ABSTRACT

The highly unstable economic conditions in Nigeria have been a major source of concern among economist and policy makers in recent time. The growth in Nigeria economy has been described as an exclusive growth which is worrisome and calls for concern as the per capita income is low while unemployment and inflation rates are high.This research work sets out to examine the relationship that exists between inflation, unemployment and the economic growth of Nigeria. From the research work, we discovered that unemployment and inflation through the use of the instruments of investments, exchange rate, Government expenditure and money supply could be controlled to achieve economic stabilization. This work also viewed the different types of unemployment well distinguished by economist they include cyclical or Keynesian unemployment, frictional unemployment, structural unemployment and classical unemployment. Some additional types of unemployment that are occasionally mentioned are seasonal unemployment, hardcore unemployment, and hidden unemployment. This work also focused on the types of inflation the world currently face that is Cost-push inflation and demand-pull inflation. This research work consist of a dependent variable in its hypothesis and some independent variables to explain the effects of unemployment and inflation on economic growth, the Johansen co-integration test and a vector error correction method (VECM) will be employed to carry out an investigation on the subject matter to derive the significance of the independent variable on the dependent variable. A data covering the duration of 36 years (1980 – 2016) was introduced in the model, the result was established, interpreted and conclusion was drown with recommendation.