INFLATION, UNEMPLOYMENT ANDECONOMICGROWTH IN NIGERIA(1980-2020)

Abstract

The major macroeconomic goals pursued by every developing country, including Nigeria, have been Low inflation rate, sustainable growth, and a low unemployment rate. As a result, the purpose of this research is to examine the relationship between inflation, economic growth, and unemployment in Nigeria using time series data from1980 to2020. The ordinary least squares (OLS) estimation technique was used to investigate this relationship, as well as the multicollinearity test to look for any linear relationship between the explanatory variables. The study discovered that, while inflation had a negative relationship with unemployment, it had no significant impact on the level of unemployment. Real GDP, on the other hand, was found to have a positive relationship with unemployment and to be significant in explaining unemployment in Nigeria. According to the Multicollinearity test, there is no linear relationship between inflation and unemployment, nor between economic growth and inflation. The study concludes that, despite increased economic growth (in terms of real GDP) over the years, unemployment in Nigeria has not decreased. This can be attributed to Nigeria's over-reliance on revenue generated by the oil sector, which has resulted in a neglect of the economy's real sectors. As a result, the study recommends that the real sector of the economy be developed in order to reduce unemployment as the economy's real gross domestic product rises