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economy. This was stated in a work by Ogunrinola (1991) who examined the issue of employment and incomes of the urban informal sector of Ibadan. He found out that the urban informal sector of Ibadan has contributed significantly to employment creation, skill development and entrepreneurial development. In the same vain also Onwuioduokit (2006) looked at the major nexus between unemployment and several macroeconomic variables in nigeria and then concluded that that the consistent shift in the employment variables since 200 has made it inadequate to quantify the real state of the country’s unemployed.

And in different countries also so many studies have been done using both the comparative and empirically analysis. Some of their thoughts are; in the Euro zone the relationship between unemployment was also examined by Walterskirchen (1999) who made an indepth research into the link between economic growth and the labourt market. His findings were that changes in employment and unemployment rates are governed were affected by economic factors and also demographic influences and labour market policies. His findings established a strong positive correlation between economic growth change in level of employment after he used time series analysis and panel data. Many studies both I Nigeria and beyong have used times series data to explain trends and establish the relationship between the two variables. The research that will be done will also follow suit in the same line of action.

METHODOLOGY

This succession describes the method that will used in this research, the method of data collection, the kind of analysis that will be done and it also talks According to Ogunrinola and Shodipe, the model used which was based on Fofana’s modeling of the relationship between economic growth and unemployment in Ivory Coast is more appropriate in describing the nexus. The model will be stated below with little modifications:

Two factors only will consider as to be held responsible for the change in employment levels they; the real GDP and Public expenditure.

E=f(RGDP, PE) ---------------- (1)

Where E= Total employment

RGDP= Real Gross Domestic Product

PE= Public Expenditures

Assuming that a linear relationship among the two independent or explanatory variables, the explicit form of equation (1) becomes

E=βo + β1RGDP + β2PE + ? ---------------- (2)

? here represents the error term which includes all other externality that contributes to the growth in employment.

E=?0 + ?1RGDPGR + ?2PE + ? ---------------- (3)

This equation represents the real growth rate Of GDP

We can then similarly estimates the non-linear form of equation (1) which now become

e= αo + α1rgdp + α2pe + μ ---------------- (4) and

e= bo + b1rgdpgr + b2pe + e ---------------- (5)

Then when we want to carry out this analysis we will recognize that there is a need to assess the stationary of the data. To avoid spurious regression we do not regress non stationary of one data over another non-stationary data. And this also helps us to reduce the level of bias and inconsistency in our outcome. Then a time series analysis is then carried out and the Chi-square test (x2) will then be used to test the null hypothesis using the statisti