GASPRO International Journal of Eminent Scholars

ABSTRACT
In Nigeria, price increases and population growth play a significant role in deciding the rate
of job growth. For the period 1980 to 2019, this study explores the effect of price shifts and
population dynamics on employment in Nigeria. To evaluate the short-run and long-run
relationship between price changes proxied by the consumer price index, population
dynamics, and employment proxied by labor, the analysis used the autoregressive distributive
lag (ARDL) model, an estimation technique. Consumer price index, foreign direct investment,
population growth rate, and tax revenue are the regress variables in the model, whereas
labor, a proxy for employment, is the dependent variable. Furthermore, the ADRL bound test
confirmed that there really is no long run relationship between employment proxied by labor
force, price changes proxied by consumer price index, foreign direct investment, population
growth rate, and tax revenue, whereas the Augmented Dickey Fuller unit root test confirmed
variables are stationary at level and at first difference. The study's results show that price
increases, as measured by the consumer price index, have a positive yet marginal effect on
employment in the short and long run. Also, population has a negative and negligible impact
on jobs in the short and long term. Besides that, the report suggests that government adopt
policies that will assist in reducing population growth rates in order to regulate labor
supply and, as a result, decrease unemployment rates.
KEYWORDS: price changes, population dynamics, employment, system-ARDL