This research project examined the effect of urbanization and unemployment on the Nigerian economy from 1980 – 2015. Using Ordinary Least Square (OLS) method. Various statistical test such as R2 square, F – test and T-test was used in evaluating the parameter estimates. The empirical findings of the study revealed that urbanization has a significant negative relationship with unemployment in Nigeria and inflation rate has a negative but insignificant relationship with unemployment rate in Nigeria. This can be done through intensive campaign about birth control. The study therefore recommended that in other to reduce and curb the menace of unemployment in Nigeria, rapid urbanization of the rural areas should be pursued by the government so as to open up such areas to industrial activities and through it reduce unemployment.
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