Impact Of Unemployment On The Economy Of Nigeria:- Achilefu Blessing N.

ABSTRACT

The study was designed to investigate the impact on unemployment on the economy ofNigeria (1981-2018). The objective ofthe study was to determine the impact ofunemployment on Nigeria economy and to ascertain the long run relationship between unemployment and economic growth in Nigeria. Ordinary Least Square method was employed for the data analysis. Result show that unemployment has a negative and significant impact on economic growth in Nigeria, government expenditure has a positive and insignificant impact on Nigeria economic growth and money supply has a positive and significant impact on Nigeria economic growth. In conclusion, The dependent and independent variables used were macroeconomic indicators which are, unemployment, money supply and government expenditure. The observation from this study showed that government expenditure is insignificant, as a result making unemployment to have a negative impact on economic growth in Nigeria. However, money supply also show a positive influence in economic growth. Based on the findings the following suggestions and policy recommendations were made: government should embark on a program to train entrepreneurs instead ofallowing unemployed graduates to searchforjobs that are not there. For example, the National Youths Service Corp program (NYSC) could become a one-year entrepreneurial trainingprogramfor all graduates who willpass out to createjobs. Due to limited resources and competing needs, it is difficult to get requiredfundsfrom Government to fix infrastructures that need urgent repairs. However, ifgovernment spends money to repair roads, purchase hospital equipment, andfixpublic schools, its effect on the economy will be visible.