more rampant in Nigeria in the 1980 than any other period for instance the unemployment rate rose from 4.3 in 1976 to 64 in 1980.it was also recorded between 5.3 and 64 during 1980 to 1985 period.
Government and policy makers are increasingly finding it difficult to grapple successfully with youth unemployment this high rate of unemployment can be blamed on lack of adequate provision for job creation in development plans the over expanding educational growth and the desperate desire on the part of youths to acquire university education irrespective of course and course contents as a result a number of skills acquired from the university appear dysfunctional and irrelevant [Celine 1999].
The socio economic effect of unemployment includes fall in national output increase in rural urban migration waste of human resources high rate of dependency ratio poverty all sorts of immoral acts and criminal behavior e.g. robbery etc all these can categorized into no or low economic growth the social effect of unemployment brings to light the need to proffer possible solution to salvage our nation Nigeria.