ABSTRACT
The term unemployment can be defined as an economics condition
marked by the fact that individual actively seeking jobs remain
unhired. 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. The study was designed to investigate
the impact of unemployment on economics growth in Nigeria of 41
years (1970-2010). The research focuses on determining the cause
and impacts of unemployment, and how the problem of
unemployment in Nigeria will be reduced, to a minimal level or even
eradicated. It focuses on this objective is toa determine the
relationship between unemployment and economic growth in Nigeria
(GDP). The method of analysis used in testing the hypothesis is the
hypothesis is the T-test, F-test etc. the major findings was that
unemployment has a negative impact on the gross domestic product
(GDP) of the Nigeria economy. Some suggestions and policy
recommendations were made based on the findings.

CHAPTER ONE
1.1 BACKGROUND OF THE STUDY
Unemployment is generally agreed to be symptom of macroeconomic
illness which could be “voluntary” or in “Voluntary”. When
is said voluntary I mean a condition where somebody chooses not to
work because they have a means of support other than employment
example is the idle rich man. On the other hand involuntary
unemployment exists when persons are willing to work at the
prevailing rate of pay but unable to find work. (Anyanwu 1995).
Balogun, ed et el (2003) also defined unemployed as the
percentage of the percentage of the labour force that is without job,
but is able and willing to work. In Nigeria however the ability and
willingness to work is not sufficient. It is necessary for the
unemployment to be registered with an employment bureau in order
to be recognized as unemployed. Yet, from an economic viewpoint,
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the unregistered unemployed are part of the labour force and are,
therefore, technically unemployed. In Nigeria, unemployment data
are obtained through labour force sample surveys which ask if the
respondent has worked in the week preceding the survey. However,
the international labour organization (ILO), realizing the
shortcomings of the labour survey as it affects developing economies,
such as Nigeria, with a large informal sector, has encouraged a
review of the methodology to incorporate further disaggregation of
respondent responses to bring out the true rate of unemployment.
In order to establish the type of unemployment existing in an
economy, economists have classified unemployment as „frictional‟,
„seasonal‟ „structural‟ or cyclical‟.
1. Frictional Unemployment occurs when people are temporarily
out of work because they are changing jobs. This is
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unavoidable in an economy in which both the labour force and
the jobs on offer are continually changing.
2. Seasonal unemployment is said to occur in a situation in which
people are laid off seasonally, due to the nature of the job they
do, e.gagriculture workers in developing countries may be laid
off during the growing season.
3. Structural unemployment is the unemployment that exists
when an economy is in full employment. Structural
unemployment occurs where employment in one or more
declining industries is falling.
It is as result of movement in the natural employment rate itself,
which can result from changes in labour market institutions,
demographic shifts etc. this situation is brought about by
economic variables, such as the level of aggregate demand and
the actual and/or expected real wage rate.

4. Cyclical unemployment occurs as result of fluctuations around
the natural employment rate, which can be attributed to
changes in aggregate demand.
Industrial relations refer to the process of conflict resolution, such
as collective bargaining, between employers and employees in the
course of fulfilling an employment contact. It could be achieved
either by conquest (when one party overwhelms the other), or by
mutual consent. The latter, preferred outcome is likely to result
from collective bargaining. Continuous industrial harmony is,
therefore, often the result of positive industrial relations.
In Nigeria, unemployment is regarded as one of the most
challenging economics problem facing the federal government.
Although, there are variations in the measurement of
unemployment, official estimates show their results as follows:
from 1985-2003, the data shows a highly fluctuation trend from
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both the urban and rural sectors of the economy. From the data,
the 1985 figure shows the percentage of the national urban and
rural unemployment as follows: national 6.10%, urban 9.8%m
rural 5.2%and in year figure is as follows: national 3% urban
3.8% rural 2.7 %( CBN 2004).
The rising rate of the population of the country which is faster
than the job opportunities, a situation in which birth rate is rising,
death rate falling and the population growth rate is between 2.5%
and 3% unemployment is bound to exist. There had been also a
total neglect of the agricultural sectors and consequent mass
exodus of able bodied youths from the rural to urban areas in
search of the none existing while cooler jobs.
This further reduces employment in agriculture and puts
pressure on existing urban jobs (Anyanwu 1995)
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1.2 STATEMENT OF THE PROBLEM
Unemployment has reached a very alarming proportion in
Nigeria, with a greater number of the unemployment being
primary and secondary school learners and university graduates.
This situation has recently been compounded by the increasing
unemployment of professionals such as bankers, engineers and
doctors. The toll is within the productive segment of the Nigeria
population (Vision 2010).
The extent of unemployment in Nigeria in is not justified by the
available financial statistics phenomenon. This is because of the
nature of unemployment in the country where many job seekers do
not see the need for registration as unemployed due to expression of
futility in such exercise. This harnesses the sharp disparity between
the official statistics on the phenomenon and the reality on ground
(Bello 2003). Disguised unemployment otherwise known as concealed
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unemployment is a situation in which more people are available for
work than is shown in the unemployment statistics (Bannock et el
1998)