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THE IMPACT OF INDUSTRIAL PRODUCTIVITY ON EMPLOYMENT IN NIGERIAN TEXTILE INDUSTRY

ABSTRACT
The problems of employment and productivity are issues most countries of the world are eager to resolve today without one hurting the other. Ambiguous relationship has been found between the two variables in theoretical and empirical literature. Against this background, this study investigated the responses of employment to productivity changes in the Nigerian textile industrial sector. Specifically the study investigated: (i) the difference in productivity growth in respect of size, location and year of establishment of firms; (ii) the difference in the impact of the growth of productivity on employment generation in respect of size, location and time of establishment of the firms; (iii) the causal relationship between productivity and employment;(iv) the impact of productivity on employment in the short and long-run.; (v) the trade-off between the two variables; (vi) the speed of adjustment between the two variables; and (vii) the policy area most conducive to breaking any trade-off between them.

Primary and secondary data were collected from selected textile firms in Nigeria. Multi-Stage sampling technique was adopted. Stage one used the purposive sampling method to select 37 of the firms on the basis of number of staff and date of establishment and to select the personnel, administrative and plant managers of each of the firms. Secondly, the random sampling method was used to select 7 other staff from each of the firms. Lastly, 10 union leaders were randomly selected from the two textile union houses in Kaduna and Lagos. This brought the total number of respondents to 380. A questionnaire was designed and administered to collect relevant data from the respondents. Secondary data on output, labour and capital from 1998 to 2009 were collected from the record of the firms and transformed to data on the autonomous, labour and capital productivities using the

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