IMPACT OF HUMAN CAPITAL DEVELOPMENT ON UNEMPLOYMENT IN NIGERIA

Abstract

The study focuses on the impact of human capital development on Unemployment rate in Nigeria. Time series data were used and the sourced from Central bank of Nigeria's statistical bulletins and Annual Report of National Bureau of Statistics of Nigeria. The Autoregressive Distributed Lagged (ARDL) and Error Correction Model (ECM) was used to establish the short-run and long run causal relations between unemployment rate and Human Capital Development in Nigeria. The result shown that there is strong relationship between Unemployment Rate and human capital development in Nigeria. The Autoregressive Distributed Lagged (ARDL) - Bounds test shows that there is co-integration among the economics variables under review. The Autoregressive Distributed Lagged (ARDL) and the Error Correction Models show that human capital development has a negative impact on unemployment rate in Nigeria. Therefore, the study recommends that government should adopt mechanism to make sure financial and other resources in those sectors are properly utilized to increase the efficiency of the sectors and thereby reducing the level of unemployment and control population rate in Nigeria through efficient primary health care and family planning in order reduce the level of unemployment in Nigeria. Finally, Government should adopt efficient and effective monitoring in the civil service commission in Nigeria in order to reduce unemployment in Nigeria.