Government Labour Policy,graduate Unemployment And Labour Productivity In Nigeria

The study evaluates government labour/employment policy, graduate unemployment and labour productivity in Nigeria. It spanned the period between 1987 and 2013.  The model was built on the combination of Keynesian framework and modern labour market theory and the various channels through which labour policy can impact on graduate unemployment and labour productivity in Nigeria. The study employed Ordinary least square method of estimation, co-integration and error correction techniques in estimating the model. Data were sourced from Central Bank of Nigeria annual statistical bulletin/reports (various years) and National Bureau of statistics annual statistical reports. The econometric software used for the study was E-views. The result from trend analysis showed that labour productivity proxied by growth in Gross Domestic Product (GDP) maintained steady and near horizontal movement while graduate unemployment has been on the increase over the years. Co-integration result showed that there exists a long-run linear relationship among the variables used for the study, hence adopting an error correction model. The result clearly indicated that government employment policy proxied in this study by the total number of graduates that have benefited (TNA) from National Directorate of Employment (NDE) since its inception in 1986 have positive and significant influence on labour productivity and negative significant influence on graduate unemployment. The study also found insignificant relationships between graduate unemployment, gross secondary school enrollment and total factor productivity in Nigeria. The study went further to establish unidirectional causal link between government labour policy, graduate unemployment and labour productivity in Nigeria. The study recommends that holistic programme should be established to arrest high trending unemployment in Nigeria. The programme should capture those who are heavily underutilized and grossly underpaid, in order to have a fair representation of the unemployment situation in the country. Government spending pattern should be checked, since the rising government total spending has not translated to increase in labour productivity