IMPACT OF FEMALE LABOUR PARTICIPATION, AND UNEMPLOYMENT ON ECONOMIC GROWTH IN NIGERIA

This study empirically examines the impact of female labor force participation and unemployment on economic growth in Nigeria over the period 1986–2024. The study is motivated by persistent gender disparities in labor market participation and high unemployment rates, particularly among women, which continue to constrain Nigeria’s growth potential. Anchored on the Keynesian Employment Theory, the study employs annual time-series data sourced from the Central Bank of Nigeria (CBN), National Bureau of Statistics (NBS), World Bank World Development Indicators (WDI), and the International Labour Organization (ILO). Economic growth is proxied by real GDP growth rate, while female labor force participation rate and unemployment rate serve as the key explanatory variables, with inflation included as a control variable. The Augmented Dickey-Fuller and Phillips-Perron tests are used to examine the stationarity properties of the variables, while the Autoregressive Distributed Lag (ARDL) bounds testing approach is adopted to investigate both short-run and long-run relationships among the variables. The results reveal the existence of a long-run equilibrium relationship between female labor force participation, unemployment, inflation, and economic growth in Nigeria. Empirical findings indicate that female labor force participation has a positive and statistically significant effect on economic growth in both the short and long run, while unemployment exerts a negative and significant impact on growth. Inflation is found to have a negative but weak effect on economic growth. The error correction mechanism confirms a moderate speed of adjustment toward long-run equilibrium following short-run shocks. Based on these findings, the study concludes that enhancing female participation in productive employment and reducing unemployment are critical to achieving sustainable and inclusive economic growth in Nigeria. The study therefore recommends the implementation of gender-sensitive labor market policies, increased investment in female education and skills development, employment-generating fiscal interventions, and macroeconomic stabilization measures to harness the full growth potential of Nigeria’s labor force.