SELECTED MACROECONOMIC VARIABLES AND UNEMPLOYMENT SITUATION IN NIGERIA FROM 2006 TO 2016

Abstract

This study examines the importance of macroeconomic variables on fiscal policy in the management of the national economy, and its resultant effect on unemployment situation in Nigeria with some selected macroeconomic variables influence on unemployment rate. Secondary data were collected from the Central Bank of Nigeria (CBN) Statistical Bulletin spanning over a period of 11 years (2006-2016). Correlation and Regression analysis were used to test the hypotheses. Correlation test shows that both the inflation rate and exchange rate were positively related to unemployment rate. Although, the inflation rate has a weak correlation with unemployment but in the case of exchange rate, the relationship is strong. Meanwhile, interest rate and money supply have negative relationship with unemployment rate. However, they all exert weak association. The study concludes that having a better understanding of the interaction of functioning of the labour market with macroeconomic variables are fundamental and a driving force for any economic development