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Abstract:
The relation between economic growth and unemployment is being studied throughout a diverse set of contributions over the last years. Taking into account the current economic situation, this topic is regaining attention amongst economists essentially due to the importance of this relationship as a way to overcome the high unemployment rate that has been characterizing the Nigerian labour market.
This paper examined the relationship between unemployment rate and economic growth in Nigeria for the period 1990 to 2015. The study utilized co-integration test. Although the unit root tests of Phillips-perron showed that the variables were integrated of the same orders, the Johansen co-integration result showed that the variables were co-integrated. The regression estimate based on the short run and long run models showed that unemployment rate has a significant influence on economic growth in Nigeria over the study period. Based on these findings, this study recommended that there is still the need for government to take urgent steps against the rising unemployment rate, because unemployment is a major impediment to social progress and results in waste of trained manpower.
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