ABSTRACT
Unemployment is a macro economic problem that affects individuals most differently and severely. This study investigated the effect of unemployment on gross domestic product (GDP) in Nigeria. The quarterly data was used for the estimation capturing the periods of 1981 through 2014. The research work used ordinary least square for estimation. The unit root test, etc were carried out in this research work. The researcher was able to find out that there is a negative relationship between unemployment and GDP. Recommendations and policies were suggested to the government in order reduce the rate of unemployment in Nigeria.