Unemployment, Inflation and Economic Growth in Nigeria

ABSTRACT

The study examined the relationship between unemployment, inflation and economic growth in Nigeria between the period of 1981 – 2020. Specially, to ascertain the casual relationship between unemployment rate, inflation rate and gross domestic product (GDP) in Nigeria. The research design adopted the quasi-experimental research (Expo-fator) design. The model specification was to show the relationship between the real gross domestic product growth (RGDP) as the dependent variab1e and unemployment (UNE) and inflation rate (INFL) as the independent variables. In carrying out this research work, data would be sought through secondary source from the CBN Statistical Bulletin and Annual Report, 31st December, 2020. The data were analysed using the least square and through the aid of Econometric view (E-view). Findings emanating from this study shows that entire regression plane was statistically insignificant; this means that the joint influence of the explanatory variables (INFL and UNE) on the dependent variable (RGDP) is statistically insignificant i.e. it hasn’t culminated into tangible results yet. It was concluded that recession has had a negative though insignificant effect economic growth in Nigeria within the sample period. In summary it was recommended that government and its relevant authorities should provide conducive investment environment by removing the structural rigidities that exist in the economy to create jobs.