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IMPACT OF POPULATION GROWTH ON THE UNEMPLOYMENT LEVEL IN NIGERIA (1981-2013).

IMPACT OF POPULATION GROWTH ON THE UNEMPLOYMENT LEVEL IN NIGERIA (1981-2013).

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IMPACT OF POPULATION GROWTH ON THE UNEMPLOYMENT LEVEL IN NIGERIA (1981-2013).

Chapter one

Introduction

Background of the study:

The alarming rate of population growth and unemployment in Nigeria has prompted policymakers to develop effective and efficient economic measures to reverse this negative trend. In recent years, one of the most pressing issues with population increase in Nigeria has been human welfare and development, as rapid population growth can have major effects for citizens’ well-being.

According to recent PMC (population media centre, 2015) estimates, Nigeria is currently the world’s eighth most populous country, with a population of 182,201,962 and a population growth rate of 2.54%. It is anticipated to double over the next 28 years if allowed unchecked.

If development entails the improvement of people’s standard of living – their incomes, health, education, and general well-being – and if it also encompasses their self-esteem, respect, dignity, and freedom of choice as seen by (Amartya Sen, 1999)

then the really important question about population growth is how does Nigeria’s population growth contribute to, or detract from, the chances of Nigeria realising the goals of development, not only for the current generation.

Furthermore, how can Nigeria cope with massive increases in the labour force in the future decades? Will job opportunities be plentiful? Or will it be a significant achievement simply to avoid unemployment levels from rising?

According to the National Bureau of Statistics, in the first quarter of 2016, the national unemployment rate was 5.5%, while the labour force participation rate was 71.1%. Females had a higher unemployment rate (5.7%) than men (5.2%).

In light of the preceding difficulties, and in an attempt to answer these essential questions, this study seeks to assess the impact of population growth rate on unemployment levels in Nigeria.

This is because a country’s population growth rate remains an important determinant in economic progress, and if not controlled appropriately, it can exacerbate the scourge of poverty.

Population increase, on the other hand, can be an important component in providing a workforce for the production of goods and services to improve economic development, and it continues to be a major determinant of a country’s investment potential. It can have a double-edged effect on the country’s economy.

Empirical evidence also shows that a rapidly growing population rate has serious implications for the provision of productive employment or decent work, because rapid population growth is typically accompanied by a proportionate increase in the labour force supply; this means that the rate of job creation should match the rate of labour force supply.

Within the Nigerian setting, the rate of labour force supply has outpaced that of job creation, meaning that unemployment or youth unemployment rates are fast increasing. In other words, the number of people seeking work grows faster than the number of available jobs. This type of situation poses a serious threat to society.

According to a research study conducted by the United Nations in 2006, they looked at the effects of a high population growth rate on unemployment levels.

Their research findings clearly show that when an ever-increasing number of workers are unable to be absorbed in the country’s modern economic sectors, they are forced to work in unproductive service occupations or return to the traditional sector, which has low productivity and subsistence wages.

This abundant supply of cheap labour tends to stifle technological progress, while industrialization is hampered by widespread poverty, which diminishes demand for manufactured goods.

Low saving rates and labour skills hinder the full utilisation of natural resources, leading to joblessness, frustration, disappointment, high rates of social vices and criminal activities such as robbery, prostitution, drug trafficking, underdevelopment trap, widespread extreme poverty and hunger (absolute poverty), youth restiveness, apathy, cynicism, and possible revolution.

Statement of the problem.

As previously noted, unemployment and high population growth rates cause major socioeconomic difficulties. It not only has an impact on the economic and sociopolitical lives of Nigerians, but it also raises serious concerns among international organisations and donor agencies about the policies implemented by policymakers in the country to checkmate and address this ugly trend.

The influence of population growth on unemployment in Nigeria affects not just the current generation, but also future generations. According to the National Bureau of Statistics (2016), Nigeria’s unemployment rate was 12.1% in March 2016, up from 10.4% in the fourth quarter of 2015, and the highest level since December 2009.

The number of unemployed increased by 1.8 percent to 9.485 million, employment increased by only 0.12 percent to 69 million, and the labour force increased by 2 percent to 78.4 million.

Meanwhile, youth unemployment rose to 21.5% from 19%. Nigeria’s unemployment rate averaged 9.04 percent from 2006 to 2016, with an all-time high of 19.70 percent in the fourth quarter of 2009 and a record low of 5.10 percent in the fourth quarter of 2010.

Rapid population growth in Nigeria is also associated with unemployment, with figures ranging from 17 percent per year for the entire population to 60 percent for youths because job opportunities are fewer than the number of people looking for them, and stagnating the economy because a large proportion of available resources is consumed rather than invested to drive growth.

The impact of population increase on unemployment levels in Nigeria has continued to elicit different conclusions among experts due to a lack of agreement on the direction of causality between the two variables. This could cause challenges for policymakers when creating national policies.

Furthermore, the various methodologies used by different researchers over the years contribute to conflicting submissions and inferences drawn among scholars, which can create methodological issues for future researchers who wish to conduct additional studies on this topic.

For example, certain scholars and researchers’ studies indicate that there is a long-term, significant effect and direct association between population growth rate and unemployment rate in Nigeria.

Others demonstrate that there is no long-run, substantial influence or causal relationship between population growth and unemployment rates in Nigeria.

The goal of this study is to reconcile the conflicting views and perceptions of the various researchers and scholars in trying to identify if there exists a direct causal relationship, a significant effect, and a long-run relationship between population growth and unemployment level in Nigeria between 1991 and 2015.

1.3 Goals and objectives of the study

The purpose of this study is to determine the influence of population increase on unemployment levels in Nigeria, including how it has affected both people and the economy from 1991 to 2015.

The goal is to evaluate the numerous alternative policy alternatives available on the influence of population increase on unemployment in Nigeria in order to make the best policy recommendations. The study’s particular aims are:

[1] To evaluate whether there is a long-term relationship between population growth and unemployment levels in Nigeria

[2] To explore the causal relationship between population growth and unemployment rates in Nigeria.

[3] To determine the statistically significant effect of population growth on unemployment levels in Nigeria using the Ordinary least squares approach in order to address the issue of population growth rate and unemployment in Nigeria.

· Relevant research questions.

1. What is the long-term link between Nigeria’s population growth rate and its unemployment rate?

· Is there a link between population growth and unemployment rates in Nigeria?

Is there a correlation between population increase and unemployment in Nigeria?

1.5 Relevant Research Hypotheses.

Hypothesis 1.

H0: There is no long-term association between population growth and unemployment in Nigeria.

H1: There is a long-term association between population growth and unemployment rates in Nigeria.

Hypothesis 11.

H0: There is no direct association between population growth and unemployment rates in Nigeria.

H1: There is a causal link between population increase and unemployment in Nigeria.

Hypothesis: 111

H0: Population increase has no substantial effect on the unemployment rate in Nigeria.

H1: Population increase has a substantial effect on the unemployment rate in Nigeria.

1.6 Significance of the Study

The relevance of this finding cannot be overstated. First, the study attempts to assess the relationship between population growth rate and unemployment in the country.

The knowledge gathered will be extremely beneficial to policymakers as a foundation for developing or designing policies and strategies to address the country’s long-standing concerns of unrestrained population growth and unemployment.

The ultimate benefit is that if population growth is properly controlled and unemployment is successfully resolved, it will lead to an increase in productivity in the country, as well as an increase in economic growth and development and a higher standard of living for the citizens.

The government and its agencies will benefit from this research study because the findings will serve as a blueprint for government policies aimed at reducing unemployment and limiting population growth in order to educate citizens about the importance of family planning.

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