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The term ‘unemployment’ can be defined as an economic condition marked by the fact that individuals actively seeking for job remain unemployed. Unemployment is very common in under-developed nations like Nigeria and it affects graduates of various institutions of learning. The study was designed to investigate Unemployment in Nigeria  for the period of 29 years (1982 – 2010). The focus of the research was to determine the cause and impacts of unemployment and this problem can be reduced in Nigeria to a minimal level or if possible, eradicated. The objective of this study is to determine the relationship between unemployment and economic growth in Nigeria (GDP). The method of analysis used in testing the hypothesis is T-test, F-test etc. Data for the study was obtained from the Central Bank of Nigeria Statistical Bulletin. The major finding was that unemployment has a negative impact on the gross domestic product (GDP) of the Nigeria economy. Based on the findings, some recommendations of policy and suggestions have been made.



1.1    Introduction

Unemployment is defined as an economic condition marked by the fact that individuals actively seeking jobs remain unhired. Unemployment is expressed as a percentage of the total available work force. It is seen as a macroeconomic and sociological problem which arises as a result of insufficient and non-availability of jobs to correspond with the growing population. Even those who are employed, sometimes live with the fear of retrenchment. The term unemployment could be used in relation to all the factors of production. But in reference to labour, there is unemployment if it is not possible to find jobs for all those who are eligible and able to work. Labour is said to be underemployed, if it is working below capacity or not utilized in production employment can either be ‘voluntary’ or ‘involuntary’.

Voluntary unemployment is a situation where somebody chooses not to work because they have means of support other than employment e.g. idle rich man.


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