Еffect of unemployment and inflation on Nigerian economic growth: a time-series analysis

Abstract

This study investigates the effect of unemployment and inflation on economic growth in Nigeria from 1999 to 2021. Employing econometric techniques such as descriptive statistics, trend analysis, and regression analysis, the study explores the relationships between these variables. Findings reveal a significant positive correlation between inflation and GDP growth, while unemployment exhibits a negative correlation with GDP growth. The analysis explains approximately 54.1% of the variance in GDP growth, highlighting the substantial influence of unemployment and inflation on economic performance. Policy recommendations include measures to control inflation, stimulate job creation, and diversify the economy. By addressing these factors, Nigeria can foster sustainable and inclusive economic growth.