IMPACT OF POPULATION GROWTH ON UNEMPLOYMENT IN NIGERIA

This study examined the impact of population growth rate on unemployment in Nigeria using annual data obtained from the World Bank Development Indicators from the period 1992–2022. Unemployment rate was used as a proxy for unemployment, while population growth rate, labor force participation rate and GDP growth rate were used as key explanatory variables. Unemployment remains one of the most critical socio-economic challenges confronting Nigeria due to its far-reaching effects on both the economy and society. To verify the stationarity of the variables, a unit root test was performed using the Augmented Dickey-Fuller (ADF) and Kwiatkowski-Phillips-Schmidt-Shin (KPSS). The unit root test confirmed the stationarity of the variable but of different integration order. The results of the bounds co-integration test revealed that there is a long-run relationship between the variables. The model was estimated using auto-regressive distributed lag (ARDL) to determine the relationship between each independent variable and the dependent variable. The results of the ARDL test showed that labor force participation rate and GDP growth rate had a significant effect on unemployment in the short-run. The Granger Causality test result showed that there is unidirectional relationship between Unemployment rate and Population Growth rate, Population Growth rate and Labour Force Participation rate, Population Growth rate and GDP growth rate. Based on these findings, the study recommended that policies should focus on improving labor market efficiency, enhancing workforce skill development, and fostering economic growth that translates into job creation. Keywords: Unemployment, Population, Labour force participation rate, Gross Domestic Product Growth Rate, Economic growth. Word Count: 238