Full Project – RELATIONSHIP BETWEEN UNEMPLOYMENT AND INFLATION IN NIGERIA (1980-2012)
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1.1 BACKGROUND OF THE STUDY
Inflation is regarded as the general rise in the prices of goods and services over a period of time in the nation Balami (2006). It is also connected with money and referred to as too much money in circulation chasing few commodity. Hamilton (2001) describes inflation as the increase in money supply as against low production level in the country. It is measured as the rate of increase in the general price level over a specific period of time.
Unemployment is defined as the number of economically active population without work but are willing and seeking for work. These include those who have lost their jobs and have voluntarily left work (World Bank, 1998). The research therefore seek to determine the relationship between unemployment and inflation in Nigeria for the period (1980-2012)
1.2 STATEMENT OF THE PROBLEM
Inflation and unemployment are the major cause of underdevelopment
In the country. The Nigerian economy is greatly affected by inflation, unemployment resulting in economic recession. Adebayo and Ogunrinola,(2006).Unemployment has led to increase waste of the nations human resources ,while inflation has resulted in the general decline of the living standard of the people . Consequently, the full potentials of labour-surplus economy have not been fully exploited. Adebayo, (2010).The problem confronting the research is to determine the relationship between unemployment and inflation in Nigeria (1980-2012).
1.3 OBJECTIVES OF THE STUDY
Inflation is regarded as the general rise in the prices of goods and services over a period of time in the nation Balami (2006). It is also connected with money and referred to as too much money in circulation chasing few commodity. Hamilton (2001) describes inflation as the increase in money supply as against low production level in the country. It is measured as the rate of increase in the general price level over a specific period of time.
Unemployment is defined as the number of economically active population without work but are willing and seeking for work. These include those who have lost their jobs and have voluntarily left work (World Bank, 1998). The research therefore seek to determine the relationship between unemployment and inflation in Nigeria for the period (1980-2012)
To determine the relationship between unemployment and inflation in Nigeria
To determine the causes of unemployment and inflation in Nigeria
To determine the effect of unemployment and inflation in Nigeria
1.4 RESEARCH QUESTIONS
What is the relationship between unemployment and inflation in Nigeria?
What are the causes of unemployment and inflation in Nigeria?
What is the effect of unemployment and inflation in Nigeria?
1.5 SIGNIFICANCE OF THE STUDY
The study shall elucidate on the relationship between unemployment and inflation in Nigeria.
It shall also serve as a veritable source of information to economic experts and adminitrators including government officials for the formulation of policy
1.6 RESEARCH HYPOTHESIS
Ho The level unemployment and inflation in Nigeria is low
Hi The level unemployment and inflation in Nigeria is high
1.7 SCOPE OF THE STUDY
The study focuses on the appraisal of the relationship between unemployment and inflation in Nigeria.
1.8 LIMITATIONS OF THE STUDY
The research was confronted by some constraint including geographical factor and logistics.
1.9 DEFINITIONS OF TERMS
INFLATION DEFINED
Inflation is regarded as the general rise in the prices of goods and services over a period of time in the nation Balami (2006). It is also connected with money and referred to as too much money in circulation chasing few commodity. Hamilton (2001) describes inflation as the increase in money supply as against low production level in the country. It is measured as the rate of increase in the general price level over a specific period of time.
UNEMPLOYEMENT DEFINED
Unemployment is defined as the number of economically active population without work but are willing and seeking for work. These include those who have lost their jobs and have voluntarily left work (World Bank, 1998).
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Full Project – RELATIONSHIP BETWEEN UNEMPLOYMENT AND INFLATION IN NIGERIA (1980-2012)