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The impact monetary and fiscal policies towards solving unemployment problem in Nigeria in comparing the variable growth of unemployment, Government Expenditure and Money Supply.
I want to regress the monetary and fiscal policies against each of the variable using co-efficient of regression
The effect of federal expenditure and money supply on rate of unemployment in Nig. 1980-2000
This study is motivated by the fact that federal expenditure and money supply as a tool on the rate of unemployment. But to which extent, these instrument have contributed either to worsen the problem of unemployment or alleviate it.
To investigate this problem, two hypotheses were formulated as follows.
Ho: There is no relationship between money supply and unemployment.
Hi: There is no relationship between federal expenditure and unemployment.
In testing the hypothesis, secondary data was used and analyzed using regression and correlation analysis as well as student t-test. The following are summary of the major findings from the analysis carried out in the study.
Federal expenditure and money supply contributed little to the reduction on the rate unemployment between (1980-2000).
The package of National directorate of employment programme conmcerning encouragement and generation of employment opportunities for most especially school teachers from secondary school and graduate from higher institution seems to be less vigorous since 1992 till date.
The inability of government of both federal and state levels to lift embargo on public sector employment from (1994 to August 1999) could be partly responsible for the high level of graduate unemployment in the Urban areas.
On the strength of the findings, the following recommendations were made.
The use of these tools (federal expenditure and money supply) need to be reviewed to enhance their potential for addressing the rate of unemployment.
Alternative tools may be used to complement federal expenditure and money supply towards the alleviation on the rate of unemployment.
The tool thrust should be the establishment of most micro-credit scheme to assist enterprising unemployed people to set on micro business across the country.
There is need to build up human capital, this mean improving the knowledge, shall, capacities and the mental and physical conditions of the masses.
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