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.
