Effect Of Unemployment On Economic Growth In Nigeria:- Aghedo Uwadebame

ABSTRACT Xiii The study examined the Effect ofunemployment on economic growth in Nigeria. The secondary data was usedfrom (1980 -2018) which were collectedfrom various issues ofthe Central Bank of Nigeria (CBN) statistical bulletin and annual reports. Unemployment as an independent variable was measured with Real Interest Rate, Expenditure on Education, while the dependent variable was Gross Domestic Product. Analysis was performed on data collected using Ordinary Least Squares Method and otherpost estimations (Correlation Matrix; Breusch-Godfrey LMand White Heteroscedasticity Test) to determine the existence ofrelationship between the variables. The results ofthe study showed that Expenditure on Education and Unemployment are positive with statistical significant result on Expenditure on Education while unemployment is statistically insignificant. Real Interest Rate is negative but statistically significant. The study concluded that, insignificant ofthe variables can be corrected ifgovernment can yield to the recommendations, by formulatingpolicies that will help in proper check ofannual unemployment rate, and its outcome on the effort to reduce it, Policiesshould also beformulated to reduce andstabilize the real interest rate, in order to encourage investor to borrowfunds to create establishment which will help in eradicatingpoverty and unemployment in Nigeria.