Analysis of the Relationship Between Inflation Rate and Unemployment on Economic Growth in Nigeria (2014 – 2023)

Student: Tobiloba Christianah Odu (Project, 2025)
Department of Banking and Finance
Osun State Polytechnic, Iree, Osun State

Abstract

This study examined the effect of unemployment and economic growth in Nigeria between 2014 to 2023. To realize the objective of this study, the study specifically investigated the relationship between unemployment rate and economic growth, and determined the effect of government expenditure on economic growth in Nigeria. Secondary data on government expenditure, unemployment rate for independent variables and real gross domestic product (RGDP) for dependent variable were extracted from annual report of Central bank statistical bulletin. The study employed ordinary least square (OLS) regression with the aids of SPSS statistical package to test the formulated hypothesis. The results of the study showed that government expenditure has a significant and positive effect on economic growth while unemployment rate has insignificant and negative relationship with economic growth in Nigeria. Therefore, the study recommends that a conducive environment for foreign direct investment should be created to ensure Nigeria’s full participation in the global business opportunities that would create job for the teeming population.

Keywords
unemployment economic growth expenditure inflation
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