Impact of Technological Globalization on Unemployment Rate in Nigeria

Abstract

This study examines the effect of technological globalization on Nigeria’s
unemployment rate from 1991 to 2020, using data from the Central Bank
of Nigeria statistical bulletin, the KOF Globalization Index, and the
World Bank data base. Employing the autoregressive distributed lag
(ARDL) model, the study found that technological and political
globalization, as well as labor force dynamics, significantly impact
unemployment rates. Results indicate that a 1% rise in technological
globalization reduces unemployment by 0.10% in the short term, while
political globalization decreases it by 3.0%. Over the long term, a 1%
increase in technological globalization leads to a 0.51% fall in
unemployment, with political globalization reducing it by 3.6%.
Conversely, the labor force increases unemployment by 3.6% in the long
run. These findings suggest that while globalization in technology and
politics helps lower unemployment, an expanding labor force may raise
it. Based on the above, it was recommended that technological
globalization should be fostered through the encouragement of foreign
exchange trade, digital literacy programs, and remote work skills
training for youth, among others.