IMPACT OF POPULATION GROWTH ON UNEMPLOYMENT IN NIGERIA

ABSTRACT

This study explores the intricate relationship between population growth and unemployment in Nigeria from 1981 to 2020. Using a comprehensive dataset encompassing Dependency Rate (LNDEPR), Labor Participation Ratio (LNLPR), Population Growth Rate (LNPGR), Real GDP (LNRGDP), and Secondary School Enrollment Rate (LNSSER), our research sheds light on the multifaceted dynamics influencing unemployment in the country. Employing the Error Correction Model (ECM), we analyzed the dataset to uncover the connections between the variables. ECM allowed us to investigate both short-term and long-term relationships, providing a robust framework for our analysis. Our findings emphasize the potential of policies promoting increased labor force participation (LNLPR) in mitigating unemployment challenges in the face of population growth. Furthermore, investments in education and skill development (LNSSER) are highlighted as crucial for reducing unemployment. While Dependency Rate (LNDEPR) and Population Growth Rate (LNPGR) display positive relationships with unemployment, statistical significance remains elusive. Real GDP (LNRGDP) hints at potential significance in reducing unemployment but achieves only marginal statistical significance. In conclusion, this study calls for tailored policy interventions encompassing education, labor force participation, economic growth, and demographic management. While some relationships lack statistical significance, they merit ongoing exploration and advocate for data-driven policymaking. Addressing the challenges posed by population growth on unemployment necessitates a holistic and adaptable approach, engaging diverse stakeholders in the pursuit of sustainable economic development and reduced unemployment rates in Nigeria.