Unemployment and Economic Growth: An Empirical Reflection of the Nigerian Experience

EGBERI KELVIN AGBARHA &OBOREH LUCKY EDAFETANO

Department of Business Administration and Management,

Delta State Polytechnic, Ozoro, Delta State, Nigeria

Email: kelvinegberi76@gmail.com, oborehlucky2014@gmail.com

ABSTRACT

The main objective of the study is to empirically investigate the relationship between unemployment and economic growth in Nigeria using data covering the period between 1985 and 2015. The Ordinary Least Squares and granger causality were used to analyze the results. The results indicate that unemployment has a negative and insignificant impact on the level of economic growth in Nigeria. The result shows further that Gross Fixed Capital Formation has a positive and insignificant impact on economic growth. Government expenditure on health has a significant and positive impact on economic growth in Nigeria. The result shows that government expenditure on education has an insignificant and negative impact in economic growth in Nigeria. The result recommends amongst others that government job creation efforts should focus more on the real sector of the economy.

Keywords: Unemployment, Economic Growth, Granger causality, Gross Fixed Capital Formation