Economic growth and unemployment in Nigeria: an empirical perspective

Abstract

In the past decades, the Nigerian economy had experienced substantial economic growth before the economy slipped into recession in 2015. It is highly paradoxical that economic growth has not metamorphosed into employment generation in the country during these years. As such this study examined the relationship between economic growth and unemployment in Nigeria within the framework of ARDL and ECM. Consequently, the findings that originated from study could be summarised as follows: economic growth and unemployment rate have a significant positive relationship in the short run. This implies that the Nigerian economy experienced jobless growth in the short run but reverse is the case in the long run. Finally, this study recommends that if inclusive growth (unemployment reduction) is the goal of the policy makers in Nigeria, policies that will ensure increasing productivity in all the sectors of the economy and discouraging importation should be embarked upon in the country.