The relationship between inflation and unemployment in nigeria. International journal of business and social science vol. Nigeria unemployment rate data, historical chart, forecasts and calendar of releases was last updated on march of 2020. In 2011, an analysis on the unemployment situation in nigeria shows that of the total number of unemployed individuals, 43. The problem however, contribution to the literature on the effect of unemployment and inflation on wages nexus are numerous but more effort is still needed to reexamine how unemployment and inflation affects wage rate. Inflation and unemployment are destructive rather than helpful to the economic development and growth in nigeria. Lagos reuters nigeria s unemployment rate stood at 23. The model of this study is made up of one dependent variable unemployment rate and five explanatory variables government expenditure. Final year research project topics, ideas and materials in pdf, doc download for free. 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. In other words, it is not having a source of earning a living. In 2019, the estimated youth unemployment rate in nigeria was at almost 20 percent.
The model specified unemployment as a function of inflation, money supply % gdp, total. The study uses the period 1977 to 2011 in analyzing the long run impact of inflation on unemployment in nigeria, based on the phillips curve hypothesis, instead of relying on the traditional ballpark figure made by nigerians. Covid19 and unemployment insurance benefits faq az des. Top 10 states with the highest unemployment in nigeria. Inflation is one of the most frequently used terms in economic discussions, yet the concept is variously misconstrued. Unemployment and underemployment, as measures of labor market conditions, are. Risk implications of unemployment and underemployment soa. Unemployment and underemployment on economic development in. Unemployment has no significant effect on economic growth in nigeria.
Unemployment rate can be defined by either the national definition, the ilo harmonized definition, or the oecd harmonized definition. Coronavirus and unemployment insurance benefits alabama. Real gross domestic product is also used as control variable. 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. For example, in 1998 gdp growth rate was relatively high amidst the. The nigerian government seem to have failed in its contractual obligation to.
Individuals in this model, substitute current consumption for future consumption by either. The national bureau of statistics nbs, said the nations gross domestic product gdp grew by 2. More worrisome, the incidence of longterm unemployment in slovenia is among the highest in the oecd. The causes of persistent inflation in nigeria victor o. Nigeria economic outlook top 10 themes for 2019 disclaimer this document has been prepared for general guidance on matters of interest only, and does not constitute professional advice. The dependent variables wereunemployment rate and inflationrate while federal government capital. Unemployment the state of not have a steady source of income from work that one does. Some analysts mohammed 2012 have argued that the high rates of. Africas most populous nation and largest economy has a youth unemployment problem. The trend between inflation and economic growth in nigeria the facts and figures obtained from the imf world economic outlook report 2011 revealed that the nigerias gdp tends to be low when the inflation rates are high apart from a few years of the 80s. Proceedings of the 2011 international conference on teaching. Unemployment has significant effect on the economic growth in nigeria. A link to national insecurity dr ejikeme jombo nwagwu department of political science, university of nigeria, nsukka abstract.
Equilibrium labor market theory suggests that unemployment benefit extensions affect unemployment by. Will workers qualify for unemployment benefits if covid19 causes an employer to shut down operations. 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. The high youth unemployment rate is also a consequence of the high labour market. During the 20th century one image above all dominated thinking about labour market policy the dole queue, a long line of men, hands in pockets, mostly with. Impact of foreign direct investment on unemployment rate. However, we are monitoring potential changes in federal and state laws and regulations, which may impact funding, eligibility and requirements for unemployment. The study set three major objectives which include determine the relationship between economic growth, inflation and unemployment. Does unemployment significantly impact on economic growth in nigeria. Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of. Unemployment, underemployment, economic growth, economic development, insurgency, poverty i. Impact of unemployment on economic growth of nigeria. There are various schools of thought on inflation, but there is a consensus among economists that inflation is a continuous rise in the prices.
Effect of fiscal policy on unemployment in the nigerian economy. The study set out to ascertain the influence of fiscal policy on unemployment and inflationreduction in nigeria. Talking of how lack of electricity has caused unemployment in nigeria, the matter is multifaceted. By how much does an extension of unemployment benefits affect macroeconomic outcomes such as unemployment. Also, the findings revealed that unemployment in nigeria increased from 21. The effect of inflation and interest rate on economic growth of nigeria includes abstract and chapter one, complete project material available the effect of inflation and interest rate on economic growth of nigeria abstract the gross domestic product growth is a long term rise in the capacity to supply increasingly diverse economic goods o its population. From 2011 to 20 there is an increase of 16% unemployment growth rate in nigeria. Simply put, inflation depicts an economic situation where there is a general rise. Young and unemployed in nigeria nigeria al jazeera. This statistic shows the unemployment rate in nigeria from 1999 to 2019. Proceedings of the 2011 international conference on teaching, learning and change c international association for teaching and learning iatel 4 unemployment accounted for less than 1 percent of the unemployed, in 1974, by 1984, the proportion rose to 4 percent for urban areas and 2. Impact of unemployment on economic growth in nigeria 1980 2010.
Does unemployment significantly impact on economic growth in. Impact of inflation and unemployment on nigeria economic growth 19812017. Anono abdulrahman zubairu lecturer department of management technology. Introduction imo is one of the 36 states of nigeria created in 1976 under the leadership of late general murtala muhammad.
May 2016 understanding the relationship between growth and employment in nigeria olu ajakaiye afeikhena t. Top 10 states with the highest unemployment in nigeria going through the archives of nbs national bureau of statistics for the last released 10 states with the highest rate of unemployment in nigeria. The latest available data puts the unemployment rate at 18. Feb 12, 2020 this statistic shows the unemployment rate in nigeria from 1999 to 2019. Longterm unemployment will decline as the economy recovers, but this will not solve the problem of older longterm unemployed. The ordinary least squares ols and augmented dickeyfuller methods. Unemployment means state of being unemployed according to unemployment represents the number of people in. Lack of regular electric power supply is the biggest cause of unemployment in nigeria. The relationship between inflation and unemployment in nigeria kayode bamidele adebowale submitted to the institute of graduate studies and research in partial fulfilment of the requirements of degree of master of science in economics eastern mediterranean university august 2015 gazimagusa, north cyprus. Determinants of the rate of unemployment in nigeria munich.
Ajisafes study was preoccupied with the monetary factors that could cause inflation, at the expense of fiscal factors. Impact of unemployment on nigeria economic growth 19812017 pdf. The total population in nigeria is divided into labour force currently active and. Dec 23, 2017 the national bureau of statistics nbs says the countrys unemployment rate rose from 14. Effect of inflation on the growth and development of the. This study investigated the relationship between unemployment and inflation in nigeria from 19802015. This is very common in nigeria and has been a problem for many years. Unemployment convergence among the 36 states in nigeria introduction terrorism, kidnapping, armed robbery and the spate of bombings in nigeria of recent has brought to greater attention the challenge of unemployment in the country. Nigeria unemployment growth appeared to gather pace somewhat in the final quarter of 2019, after quickening activity in both the agricultural and industrial sectors propped up a modest expansion in the third quarter. Effect of unemployment and inflation on wages in nigeria. Nigeria 3rhema university,department of economics, aba, abia state, nigeria abstract.
Oye, federal university of technology, school of pure and applied sciences spas, department of mathematics and computer science, p m b 2076, yola. The majority of nigeria population, the poor people in affluent society, is enmeshed in the net of poverty. Abstract the rising youth unemployment in nigeria is indeed disturbing as engagements of unemployed youths in armed robbery. Abstractthis study examines the impact of unemployment on the economic growth of nigeria from 1985 to 2010. The impact of unemployment on economic growth includes. The limited macroeconomic effects of unemployment benefit. An empirical analysis fatukasi bayo department of economics adekunle ajasin university, akungbaakoko abstract this study investigates the determinants of inflation in nigeria between 1981 and 2003. The tobin effect of inflation on economic growth of nigeria tobin, another neoclassical economist, 1965 developed mundells model further by following solow 1956 and swan 1956 in making money a store of value in the economy. On the compilation of labour force statistics for nigeria 1yemi kale and sani i. Causes, effects and solutions to youth unemployment problems. Impact of inflation and unemployment on economic growth of. Dec 16, 2015 impact of inflation and unemployment on nigeria economy.
Effect of inflation on the growth and development of the nigerian economy an empirical analysis aminu umaru lecturer department of economics school of management and information technology modibbo adama university of technology yola,adamawa state, nigeria. In nigeria, nearly a quarter of the population is out of work and. But fiscal factors cannot be ignored in a country like nigeria where deficit spending has become a more or less permanent feature of the budgetary process folorunso and abiola, 2000 12. The impact of inflation on unemployment in nigeria 200120. Unemployment and inflation in nigeria 67 pages chapter 15. It also said that nigerias labour population increased from 83. On the compilation of labour force statistics for nigeria. As nigerias youth population grows, so does its youth unemployment rate, reaching nearly 11. Doguwa computing unemployment rate using a 40 hours a week benchmark implies that any person who has worked for less than 40 hours during the reference week is considered unemployed. Unemployment convergence among the 36 states in nigeria being.
An examination of the causes of unemployment among. 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. Osinubi 2005 investigated the relationship among economic growth, unemployment and poverty in nigeria for the time period of 1970 to 2000 using 3sls estimation procedure. 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. The continuous rise in the unemployment rate in nigeria is. Pdf understanding the relationship between unemployment. Impact of inflation and unemployment on nigeria economy.
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