Technology and the Nigerian Labour Market Output: Disruptive Innovation or Economic Opportunity?

Abstract

This study analyses the relationship between technological advancement and labour market performance in Nigeria, with the aim of determining whether innovation has enhanced employment outcomes. Using the Autoregressive Distributed Lag (ARDL) from 1985-2023 approach, the study examines both short-run and long-run dynamics while controlling for education, institutional quality, life expectancy, capital formation, and technological development. The short-run results show that education and previous labour market conditions significantly improve employment outcomes, whereas technological investment and capital formation have no immediate effect. In the long run, education, security, and life expectancy emerge as key drivers of labour market performance, while technology remains statistically insignificant despite its positive sign. The error correction result confirms a gradual adjustment toward long-run equilibrium. These findings suggest that Nigeria’s labour market lacks the structural readiness required to translate technological progress into meaningful employment gains. The study therefore recommends educational reforms, expanded vocational and digital skills training, and sustained re-skilling programmes to ensure that technological advancement supports inclusive labour market growth.