Miftahu Idris


The instability of unemployment and inflation has attracted the attention of policymakers especially on how to maintain low and stable unemployment as well as relatively stable prices so as to achieve high economic growth. However, it appears that government intervention has not been able to cure the ills in the Nigerian economy. In order words, full potentials of labour-surplus have not been fully exploited. In view of the aforementioned, this study investigates the effect of unemployment and inflation on economic growth in Nigeria using annual time series data covering the period of 1986 to 2020. To examine the model coefficient, ordinary least square technique is employed. Findings indicate that the coefficient of unemployment has a negative and significant effect on economic growth in Nigeria; while inflation exerts a positive effect. The nature of unemployment and inflation characterizing the Nigerian economy are structural and cost-push respectively; hence the need by the government and relevant agencies to formulate policies to encourage self- employment and reduce cost of doing business so as to achieve a high, rapid and sustainable economic growth.


Unemployment, Inflation, Economic growth, Ordinary least square

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