ABSTRACT

 The study examined the Impact of Poverty on unemployment in Nigeria. The secondary data was used from (1981 -2018) which were collected from various issues of the Central Bank of Nigeria (CBN) statistical bulletin and annual reports, National Brue of Statistics. Poverty as an independent variable was measured with Recurrent Expenditure on Education, Recurrent Expenditure on health and Money Supply whilst the dependent variable was Unemployment. Analysis was performed on data collected using Ordinary Least Squares Method Error Correction model (ECM) and other post estimations (Correlation Matrix; Breusch-Godfrey LM . and multi-collinearity Test) lo determine the existence of relationship between the variables. unemployment rate was found Jo positively and significantly impact on current level of unemployment rate in the country. Also, lag I of poverty rate exerts a positive and significant impact on current unemployment rate in the country as one-unit increase causes unemployment rate Jo increase by 0.1689 units. Conversely, a negative and significant relationship was found to exist between previous years money supply and unemployment level in the country as a one percent increase in money supply causes unemployment to decrease by JO. 75 percent. The error correction term conformed to theoretical expectation as it is negatively signed and found to be significant at 5 percent level of significance. The error correction term of -0.66 suggests that any fluctuation in the explanatory variables that causes disequilibrium in the short run will be corrected at the speed of 66 percent so that equilibrium will be achieved in the long run.