This research work was motivated with the desire to alleviate the prevailing stagnating rate of unemployment in Nigeria by studying the deficits and surpluses of the Capital market. This study analyses the impact of capital market on employment generation in Nigeria from 1980-2015 with the use of time series data. The research technique employed was the ordinary least square (OLS) and Johansenco-integration techniqueto determine if a long run relationship exists between capital market and employment generation in Nigeria. The variables introduced are unemployment rate, market capitalisation and Gross domestic product (GDP). Findings show that a long run relationship exists between the capital market and employment generation in Nigeria. This study suggests improvement in the declining market capitalisation by encouraging more foreign investors to participate in the market.