The determinants of urban unemployment crisis in Nigeria: An econometric analysis

Type Journal Article - Journal of emerging trends in economics and management sciences
Title The determinants of urban unemployment crisis in Nigeria: An econometric analysis
Volume 2
Issue 3
Publication (Day/Month/Year) 2011
Page numbers 184-192
URL Determinants of Urban Unemployment Crisis in​Nigeria.pdf
In igeria, since the early eighties, urban unemployment has assumed an alarming dimension and a crisis
proportion with millions of able-bodied persons who are willing to accept jobs at the prevailing wage rates are
unable to find placements. Thus urban unemployment has been regarded as one of the most challenging
economic problems facing the igerian policy makers. This study however examined the determinants of the
urban unemployment in igeria. The choice is to enable us identify the major factor responsible for the crisis.
This study however made use of time series secondary data and parsimonious error correction mechanism to
test the significant relationship between the level of unemployment and demand for labour, supply of labour,
population, inflation, capacity utilization, gross capital formation and nominal wage rate . Empirical
investigations showed that the rising nominal wages and the accelerated growth of population which affected
the supply side through a high and rapid increase in labour force relative to the absorptive capacity of the
economy appear to be the main determinant of high unemployment in igeria. The econometric results
suggested the need for the government to embark on direct measures capable of creating jobs through
industrialization and mechanization of agriculture. It also recommended that programmes of integrated rural
development and re-orientation of economic activity and social investments towards the rural areas need to be
embarked upon to create an appropriate rural -urban economic balance.

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