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Africa Economic Brief - The Challenge of Job Creation in Nigeria



In this paper attempt is made to show the structural nature of jobless growth in Nigeria. This is done from the perspective of, firstly, structural transformation and its effect on the resultant sectoral composition; secondly, from labor market dynamics; and thirdly, from production organization of sectors that are driving GDP growth. We found that the rate of unemployment rose by 1.1% a year between 2000 and 2010. This is caused, on the supply side, by a 2.5% annual increase in the number of new entrants into the labor market; and on the demand side, by sectors’ inability to create sufficient number of jobs. Job creation increased only by 1.4% a year. We attributed this to capital intensive growth as seven of the nine broad sectors studied are capital intensive and together they accounted for 61% to 74% of the GDP growth.

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