Abstract:
The study examines the impact of economic growth and inflation on unemployment rate in Nigeria
from 1981 to 2022 using Autoregressive Distributed Lag Model. Findings show that economic
growth, inflation have a positive effect on unemployment in the short-run and age dependency ratio
affects unemployment negatively in the short run. Study outcomes appears to violates both the Okun
law’s and Phillips curve in the Nigerian economy in the short run. However, in the long-run, eco nomic growth is positively related to unemployment and inflation negatively associated with unem ployment; thereby affirming Phillips curve which holds an inverse relationship between the two
variables. While, age dependency ratio affects unemployment negatively. The violation of both the
Okun law’s and Phillips curve in the Nigerian economy in the short run suggest that there are other
factors influencing the level of unemployment rate in Nigeria. Therefore, the study recommended
implementation of sound macroeconomic stabilization policies with the of achieving a single infla tion, low unemployment rates and high economic growth rates.
