Unemployment refers to the share of the labor force that is without work but available for and seeking employment. Inflation and reflect a dozen diverse views on one of the nations central economic problems. Final year research project topics, ideas and materials in pdf, doc download for free. A comparative analysis of the population and unemployment structure of three purposively selected and heavily populated countries in three different continentsnigeria, china and usa were undertaken. Stress and health problems especially, suffered from those who are not employed, remained one of the economic consequences of unemployment, and when there is unemployment, the people suffer. According to this theory, inflation depends on the level of actual output gdp and natural rate of unemployment. This effect decisions on expenditure, savings, investment and misallocation of resources. These are the major external factor contributing to nigerias inflation. 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. Economic growth and the unemployment rate congressional research service summary a persistently high unemployment rate is of concern to congress for a variety of reasons, including its negative consequences for the economic wellbeing of individuals and its impact on the federal budget.
The result shows that a 1% increase in inflation rate will reduce unemployment rate by 0. The factors responsible for this is due to population increase, increase in workers salaries and. Ineffective leadership and corruption, over reliance on oil, inflation, unemployment, government policy, monetary policies, inadequate. Impact of inflation and unemployment on nigeria economic growth 19812017. Inflation has a significant negative relationship with unemployment rate in nigeria. A deficit budget may be financed by the additional money creation. But the situation of monetary expansion or budget deficit may not cause price level to rise. Causes, effects, solution and rate of unemployment in nigeria the causes of unemployment are practically what happen in all sectors. Pdf causes, effects and solutions to youth unemployment. The relationship between inflation and unemployment in nigeria. Unemployment and inflation are two intricately linked economic concepts. Moreover, money exhausted on the products causes inflation. Introduction background to the study one of the greatest challenges facing the nigerian economy is unemployment which has maintained a rising. Using agege local government of lagos state as a case study.
This page provides nigeria inflation rate actual values, historical data, forecast. The economics of inflation unemployment and nigerian families. Economic theory explains this relationship in terms of a full employment rate of unemployment, also called the natural rate of unemployment or the nonaccelerating inflation rate of unemployment nairu. The impact of rapid inflation growth has led the federal government of nigeria to adopt several sexual measures of inflation control. More so, low investor confidence due to inflation also discourages them from taking loans from banks. Unemployment in nigeria is a major problem both economically and socially. This research will discuss in details the causes of poverty and unemployment in nigeria. What was noticeable as at then was a temporarily gap between searching for job by graduates and. Purpose to investigate and determine the effects of unemployment and inflation on economic performance in nigeria within the specified period as in the title. Using ols, adf and granger causality, aminu and anono 2012 also studied the effect of inflation on economic growth and development in nigeria. 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. This huge figure implies that the rate of unemployment is really high.
Macroeconomic determinants of unemployment wiley online library. Paramount among these measures are monetary and credit policies formulated restore balance of payment to a health. The study set three major objectives which include determine the relationship between economic growth, inflation and unemployment. The issue of poverty and unemployment has continued to be a core subject matter in nigeria and other african countries alike. The relationship between inflation and unemployment in. The rate at which unemployed graduates roam the street after.
Low consumer confidence as a result of inflation, leads to less spending. Impact of inflation and unemployment on economic growth of. Demandpull conditions occur when demand from consumers pulls prices up. Inflation and unemployment are destructive rather than helpful to the economic development and growth in nigeria. Unemployment rate in nigeria 2020 and its economic consequences. Studies show that unemployment in nigeria was not a serious problem before and after the civil war 19671970, 10,11. For a nation thats not in the region where it snows to be 190 million in population, there just cant be enough jobs, even if. 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. Thereafter, domestic or internal causes like increase government expenditures, raising domestic credit creation and supply, bottlenecks such as shortage of raw materials and. As per the report of the world bank, 2005 the gdp at purchasing power.
Both are responsible for a general rise in prices in an economy. Effect of inflation on the growth and development of the. Cost push inflation arises from anything that causes the conditions of supply to decrease. For example, in 1998 gdp growth rate was relatively high amidst the. This paper discusses the challenges of nigerias economy problems, causes and the way forward. The impact of inflation on unemploym ent in nigeria 200120. Over the years, economists have tried to investigate the effect of inflation and unemployment on poverty level plus identifying the role of government in controlling unemployment, inflation and poverty. For a nation thats not in the region where it snows to be 190 million in population, there just cant be enough jobs, even if you create 10,000 of it daily. Inflation is often defined in terms of its supposed causes. Causes and effects of graduate unemployment on the nigerian.
Or inflation is attributed to budget deficit financing. Inflation has been plaguing the nigeria economy for decades. The impact of unemployment and inflation on economic. This is in line with the phillips hypothesis that an inverse relationship exists between inflation and unemployment. Other specific objectives are to determine unit root augmented dickey fuller.
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 causes of persistent inflation in nigeria central bank of 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. If the economy has overheated, central banksif they are committed to ensuring price stabilitycan implement contractionary policies that rein in. Our emphasis here is on diagnosis of the causes of inflation and a description of the effects of inflation, not on specific policy recommendations to end inflation. What is the guarantee that large army of unemployed.
Top ten major causes of unemployment in nigeria and solutions nigeria is country blessed with a lot of resources, both natural and human. This is commonly described as too much money chasing too. The causes of persistent inflation in nigeria victor o. An analytical study of the impact of inflation on economic. Demandpull inflation is caused by an increase in the conditions of demand. 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. Find out about the main causes of inflation in nigeria in this article. Secondary data obtained from national bureau of statistics, central bank.
Causes, effects and solutions to youth unemployment. Therefore, the research work intends to make a critical assessment of the determinants of inflation in nigeria is the necessary condition upon which a lasting solution to inflation can be found in nigeria. It is sad, however, that her resources are not put to efficient use. Causes of inflation in ghana pdf explain that this negatively affects banks profits and can result in them closing some of their branches or going out of business completely. From this of view of the public inflation causes uncertainty about future prices. 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.
Accordingly, the broad objective of this paper is to examine the effect of unemployment and inflation on wages in nigeria. Poverty, unemployment and inflation are dreaded global. It is generally stated as a percentage and calculated by dividing the. The relationship between inflation and unemployment in most years, inflation tends to rise when unemployment falls, and vice versa. Timeseries data for the period 1990 2011 were used to examine the impact of inflation on economic growth. 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. Unemployment in nigeria has resulted in more and more people who do not have purchasing power.
Here, you can also find the inflation definition and the information about the current inflation rate in nigeria. The granger causality shows that inflation does not cause economic growth in nigeria, while unemployment and foreign exchange rates cause. Nigeria has been going through a lot of economic problems in the recent years. Inflation exists when money supply exceeds available goods and services. Effect of unemployment and inflation on wages in nigeria.
Jan 16, 2020 there are two main causes of inflation. Some of these factors include a rise in the cost of production, an increase in government taxation and a decrease in quantity of foods produced. 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. Determinants of the rate of unemployment in nigeria.
Inflation is said o occur when the genral level of prices rises rapidly and persistently over a givebn period of time. One of the major factors responsible for the high level of unemployment in nigeria is the rapid growth in population. Causes of inflation demandpull inflation arises when aggregate demand in an economy outpaces aggregate supply it involves inflation rising as real gross domestic product rises and unemployment falls. According to this theory, inflation depends on the level of actual output gdp and. Motivated by this controversial, this study examined the impact of inflation on economic growth and established the existence of inflation growth relationship. We will consider five causes of unemployment in nigeria. Inflation and unemployment tradeoff contemporary economics. Nigeria inflation rate 19962020 data 20212022 forecast. Anono abdulrahman zubairu lecturer department of management technology. Unemployment represents the number of people in the work force who want to work but do not have a job.
Consequently, a basic thesis of this proposal is that stagflation has caused and will continue to cause considerable hardship for many nigerian. The right set of antiinflation policies, those aimed at reducing inflation, depends on the causes of inflation. Nairu is the unemployment rate at which the inflation rate is neither is neither raising nor falling. Causes and effects of graduate unemployment on the. Impact of unemployment on economic growth in nigeria. A comparative analysis of the population and unemployment structure of three purposively selected and heavily populated countries in three different continents nigeria, china and usa were undertaken. Causes, effects and solutions to youth unemployment problems. Causes, effects and solution of inflation in nigeria myschool. When considering the causes of unemployment we look at the economic condition and demography of the country. Before sap, inflation in nigeria was by primary rising the world export price and falling output. These could either be an increase in the ability to buy goods or an increase in the willingness to do so.