Effect of Unemployment on Nigeria Economy
CHAPTER ONE
Objecctive of the Study
The economist are unanimous in their acceptance of the fact that the phenomenon of human resources unemployment is a problem that deserves the attention of every modern government.
In this sub section, I will give the reasons why unemployment has effects on the Nigeria economy. Unemployment has effects in the following ways;
- effects on national outputs and general standard of living
- effects on government
- Effects of social implication
- Implication for political office holders
CHAPTER TWO
LITERATURE REVIEW
Introduction
This chapter consists of a review of chosen theoretical framework, concepts of unemployment, empirical literature and other related studies on youth unemployment identified with the study. The review of the subject matter provides a foundation for subsequent discussions during data analysis.
Theoretical Framework
This section focuses on two main theories of unemployment, Keynesian and Marxist theories of unemployment to explain the unemployment situation in Nigeria.
The Keynesian unemployment theory
Keynesian hypothesis of joblessness is additionally alluded to as the repetitive or insufficient request joblessness. This hypothesis suggested that joblessness emerges when there is declining total request in the economy to give employment to each capable, qualified and willing person who need to work. In perspective of this financial hypothesis, when there is decline in aggregate demand, there is associated weakening in manufacturing, which require the need to diminish the quantity of staff.
This study therefore presumes that the Nigeriaian economy has not been growing fast enough to absorb the teeming unemployed youth because the manufacturing sector is weak. The weakness of the manufacturing sector is as a result of weak macroeconomic fundamentals including low aggregate demand. The theory is therefore appropriate for the study because it is able to explain the fundamental reasons for general unemployment.
Marxist theory of unemployment
Marxist hypothesis of joblessness was propounded by a well-known researcher, Karl Marx in 1863. He explained in the theory how industrialist method of job creation includes few labourers while keeping the rest as an armed force of jobless homeless people (Marx, 1863). He considered that joblessness is essential inside the unequal industrialist framework and irregular disasters of mass joblessness are to be expected. Free enterprise, as indicated by Marx, unduly and falsely promotes joblessness. Section of industrial workers get scarred when remuneration had to be increased which could eventually lead to job cuts in the free market system. In the view of Marx, the main way to create jobs is to prevent the free market system from working to promote wage agitations.
This study position, considers wage agitations in the free market economy such as the Nigeriaian economy to be the main reason why some enterprises do not employ so many people.
Concept of unemployment
Unemployment is one of the most serious problems facing the African continent (Frimpong, 2012) and Nigeria is no exception. Accordingly, the unemployment rate in Nigeria has remained generally low over the years ranging from 2.8 per cent in 1984 to 10.4 per cent in
2010 based on population and housing census data and within range of 2.3 per cent in 1991/92 and 3.1 per cent in 2005/06 based on Nigeria Living Standards Survey (GLSS) dataset (Baah- Boateng, 2013).
CHAPTER THREE
RESEARCH METHODOLOGY
Introduction
In this chapter, we would describe how the study was carried out.
Research design
Research design is a detailed outline of how an investigation took place. It entails how data is collected, the data collection tools used and the mode of analyzing data collected (Cooper & Schindler (2006). This study used a descriptive research design. Gill and Johnson (2002) state that a descriptive design looks at particular characteristics of a specific population of subjects, at a particular point in time or at different times for comparative purposes. The choice of a survey design for this study was deemed appropriate as Mugenda and Mugenda (2003) attest that it enables the researcher to determine the nature of prevailing conditions without manipulating the subjects.
Further, the survey method was useful in describing the characteristics of a large population and no other method of observation can provide this general capability. On the other hand, since the time duration to complete the research project was limited, the survey method was a cost effective way to gather information from a large group of people within a short time. The survey design made feasible very large samples and thus making the results statistically significant even when analyzing multiple variables. It allowed for many questions to be asked about a given topic giving considerable flexibility to the analysis. Usually, high reliability is easy to obtain by presenting all subjects with a standardized stimulus; observer subjectivity is greatly eliminated. Cooper and Schindler (2006) assert that the results of a survey can be easily generalized to the entire population..
Research settings
This study was carried out in GSS Lugbe in AMAC of Abuja Nigeria.
Sources of Data
The data for this study were generated from two main sources; Primary sources and secondary sources. The primary sources include questionnaire, interviews and observation. The secondary sources include journals, bulletins, textbooks and the internet.
Population of the study
A study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitute of individuals or elements that are homogeneous in description (Prince Udoyen: 2019). The population of the study were all civil servants in Ifako-Ijaiye Local government.
Sample size determination
A study sample is simply a systematic selected part of a population that infers its result on the population. In essence, it is that part of a whole that represents the whole and its members share characteristics in like similitude (Udoyen: 2019). In this study, A total of 120 respondents were purposively selected by the researcher consisting of civil servants in Ifako-Ijaiye Local government.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of hundred and twenty (120) questionnaires were administered to respondents of which only 100 were returned. The analysis of this study is based on the number returned.
From the responses obtained as expressed in the table above, 78 respondents constituting 78% said yes. While the remain 22 respondents constituting 22% were undecided. There was no record for no.
CHAPTER FIVE
CONCLUSIONS AND RECOMMENDATIONS
conclusion
The low level of education that was found to be the reason of youth unemployment is in line with the literature. This is because certificate first has become a major yardstick for employment in the Nigerian labour market. Therefore, the study concludes that low level of education is a potential reason for youth unemployment. Relating to this is the finding that lack of vocational skills could also be a reason for youth unemployment. This is probably because the youth who have vocational skills could establish their own enterprise. Therefore, the study concludes that acquisition of vocational skills could reduce youth unemployment.
Again, rural-urban drift in Nigeria usually involve the youth who have run away to the urban areas in search of non-existing jobs. As this continuous, the number of youth unemployed will be escalating. The study concludes that rural-urban migration is a potential reason for the increases in the incidence of youth unemployment in the Ifako-Ijaiye Local government.
That unemployment render the youth time and space to engage themselves in violence related activities sounds logical. This is because as the youth idle around they tend to be lured into violent and crime related activities. The reason could simply be that such engagement would could be monetary rewarding. Therefore, the study concludes that youth unemployment is a potential cause of crime related violence in the Ifako-Ijaiye Local government. Relating to the above is the finding by that study that the unemployed youth are mostly behind the political party agitations in the communities. Most of this youth do not have relatives around who could who give them food. Therefore, any job that comes their way which could give them money is acceptable. However, as they tend to engage themselves in such activities, they put everybody in the community at risk. The study therefore concludes that anti-social activities of the unemployed youth is a serious security concern.
Recommendations
Based on the conclusions made on the findings of the study, the following policy recommendations are suggested:
Government of Nigeria, the development partners as well as all stakeholders of education should endeavour to extend education to all Nigerians. The existing policies such as free compulsory universal basic education (FCUBE) should be strengthened to effectively achieve its objectives. Parents who refuse to send their children to school should be sanctioned to serve as deterrent to others.
There must be proper funding of tertiary institutions. In this regard, every government must equip the institutions of learning located in every part of the country whether technical or vocational, with the necessary equipment that will make the youths to acquire the knowledge that they need which will keep them employed even when any company does not employ them.
Information marketing is an important skill that can transport the Nigerian unemployed youth from rag to riches. The most important thing about information marketing is that it does not just secure employment for the youths but as well develop people who are into it on various areas. Most of the youths who are into information marketing today did not pay anybody to acquire the skill but learnt it through research work on the internet. This has been lasting solution to youth unemployment in neighbouring states.
Skill acquisition is important, helpful, lucrative, and promoting. Skill is an important way of investing in the youths. The skill youths acquire will help them to be publicly employed and also self-employment. Both government and non-governmental organizations are expected to contribute their quota in helping the youths to acquire skills. They can offer that in the form of scholarships to the youths. Practicing this will help the youths to earn money for their living and train others. Following this trend will help in the reduction of the percentage of the world unemployed youths.
A lasting solution to youth unemployment is devising means to stop corruption which in turn will prevent the governing body from money laundering. Strong anti-corruption bodies should be established and they are to be independent of government. Punishing any government official caught in corrupt practice is an important tool to be used to create employment for the Nigerian youths. Irrespective of the class of offence the official committed and that is stamped corruption, adequate punishment is to be exercised on the offender. The fight on corruption will keep more funds in any country and the fund used to generate employment for the youths.
Rural-urban migration in Nigeria has been discussed for many years in the Nigeriaian media. In the 1970s, a policy was put together to ensure rural development and transformation. That the youth are still migrating to the urban centres means all is still not well with our rural areas. This study suggests that Government should revisit this policy to put in place proper mechanisms to develop the rural communities in Nigeria. One thing that is lacking in the rural communities for which reason the youth move to the urban areas is unemployment. The study therefore suggests that one district one factory policy could be used to initiate jobs in the rural communities in order to prevent the youth from moving to the urban areas.
Again, the police should be equipped to prevent all youth related crimes and violence. Community police could be relied on to check the excesses of the youth. Again, the rich, chiefs and politicians who use the youth to perpetrate violence should be sanctioned severely to deter others.
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