Political Economy of Labour Market Reforms and Youth Employment Policy in Nigeria: Analytical Evidence from Lagos and Kano States

This study analyses the political economy of labour market reform processes and youth employment policy outcomes in Nigeria, drawing analytical evidence from Lagos State in the South West and Kano State in the North West. Nigeria's youth unemployment and underemployment crisis is simultaneously a developmental emergency and a political governance challenge, with successive employment policy reforms failing to produce structural improvements in youth labour market outcomes. Drawing on political economy of policy reform theory and recent labour market analysis literature from 2020 to 2024, the study employs a mixed-methods comparative research design. Quantitative labour market data from the National Bureau of Statistics are used to profile youth employment trends in both states from 2014 to 2023. Elite interviews are conducted with 45 labour ministry officials, private sector employers, trade union representatives, and youth employment programme managers in both states. Comparative political economy analysis and thematic coding are applied to qualitative data. The study expects to find that political considerations including electoral constituency preferences, informal sector regulatory avoidance, and interest group resistance to labour market formalisation systematically constrain reform depth. Labour market outcomes are also expected to differ significantly between the two states, reflecting their economic structure and governance capacity. Findings will contribute original analytical insights into why youth employment policy reform consistently underperforms in Nigeria and will recommend politically viable reform sequencing strategies. Keywords: labour market reform, youth employment, political economy, Lagos State, Kano State