IMPACT OF POPULATION GROWTH ON UNEMPLOYMENT IN NIGERIA: A DYNAMIC OLS APPROACH

Abstract

This study investigates the relationship between population growth and unemployment in Nigeria from 1980 to 2022, drawing on the Demographic Transition Theory, Structural Unemployment Theory, and Endogenous Growth Theory as a theoretical framework. Employing a quantitative approach with Dynamic Ordinary Least Squares (DOLS) regression, the research analyzes time series data to explore the impact of population growth on unemployment. The results suggest that, within the specified period, reduction in population growth alone does not significantly affect the unemployment rate in Nigeria, emphasizing the intricate nature of labor market dynamics beyond demographic factors. The theoretical framework highlights the importance of addressing structural unemployment through targeted skill development, comprehensive education reforms, and investments in technology and innovation. Additionally, the study underscores the need for integrated demographic and labor market policies, emphasizing monitoring and evaluation for evidence-based policy adjustments. The findings contribute to a nuanced understanding of the Nigerian labor market, guiding policymakers toward multifaceted strategies for sustainable development and inclusive growth.