IMPACT OF POPULATION GROWTH ON THE UNEMPLOYMENT LEVEL IN NIGERIA

ABSTRACT

The aim of this study is to evaluate the impact of population growth on the unemployment level in Nigeria with a focus on determining the longrun relationship and direction of causality between population and unemployment level in Nigeria. The model employed in this study is the Autoregressive Distributed lag model (ARDL model) and Granger causality test was used to ascertain the direction of causality. The time frame for this study spanned between the year 1991-2019. This study found that population is a significant variable in determining unemployment level in Nigeria. Also, the variables of exchange rate, degree of openness and interest rate was found to be insignificant factors in determining external debt in Nigeria. Furthermore, a unidirectional relationship was found between population and unemployment. Meaning that population can cause unemployment to increase but unemployment can’t cause increase in population. There was also causality flowing from government expenditure and unemployment, population and government expenditure, consumer price index and government expenditure, foreign direct investment and interest rate However, it was suggested that The government should pursue measures that will help to reduce population growth rate in order to control the supply of labour and consequently led to the reduction in the rate of unemployment. Finally, the Nigerian economy should be diversified towards other productive sectors in the country. This implies moving out of the dominant mono-product oil economy to reform the agricultural sector