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Title: Impact of Unemployment on Economic Growth in Nigeria (2000 – 2020)
Author(s): IHIM Ogechi Linda
Abstract: Unemployment represents a significant waste of a country’s manpower resources. It leads to a reduction in national output, aggregate income and overall wellbeing of the citizens. The study investigated the impact of unemployment on economic growth in Nigeria from 2000 to 2020. Data on GDP growth rate, unemployment rate, labour force participation rate and inflation rate were obtained from the CBN Statistical Bulletin and World Bank Indicators. The data analysis techniques employed in this study are ADF’s unit root test, Johansen’s cointegration tests and ECM model. The findings showed that unemployment rate and inflation rate have negative impact on economic growth in Nigeria. The result also indicated that Labour force participation rate has positive impact on GDP growth rate which implies that an increase in labour force participation rate will promote economic growth. Therefore, the study recommends that government should support the real sector economy by providing a conducive and enabling environment for business enterprises to thrive as it is certain that government can’t provide jobs for all, hence an enabling environment will make people create business ideas and innovations which in the long run will strengthen the value of Naira, reduce poverty and unemployment rate as well as foster economic growth in Nigeria.
Keywords: Unemployment rate, Inflation rate, Labour force participation rate, Economic growth
Journal: Economic and Social Science Review (ESR)

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