INFLATION AND UNEMPLOYMENT IN NIGERIA (1979-2018)

Abstract

This study examines the relationship between inflation and unemployment rate in Nigeria for the study period 1979 to 2018. Employing various techniques of econometric analysis, using macro-economic variables such as unemp, int, inf, lngdp and exc. Time series data were sourced from central bank statistical bulletin and world development index. The study employed ARDL. The results revealed that among the four independent variables which includes, unemp, int, lngdp were found to have significant impact on unemployment rate, while inflation is expected to have a positive and substantial effect on unemployment rate. The gross domestic product (GDP) which is a proxy of economic growth was also revealed by the estimation to have a positive and significant impact on unemployment rate, investment in Nigeria. Lastly, the study recommends that the diversification of the economy will enable the country to cushion the effect of risk which will increase the attractiveness of the economy to investors in the secondary and tertiary institution and openness to trade.