Employment Level and Economic Growth of Nigeria

Abstract:

This study is on the employment level and the economic growth of Nigeria. The objectives of this study were to describe the trend of employment level in Nigeria; determine factors influencing total employment level; determine the relationship between Total employment level and economic growth; Proffer recommendations based on research findings on the best way to improve employment generation potential in Nigeria.

Secondary data source from Central Bank of Nigeria (CBN) and National Bureau of Statistics (NBS) were used for this study. The study adopted regression analysis and causality tests for the study to achieve the stated objectives. However, the augmented dickey fuller (ADF) test was conducted to determine the stationarity of macroeconomic variables. (Gross domestic product (GDP), Inflation, Foreign direct investment (FDI), Interest rate). Result shows the RSquare 0.72 means that 72 percent of the variation in the dependent variable is explained by (Gross Domestic Product, Foreign Direct Investment, Interest rate and Inflation).The results further shows that foreign direct investment, inflation, interest rate have positive relationship with Employment level (Y).The result of granger causality also shows that GDP granger cause Inflation at 1% level of    significant, FDI Granger cause GDP with a 5% level significant, Interest rate Granger cause GDP at 10% level of significant, FDI Granger cause Interest rate with a 10% level of significant.  The result concluded that Gross domestic product (GDP), interest rate were factors that contributed to those Employment level in Nigeria. The research recommended that government should evolve appropriate economic policy so as to reduce the policies associated with interest rate and low output production (GDP).