Analysis of the Economic Impact of Construction Industry Growth on Employment in Nigeria’s North Central Zone

The construction industry is widely recognised as a significant generator of employment and economic activity, yet the quantitative relationship between construction sector output growth and employment generation in Nigeria's North Central zone has not been rigorously investigated. This study analyses the economic impact of construction industry growth on employment in the North Central geopolitical zone, covering Benue, Kogi, Kwara, Niger, Nasarawa, and Plateau States. A secondary data analytical design was adopted, using construction output data from the National Bureau of Statistics and state employment records for the period 2015 to 2024. Vector autoregression, employment multiplier analysis, and comparative zone analysis were applied. Findings show that a 10% increase in construction output in the North Central zone generates an average of 4.2% increase in formal construction employment and an estimated 6.8% increase in informal and supply chain employment, suggesting substantial indirect economic linkages. Road and building construction subsectors demonstrate the highest employment multipliers in the zone. The study finds that the construction industry's employment contribution in the North Central zone is constrained by low local content in materials supply and dominance of construction activity in FCT-adjacent areas, creating uneven intra-zone employment distribution. Unlike national-level studies, this research provides zone-specific employment modelling with policy relevance for North Central state governments. Recommendations target local content policy, vocational training, and construction investment programming. Keywords: construction industry, employment, economic impact, North Central Nigeria, multiplier analysis