A cursory review of aggregate data for the contemporary sectors in Nigeria would support this view, suggesting that employment declined during the 1980-2010.The increase in the number of unemployed, coupled with the relatively high inflation level of 10.5 percent, pushes Nigeria’s misery index upward to 34.4 percent. Nigeria’s misery index climbed to 32.9 percent in 2010; and with the higher redundancy rate this could increase to 40 percent. A country’s misery index is the sum of the unemployment rate in the country and the consumer price level. The study employs simultaneous equation model to examine the dis-aggregated data from Nigeria Labour force. This enables the Researcher to find out the declining rate of real wages for specified classes of labour. The work force is characterized by greater education, training, and experienced; workers with a given level of attributes received a lower real wage by the end of the recession than before it. Despite this drop in real wages, employment in the Nigeria labour market declined. The Researcher is of the opinion that the most dangerous yet potential impact of an increasing unemployed mass is the likelihood of a breakout in social unrest, social deviancy and outright criminality.
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