Abstract The dynamics of a country’s labor force are closely tied to economic growth, which plays an essential part in deciding the path that a nation will take. This paper investigates the relationship between labor force dynamics and economic growth, emphasizing their importance in fostering sustainable development in Nigeria from 1990 to 2021. Based on the results of the augmented Dickey-Fuller test, it is observed that the variables exhibit stationarity both at levels and first differences, necessitating the application of the autoregressive distributed lag estimation approach the findings showed that Nigeria’s labor force rates and gross domestic product growth are intertwined throughout time. The results specifically demonstrate that the labor force, gross fixed capital formation, and female primary school enrollment have positive and significant long-term effects on economic growth. When compared, the negative effects on economic growth from the age dependency ratio and net migration are significant in the long term. According to the study’s findings, policymakers should focus on policies that support the growth and development of the labor force, including investments in education, training, and initiatives to promote labor force participation. Ensuring a conducive work environment and addressing unemployment and underemployment are vital for maximizing the positive impact of a growing labor force on long-term growth.
Cite this article as: Oyeku, B. V. (2024). Labor force dynamics and economic growth sustainability in Nigeria. Journal of Business Administration and Social Studies, 8(1), 57-66.