This study was carried out to examine youth unemployment in Nigeria: causes and effects 2005 – 2015. Unemployment is expressed as a percentage of the total available work force. The level of unemployment varies with economics conditions and other circumstances. This is mostly seen in graduate of various institutions of learning especially in under developed nations like Nigeria. To this end, two research hypotheses were formulated to guide this study. The data was collected from secondary sources. The secondary data were collected with the help of CBN Statistical Bulletin and other journals and articles. The data collected were analyzed using Ordinary Least Square (OLS) econometric technique to test research hypotheses. The study reveals that unemployment has significant effects on Nigerian GDP growth from 2005 – 2015.y; there is a significant relationship between youth unemployment and economic growth. The study concluded with some recommendations that government should formulate policy that will aim at discouraging gender discrimination in the labour market since this will provide more opportunities for the females in the labour market participation final and government should embark on provision of social amenities in the rural areas so as to reduce the urban-rural drift which have consequences of reducing the rate of unemployment.
1.1 BACKGROUND OF THE STUDY
Unemployment has been categorized as one of the serious impediments to social progress. Apart from representing a colossal waste of a country’s manpower resources, it generates welfare loss in terms of lower output thereby leading to income and well-being (Akinboyo 1987 and Raheem, 1993). Unemployment is a very serious issue in Africa and particularly Nigeria with its emerging population.
The need to avert the negative effects of unemployment has made the tackling of unemployment problems to feature very prominently in the development objectives of many developing countries. Incidentally, most of these countries’ economies are also characterized by low productivity. Thus, it seems obvious to many policy makers that there must be a straight forward connection between productivity and unemployment.
Unemployment has call for a greater concern in Nigeria economy. It has continued to be the major macroeconomic objectives of the government. It constitutes a series of serious developmental problems and is increasingly more serious all over Nigeria. The major policy of the government and the international agencies is targeted at reducing unemployment. Since the population explosion begun, the developing nations have been characterized by unemployment.
In the words of Englama (2001), unemployment causes misery, social unrest and hopelessness for the unemployed. The recent ethnic and religious crisis in some parts of this country is largely attributed to the problem of unemployment. Similarly, the problem of armed robbery and other social vices are largely traced to unemployment as many robbers confessed to the fact that they were led into robbery on account of unemployment.
Okun’s (2002) proposes a negative relationship between developments of the unemployment rate and the genuine total national output (GDP) by concentrating on the observational relationship amongst unemployment and GDP varieties. He underscored that subsequently of changes in total request, industry changes their creation design which prompts to changes sought after for work which adjust the unemployment rates.
However, one of the best difficulties of the Sub – Saharan African economies today is the high rate of unemployment that has been on the expansion throughout the years. The issue of youth unemployment has been of incredible worry to the business analysts, economist and policy makers in Nigeria since mid 1980s.
Therefore, the researcher attempts to consider some key concepts which shall include unemployment in Nigeria in previous and recent times; factors responsible for unemployment in Nigeria; effects of unemployment on the making of Gross Domestic Product. Recommendations would be proffered towards the end of this research which will highlight ways of solving unemployment menace in Nigeria.