ABSTRACT

This work investigates the Impact ofrising unemployment on the Nigerian Economy. Secondary data was collectedfrom CBN Statistical Bulletinfrom 1981 to 2018 were used for the study. Dickey-Fuller test (DF) ofthe Ordinary Least Square (OLS) estimation technique was adopted to testfor unit root where the dependent variable was regressed on the explanatory variable of the modelfor stationary and Co-integration test was used to checkfor long run stability ofthe model. Ex-post facto research design was used in analytical examination of dependent and independent variables. The variables used in this study was real domestic product, unemployment and inflation. The objectives ofthe study are to: (1) To examine the impact of unemployment on Real Gross Domestic (RGDP) in Nigeria. (2) To ascertain the long relationship between unemployment and Real Gross Domestic (RGDP) in Nigeria. The result of Augmented Dickey Fuller unit root test table showed that UNEMP, MS/GDP, MC and CPS are not stationary at levels. However, all variables are stationary atfirst difference using ADF test. Considering the time series using Augmented-Dickey Fuller at Trend & Intercept, all their calculated statistics are greater than the critical values at 5% level of significance in first difference. The results show that the time series are integrated ofthe same order; 1(1), with the application of both ADF test. From the unrestricted cointegration rank test (Trace), the first three trace statistics value are greater than the critical value at 5% is statistically significant. The test result showed the existence ofa long-run equilibrium relationship among the variables. Following the findings and conclusions, this study recommended that there should be pursuit of policies that would improve the depth and breadth of the Nigerian financial sector so as to engender a rapid development of the sector that would result in the economic growth and development ofthe economy while reducing unemployment. This will help to boost investment and also lead to increase in countries GDP.