EDUCATION AND UNEMPLOYMENT NEXUS IN NIGERIA (1980 – 2023)

ABSTRACT This study investigates the intricate relationship between education and unemployment in Nigeria from 1980 to 2023, focusing on the disconnect between educational output and labor market demands. Utilizing a descriptive and quantitative research design, the study employs time-series data from the World Development Indicators (WDI) database, analyzing variables such as educational attainment, school enrollment, literacy rate, poverty rate, per capita income, and unemployment rate. Econometric techniques, including the Augmented Dickey-Fuller (ADF) unit root test, Johansen cointegration test, and Autoregressive Distributed Lag (ARDL) model, were applied to examine long-term relationships and causality. The findings reveal a significant skills mismatch, with many graduates lacking the practical skills required by employers, contributing to high unemployment rates, particularly among youths. The study identifies structural issues, such as outdated curricula and insufficient vocational training, as key contributors to this mismatch. Despite increased educational attainment, unemployment rates have risen, exacerbated by Nigeria’s oil-dependent economy and limited job creation in diverse sectors. The results suggest that while education positively influences employability when aligned with market needs, inefficiencies in educational investment and misalignment with labor market demands hinder its effectiveness in reducing unemployment. The study recommends comprehensive educational reforms, including curriculum updates, enhanced vocational and technical training, and stronger industry-academia partnerships to bridge the skills gap. Additionally, it advocates for economic diversification and targeted policy interventions to create more job opportunities, fostering sustainable economic growth and reducing unemployment in Nigeria.