Examining the Effect of Government’s Social Expenditure on Unemployment in Nigeria
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Date
2024-06-04
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Abstract
This study examines the effect of government social expenditures on unemployment in Nigeria from 1990 to 2022.
Using the Vector Error Correction Model (VECM) method to analyse both the short- and long-run effects, the
results revealed that population growth had a significant positive impact on unemployment, while education
expenditure showed a positive but insignificant effect. Conversely, health and infrastructural expenditures
demonstrated negative impacts on unemployment, suggesting that investment in these areas contributes to reducing
unemployment. Based on these findings, it is recommended that policymakers increase public investment in the
health sector and infrastructure. This could involve expanding healthcare infrastructure, enhancing funding for
medical training programmes, and improving healthcare delivery systems. Furthermore, the government should
prioritise and scale up infrastructure development projects, such as road construction, public transportation
systems, and urban development initiatives. These projects have the potential to stimulate job creation across
various sectors, including construction, maintenance, and management, thereby addressing unemployment and
fostering economic development.