Macroeconomic performance is judged by three broad measures unemployment rate, inflation rate, and the growth rate of output ugwuanyi. The nigerian economy has remained largely underdeveloped despite the increases in growth rate declare every year. So this study aims at finding the relationships between unemployment rate and variables like gdp growth rate, inflation rate cpi based, openness of trade, and private domestic investment in nigeria, but also to find what gaps there may be in the literature. The rate of unemployment has increased during last few years due the fallout from the economic challenges. Determinants of the rate of unemployment in nigeria.
Too many restive youths promenade the streets of africas most populous nation in search of jobs while trying their acts on nefarious activities when they are bored of job hunting. Over the years there have been a number of economists trying to interpret the relationship between the concepts of inflation and unemployment. Understanding the relationship between unemployment and. The consumers price index a measure of inflation rate, was regressed on unemployment rate, growth rate of money supply, budget deficit, real gross domestic. Although several people, producers, consumers, professionals, nonprofessionals, trade unionists, workers and the likes, talk frequently about inflation particularly if the situation has assumed. Effects of unemployment and inflation on economic growth in. Provision of infrastructures such as good roads, ware house, market. This statistic shows the unemployment rate in nigeria from 1999 to 2019. The solutions to unemployment are combinations of the remedies of the causes of unemployment in nigeria. Inflation and unemployment impact economic the economy through reduction in purchasing power, rising unemployment, rising poverty, lower aggregate demand, poor foreign and domestic investment, poor economic growth among others.
Unemployment is one of the major issues affecting nigerias economy and its society. As a result, this study sets out to investigate the relationship between inflation. Asekunowo1 this study sought to identify the traditional and institutional inflation variables responsible for inflation phenomenon and the magnitude of the contribution of the identified variables to the rise in general price level. Unemployment and inflation are two economic concepts widely used to measure the wealth of a particular economy. The result shows that a 1% increase in inflation rate will reduce unemployment rate by 0. Nigeria inflation rate 19962020 data 20212022 forecast. American university of nigeria department of economics impact of population growth on unemployment in nigeria senior research project by habiba edward gideon a00017037 in partial fulfillment of the requirement for the degree of bachelor of arts in economics by the school of arts and sciences, american university of nigeria. Lets talk about the causes, effects and possible solutions to unemployment in nigeria. Inflation, unemployment, stagflation, inflation crunch, nigeria, economy, world, depression, recession, targeting, phillips curve. Undoubtedly, parts of the macroeconomic goals which the government strives to achieve are the maintenance of stable domestic price level and full employment. Unemployment convergence among the 36 states in nigeria being.
This is in line with the phillips hypothesis that an inverse relationship exists between inflation and unemployment. These twin problems are currently crucial elements of most less developed countries. Using ols, adf and granger causality, aminu and anono 2012 also studied the effect of inflation on economic growth and development in nigeria. Pdf the impact of inflation on unemployment in nigeria. The model specified unemployment as a function of inflation, money supply % gdp, total. Causes, costs, and current status congressional research service summary since the end of world war ii, the united states has experienced almost continuous inflation the general rise in the price of goods and services.
Unemployment and inflation are two intricately linked economic concepts. Inflation is a household word in many market oriented economies. An analytical study of the impact of inflation on economic growth in nigeria 19702016. Three variables are used in this paper which are poverty level, unemployment rate and inflation rate. Therefore, inflation occurs as real gdp increases and unemployment decreases.
Inflation can only be reduced to the barest minimum by increasing output level gdp. Unemployment and inflation are issues that are central to both the. Inflation and unemployment are destructive rather than helpful to the economic development and growth in nigeria. Pdf the impact of inflation on unemployment in nigeria 2001. Nov 20, 2019 nigerias inflation has been higher than the average for african and subsaharan countries for years now, and even exceeded 16 percent in 2017 and a real, significant decrease is nowhere in. Unemployment rate in nigeria 2020 and its economic consequences. The findings showed that there is no longruns relationship between unemployment rate and economic growth in nigeria. It would be difficult to find a similar period in american history before that war. Impact of unemployment on economic growth in nigeria 1980 2010. The relationship between inflation and unemployment in nigeria.
The impact of unemployment and inflation on economic. Unemployment and inflation in nigeria economics project topics. Inflation has a significant negative relationship with unemployment rate in nigeria. Nigerias inflation has been higher than the average for african and subsaharan countries for years now, and even exceeded 16 percent in 2017 and a real, significant decrease is nowhere in. Causes and effects of graduate unemployment on the nigerian. Effects of unemployment and inflation on economic growth. The concept of unemployment aminu and anono 2012 conceptualized the term unemployment as the total number of people who are. It is on this basis that this study seeks to examine the impact of unemployment on economic growth in nigeria. These include the national directorate of employment nde, an agency of. Feb 12, 2020 this statistic shows the unemployment rate in nigeria from 1999 to 2019. In 2019, the unemployment rate in nigeria was at approximately 6. An analytical study of the impact of inflation on economic. Unemployment in nigeria is a major problem both economically and socially. The impact of inflation on unemployment in nigeria 200120.
The causes of persistent inflation in nigeria victor o. A case study of tanzania faraji kasidi1 kenani mwakanemela2 abstract like several other countries both industrialised and nonindustrialised, one of the central objectives of macroeconomic policies in tanzania is to promote economic growth and to keep inflation at a low level. Undoubtedly, parts of the macroeconomic goals which the government strives to achieve are the maintenance of stable domestic price level and fullemployment. It was the highest inflation rate since april of 2018, largely driven by the effects of the border closure and the new vat tax rate. Unemployment and inflation in nigeria 67 pages chapter 15. The impact of unemployment on economic growth includes. Impact of unemployment on economic growth of nigeria. Impact of inflation and unemployment on economic growth of. According to the empirical findings of this study, as in the philips curve, there is a negative relationship between inflation and unemployment rates in nigeria. This study is carried out to empirically examine the implication of unemployment and inflation on poverty level in nigeria from 19802014. Unemployment has significant effect on the economic growth in nigeria. Effect of inflation on the growth and development of the. The study set three major objectives which include determine the relationship between economic growth, inflation and unemployment, analyses.
This study investigated the relationship between unemployment and inflation in nigeria from 19802015. That is, the state of a country is moving through the direction on the phillips curve. Unemployment rate in nigeria 2019 nigerias unemployment rate stood at 23. Unemployment in nigeria has resulted in more and more people who do not have purchasing power.
Scope of the study the scope of this study is centred on the effect of unemployment on the nigerian economy, and it cover 1980 2010. Pdf effect of unemployment and inflation on wages in nigeria. Sep 14, 2016 unemployment and inflation are two economic concepts widely used to measure the wealth of a particular economy. Several ad hoc policies and programmes aimed at reducing the rate of unemployment in nigeria have been implemented over the past years with minimal effect. Inflation, unemployment, development, nigeria jel index classifications. According to this theory, inflation depends on the level of actual output gdp and natural rate of unemployment. Pdf on aug 7, 2018, yahaya yakubu and others published inflation and unemployment in nigeria. Effect of unemployment and inflation on wages in nigeria. Motivated by this controversial, this study examined the impact of inflation on economic growth and established the existence of inflation growth relationship.
What was noticeable as at then was a temporarily gap between searching for job by graduates and. The study set three major objectives which include determine the relationship between economic growth, inflation and unemployment. This thesis investigates the effects of unemployment and inflation on economic growth in nigeria between 19862012 through the application of ordinary least square ols technique in estimating the effects of unemployment and inflation on growth, augmented dickeyfuller test and phillip. Accordingly, the broad objective of this paper is to examine the effect of unemployment and inflation on wages in nigeria. Ordinary least square method and ttest was used to test the variables most likely to impact on economic growth in nigeria due to inflation. The continuous rise in the unemployment rate in nigeria is. Pdf understanding the relationship between unemployment. On the other hand, inflation is the increase in prices of goods and services available in the market. Stable prices, sustainable growth and low unemployment level has been the major macroeconomic goals being pursued by every developing country, nigeria inclusive. Other specific objectives are to determine unit root augmented dickey fuller. Description unemployment and inflation in nigeria 67 pages chapter 15.
Nairu is the unemployment rate at which the inflation rate is neither is neither raising nor falling. Pdf the impact of unemployment on economic growth in. A theoretical discussion about the philips curve maximova alisa1 abstract inflation and unemployment are integral part of a market economy, with socioeconomic consequences for the population of the countries in which these processes occur. Purpose to investigate and determine the effects of unemployment and inflation on economic performance in nigeria within the specified period as in the title and to establish the relationship between unemployment and inflation with real gross domestic product in nigeria. See below for the abstract, table of contents, list of figures, list of tables, list of appendices, list of abbreviations and chapter one. Since mid 1960s, inflation has become so serious and contentions a problem so serious and contentious a problem in nigeria. The study set three major objectives which include determine the relationship between economic growth, inflation and unemployment, analyses the effects of inflation in nigeria and assess. The economics of inflation unemployment and nigerian families. The annual inflation rate in nigeria rose for the seventh straight month to 12. Impact of unemployment on economic growth of nigeria mensch mind.
Structural transformation and jobless growth in nigeria. Unemployment and inflation in nigeria 20 4 what has come to be known as stagflation. Unemployment convergence among the 36 states in nigeria. The relationship between inflation and unemployment in. Impact of unemployment on economic growth in nigeria. Studies show that unemployment in nigeria was not a serious problem before and after the civil war 19671970, 10,11. Causes and effects of graduate unemployment on the. Unemployment is the total of countrys workforce who are employable but unemployed. The variables were subjected to unit root test and they were all stationary at first difference i1. Macroeconomic performance is judged by three broad measures unemployment rate, inflation rate, and the growth rate of output ugwuanyi, 2004. Unemployment refers to the share of the labor force that is without work but available for and seeking employment. Unemployment has no significant effect on economic growth in nigeria. Impact of inflation and unemployment on nigeria economic growth 19812017. Impact of unemployment on nigeria economic growth 19812017 pdf.
Timeseries data for the period 1990 2011 were used to examine the impact of inflation on economic growth. Unemployment and inflation are issues that are central to both the social and economic life of every country. In 2011, an analysis on the unemployment situation in nigeria shows that of the total number of unemployed individuals, 43. The relationship between inflation and unemployment. The persistent high level of unemployment and inflation in nigeria is.