The study was conducted to evaluate the impact of inflation on economic growth in the context of an emerging market using empirical evidence from nigeria. Africas most populous nation and largest economy has a youth unemployment problem. Unemployment rates also surged in other south south oilproducing states, despite the rise in. Effect of inflation on the growth and development of the. Unemployment in nigeria has resulted in more and more people who do not have purchasing power. In 2019, the unemployment rate in nigeria was at approximately 6. Young and unemployed in nigeria nigeria al jazeera.
For example, in 1998 gdp growth rate was relatively high amidst the. The impact of inflation on unemployment in nigeria 200120. Pdf the impact of inflation on unemployment in nigeria 200120. Inflation and unemployment are destructive rather than helpful to the economic development and growth in nigeria. This statistic shows the unemployment rate in nigeria from 1999 to 2019. The causes of persistent inflation in nigeria victor o. Vermeulen 2017, hodge 2002 and burger and marinkov 2006 for. This page provides nigeria inflation rate actual values, historical data, forecast, chart, statistics, economic calendar and news. In 2019, the estimated youth unemployment rate in nigeria was at almost 20 percent.
Inflation and unemployment tradeoff contemporary economics. Pdf the impact of inflation on unemployment in nigeria. Asekunowo1 this study sought to identify the traditional and institutional inflation variables responsible for inflation phenomenon and the magnitude of the contribution of the identified variables to the rise in general price level. You will also find the economic consequences of high unemployment rate in the country. Aug 18, 2005 inflation versus unemployment in south africa. Inflation rate from 2004 to 2024 compared to the previous year. As mentioned above, the relationship between unemployment and inflation was initially introduced by a. The impact of rapid inflation growth has led the federal government of nigeria to adopt several sexual measures of inflation control. Nigeria inflation rate 19962020 data 20212022 forecast. The trend between inflation and economic growth in nigeria the facts and figures obtained from the imf world economic outlook report 2011 revealed that the nigerias gdp tends to be low when the inflation rates are high apart from a few years of the 80s. The relationship between inflation and unemployment in nigeria. Pdf the impact of inflation on unemployment in nigeria 2001. Download the complete economics project topic and material chapter 15 titled unemployment, inflation and economic growth in nigeria 1980 2016here on projects.
Unemployment and inflation in nigeria economics project topics. The model specified unemployment as a function of inflation, money supply % gdp, total. The unemployment rate in nigeria in this post, you will see the current rate of unemployment in nigeria. Hence, faster inflation is associated with lower unemployment. Unemployment and inflation in nigeria modish project. The unemployment rate in nigeria is quite alarming, and the rate is increasing by the day. Inflation, unemployment, development, nigeria jel index classifications. In estimating the okuns coefficient, and checking the validity of okuns law in. Feb 12, 2020 this statistic shows the unemployment rate in nigeria from 1999 to 2019. In other words, a lower unemployment rate could be had by tolerating a hi gher rate of inflation.
Though nigeria inflation rate fluctuated substantially in recent years, it tended to decrease through 1969 2018 period ending at 12. Based on the above tests carried out, the study found out that. Nigeria business confidence 20082020 data 20212022. Unemployment and inflation are issues that are central to both the social and economic life of every country. See below for the abstract, table of contents, list of figures, list of tables, list of appendices, list of abbreviations and chapter one. The study set out to ascertain the influence of fiscal policy on unemployment and inflationreduction in nigeria. The statistical tests used were simple percentage and the chi square statistics. Phillips curve demonstrates the relationship between the rate of inflation with the rate of unemployment in an inverse manner. The nigerian economy has remained largely underdeveloped despite the increases in growth rate declare every year. Unemployment in nigeria is a major problem both economically and socially.
Using time series data spanning forty one years 19702011 which was obtained from the central bank of nigeria cbn statistical bulletin volume 22, and central bank of nigeria. Pdf understanding the relationship between unemployment. Undoubtedly, parts of the macroeconomic goals which the government strives to achieve are the maintenance of stable domestic price level and fullemployment. For some time, it was believed that there was a tradeoff between the two that policymakers could exploit. Click the download now button to get the complete project work instantly. Impact of inflation and unemployment on nigeria economic growth 19812017. Effects of unemployment and inflation on economic growth.
The relation between unemployment and inflation has long held the attention of economists. Lagos reuters nigeria s unemployment rate stood at 23. Motivated by this controversial, this study examined the impact of inflation on economic growth and established the existence of inflation growth relationship. The number of unemployed persons in nigeria increased to 15998 thousand in the third quarter of 2017 from 585.
Macroeconomic performance is judged by three broad measures unemployment rate, inflation rate, and the growth rate of output ugwuanyi. Phillips curve, inflation, employment, symmetric cointegration. Inflation and unemployment impact economic the economy through reduction in purchasing power, rising unemployment, rising poverty, lower aggregate demand, poor foreign and domestic investment, poor economic growth among others. Scope of the study the scope of this study is centred on the effect of unemployment on the nigerian economy, and it cover 1980 2010. On the determinants of unemployment rate in nigeria preprints. Impact of foreign direct investment on unemployment rate. Structural transformation and jobless growth in nigeria. Effect of inflation on the growth and development of the nigerian economy an empirical analysis aminu umaru lecturer department of economics school of management and information technology modibbo adama university of technology yola,adamawa state, nigeria. The unemployment rate based on nbss revised methodology were calculated to be 23. Inflation and unemployment trade off in nigeria phillip curve. Timeseries data for the period 1990 2011 were used to examine the impact of inflation on economic growth. Unemployment has significant effect on the economic growth in nigeria.
Paramount among these measures are monetary and credit policies formulated restore balance of payment to a health. This idea of a tradeo between the ination rate and unemployment rate was born out of ndings by a. The trend between inflation and economic growth in nigeria the facts and figures obtained from the imf world economic outlook report 2011 revealed that the nigeria s gdp tends to be low when the inflation rates are high apart from a few years of the 80s. Causes, effects, solution and rate of unemployment in nigeria the causes of unemployment are practically what happen in all sectors. Stable prices, sustainable growth and low unemployment level has been the major macroeconomic goals being pursued by every developing country, nigeria inclusive. Unemployment rate in nigeria 2020 and its economic consequences. The impact of unemployment on economic growth includes. Unemployment rate in nigeria has been on the incline since the economic crisis in 2014. Unemployment has no significant effect on economic growth in nigeria. Kingdom and canada, the unemployment rate in 1977 was as high as or higher than in 1973, the last year of. Nov 20, 2019 nigerias inflation has been higher than the average for african and subsaharan countries for years now, and even exceeded 16 percent in 2017 and a real, significant decrease is nowhere in.
Macroeconomic performance is judged by three broad measures unemployment rate, inflation rate, and the growth rate of output ugwuanyi, 2004. Effects of unemployment and inflation on economic growth in. The impact of inflation on unemploym ent in nigeria 200120. According to the empirical findings of this study, as in the philips curve, there is a negative relationship between inflation and unemployment rates in nigeria. The variables were subjected to unit root test and they were all stationary at first difference i1. Impact of unemployment on economic growth in nigeria 1980 2010. Using ols, adf and granger causality, aminu and anono 2012 also studied the effect of inflation on economic growth and development in nigeria. This thesis investigates the effects of unemployment and inflation on economic growth in nigeria between 19862012 through the application of ordinary least square ols technique in estimating the effects of unemployment and inflation on growth, augmented dickeyfuller test and phillip. Impact of unemployment on economic growth of nigeria mensch mind. The project study is wellresearched for academic purposes and are usually provided in complete chapters with adequate references.
In nigeria, umaru and zubairu 2012 indicate that there. This is revealed in a report released today by the national bureau of statistics nbs according to the nbs report, akwa ibom reported the highest unemployment rate of 37. As a result, this study sets out to investigate the relationship between inflation. Impact of inflation and unemployment on economic growth of. The latest available data puts the unemployment rate at 18. To achieve this annual data on unemployment rate, inflation rate, interest rate, exchange rate and population growth from 1981 to 2016 was. When considering the causes of unemployment we look at the economic condition and demography of the country.
To download the statistic, please switch to the chart view. So this study aims at finding the relationships between unemployment rate and variables like gdp growth rate, inflation rate cpi based, openness of trade, and private domestic investment in nigeria, but also to find what gaps there may be in the literature. Oye, federal university of technology, school of pure and applied sciences spas, department of mathematics and computer science, p m b 2076, yola. Unemployment refers to the share of the labor force that is without work but available for and seeking employment. Inflation and unemployment trade off in nigeria phillip curve abstract this study investigated the relationship between unemployment and inflation in nigeria. Unemployment and inflation in nigeria 67 pages chapter 15. Unemployment and inflation in nigeria hiwriters free. The impact of unemployment and inflation on economic. Unlimited viewing of the articlechapter pdf and any associated supplements and figures. The study set three major objectives which include determine the relationship between economic growth, inflation and unemployment. The existing literature refers to unemployment and inflation as constituting a vicious circle that explains the endemic nature of poverty in developing countries. Inflation as measured by the consumer price index reflects the annual percentage change in the cost to the average consumer of acquiring a basket of goods and services that may be fixed or changed at.
Diagnosing the problem of inflation and unemployment. The study that found contracting results for nigeria was by bankole and fatai 20. An empirical analysis fatukasi bayo department of economics adekunle ajasin university, akungbaakoko abstract this study investigates the determinants of inflation in nigeria between 1981 and 2003. Download the complete economics project topic and material chapter 15 titled effects of unemployment and inflation on economic growth in nigeria, 19862012.
View the article pdf and any associated supplements and figures for a period of 48 hours. The model specified unemployment as a function of inflation. Since faster growth often means more intensive utilization of an economys resources, faster growth will be expected to come with falling unemployment. This study is carried out to empirically examine the implication of unemployment and inflation on poverty level in nigeria from 19802014.
This page provides nigeria business confidence actual values, historical data. I then examine some evidence on the performance of these models in explain ing inflation. Results show that population growth is not the sole factor responsible for increase in unemployment in nigeria as unemployment statistics is stable for u. Nigeria s inflation has been higher than the average for african and subsaharan countries for years now, and even exceeded 16 percent in 2017 and a real, significant decrease is nowhere in. The study set three major objectives which include determine the relationship between economic growth, inflation and unemployment, analyses the effects of inflation in nigeria and assess. From 2011 to 20 there is an increase of 16% unemployment growth rate in nigeria. Three variables are used in this paper which are poverty level, unemployment rate and inflation rate. The paper noted increased unemployment in the reform years as well as increased rate of joblessness and vulnerability during the global crisis period, demonstrating a clear mismatch between the goals of macroeconomic policies and the. The dependent variables wereunemployment rate and inflationrate while federal government capital expenditure, petroleum profit tax. Undoubtedly, parts of the macroeconomic goals which the government strives to achieve are the maintenance of stable domestic price level and full employment. The relationship between inflation and unemployment in.
Impact of unemployment on nigeria economic growth 19812017 pdf. This study investigated the relationship between unemployment and inflation in nigeria from 19802015. According to the source, the data are estimates from the international labour organization, an agency of. Pdf the assessment of the effects of fiscal policy on. Regarding the unemployment, nigeria s unemployment rate in 2011 is estimated 35% of the population. Underemployment, however, has been gradually declining over the past four quarters, with the rate in q3 was reported as 20. Inflation with keynesian unemployment inflation in the model of this paper is an extension of the keynesian analysis of real activity. Impact of unemployment on economic growth of nigeria.
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