Read Online

Download PDF (EN)

Abstract

The paper investigates the macroeconomic determinants of vulnerable employment in Nigeria. The ARDL modeling approach to analysis of long run relationships is employed to analyze annual time series data spanning the period from 1991 to 2021. The study finds that vulnerable employment in the country are determined by sector of employment, economic growth, inflation, exchange rate, FDI, trade openness, and financial development. Specifically, it finds that greater openness to international trade, FDI inflows, financial development and industrial sector employment would reduce employment vulnerabilities in the country in the long run. Inflation, currency depreciation and agricultural sector employment exacerbate vulnerable employment in the long run. Economic growth is also found to be positively associated with vulnerable employment in the country – an indication that economic growth in the country has not been inclusive. To reduce employment vulnerabilities and enhance decent employment in the country, the paper recommends greater openness of the economy through cautious implementation of trade liberalization policies, efforts by the government to improve the attractiveness of key sectors of the economy to foreign direct investment, greater development of the financial system, and more employment in the nation’s industrial sector. It further recommends that the government should decisively implement appropriate policies and programmes to promote decent work and formal employment contracts for employees in the nation’s agricultural sector, bring inflation under control and strengthen the nation’s economy while also taking decisive steps to ensure economic growth engenders creation of decent jobs and reduction of vulnerable employment.