Unemployment and Nigerian Economic Growth (1985-2009)

Abstract

It is an established economic reality that the size of the workforce directly impacts on a country’s GDP (growth). Not
only does the work force produce manufactured goods or services or agricultural produce in direct proportion, but also brings in
its wake increasing purchasing power, which in turn, fuels economic growth. This paper looks at the relationship between
unemployment and growth in Nigeria (1985-2009). One major findings of the study is that the economy grew by 55.5 percent
between 1991 and 2006; and the population increased by 36.4 percent. All things been equal, this should have resulted to a
decrease in the rate of unemployment but rather, unemployment increased by 74.8 percent. The study also found out that the
average contribution of the oil sector to the GDP between 1991 and 2006 is 30.5 percent while agriculture that is the main
source of gainful employment in the country contributed 36.7 percent just a difference of 6.1 percent from that of oil that employs
less than 10 percent of the labour force. The study recommends that the agricultural sector as a medium of reducing
unemployment in Nigeria should be harnessed and advises that Government and all relevant stakeholders continue in their
quest towards reducing unemployment, as well as give their support in ensuring that the agricultural sector is not downtrodden
but embraced in this task.