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The study examines the impact of government expenditure to education on unemployment in Nigeria between 1980-2017. The study adopts Dynamic least square (DOLS) method of estimate and annual time series data were collected between 1980 to 2017. The study examines stochastic characteristics of each time series by testing their stationarity using Augumented Dickey Fuller (ADF) test and Phillip Perron method. The findings revealed that that there exist unidirectional relationship between recurrent expenditure to education and unemployment. And that Capital expenditure to education is an important determinant of unemployment. The R2 from the result shows that unemployment rate is explained with 55% of the explanatory variables and as a result was conform by the higher adjusted R-square value of about 41%. The study suggested that Government should implement the minimum UNESCO recommendation of 26% budgetary allocation to the educational sector. It was also recommended that diversification of funding by governments should be based on a scientific reckoning of actual needs of the education sector. The use of private sector funding, introduction of sundry fees, increase in the cost of hostel accommodation being advocated by the federal government may not be welcome in Nigeria given high level of corruption. They can be accepted if free and fair democratization and economic independence is established in all ramifications in the country.