The Impact of Unemployment on Economic Growth in Nigeria From 1990 to 2020

ABSTRACT

The aim of this research is to examine the impact of unemployment on economic growth in Nigeria from 1990 to 2020. To investigate the association between unemployment and Gross Domestic Product (GDP), the unit root test, the Augmented Dickey-Fuller (ADF), and the Standard Granger Causality test were used. The Auto Regressive Distribution Lag (ARDL) bounds test is used to decide if the variables have a long run linkage. The ARDL model findings indicate that there is no longrun association between unemployment and economic growth. The findings of this analysis have especially significant policy implications for Nigerian economic policymakers. The observational findings revealed a negligible association between unemployment and economic growth in both the long and short term. The Nigerian government should redirect its spending toward activities that directly and indirectly promote the creation of employment and decent jobs, a conducive environment and flexible labor market policies or legislation that are not impediments to job creation should be created, and finally, the government should prioritize industries that promote labor intensive.