Economic Recession and Youth Unemployment in Nigeria

Abstract

This study investigates how economic recessions impact youth unemployment in Nigeria. Secondary data on youth unemployment rate (YUEMP), recession periods (ERES) and Inflation (INF) were sourced from CBN statistical bulletin and World Bank Indicators. The ordinary least square (OLS) estimation method and the error correction model were used. Findings revealed that economic recession has a positive and significant impact on youth unemployment rate in Nigeria (i.e. β = 0.36, p < 0.05). While inflation rate bears a negative and significant impact on youth unemployment rate in Nigeria (i.e., β = -3.47, p < 0.01). Findings suggest recessions disproportionately hurt youth due to structural labor market flaws. Based on the above, the study concludes that economic recessions have a profound and lasting effect on youth unemployment in Nigeria, exacerbating existing vulnerabilities in the labour market. It is thus important for policymakers to prioritize vocational training and economic diversification in Nigeria.