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The Impact Of Unemployment On Economic Growth In Nigeria. (1982-2010)
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The International Labour Organization (I.L.O) defines unemployment as
the proportion of the labour force which was available for work but did
not work for at least one hour in the week preceding the survey period.
National Bureau of Statistics (NBS) Nigeria defines unemployment as the
proportion of the labour force that is available for work but did not
work for at least 37hours in the week preceding the survey period.
Unemployment, according to Lipsey (1963:456) brings out economic waste
and cause human suffering.
Unemployment is as a result of the
inability to develop and utilize the nation’s manpower sources
effectively, especially in the rural sector says Dayomi, 1992; Osinubi,
2006. The socio-economic effect of unemployment include fall in national
output, increase rural-urban migration, waste of human resources, high
rate of dependency ratio, poverty depression, frustration, all sorts of
immoral acts and criminal behavior like robbery, prostitution, etc. The
socio-effect of unemployment brings to limelight the need to proffer
possible solutions to salvage our nation Nigeria. In Nigeria, the
ability and willingness to work is not sufficient. It is necessary for
the employed, to be registered with an employment, bureau in order to be
recognized as unemployed. The unregistered unemployment are part of the
labour force and are therefore technically unemployed. Unemployment
data are obtained in Nigeria through labour force sample survey.
The
International Labour Organization (I.L.O), realize the short-comings of
the labour survey as it effects developing economies such a Nigeria,
with a large informal sector, has encouraged a review of the methodology
to incorporate further disaggregation of respondents’ responses to
bring out the true rate of unemployment. In order to establish the type
of unemployment existing in an economy, economists have classified
unemployment as ‘frictional, seasonal, structural or cyclical
unemployment’. Frictional unemployment is when people are temporarily
out of work because they are changing jobs. This is unavoidable in an
economy in which both the labour force and the jobs on offer are
continually changing. Seasonal unemployment is said to occur in a
situation in which people are laid off seasonally, due to the nature of
the jobs they do, e.g. agriculture, workers in developing countries may
be laid off during the growing season. Structural unemployment is the
unemployment that exist when an economy is in more declining industries
is falling. It is as a result of movement in the natural employment rate
itself, which can result from changes in labour market institutions,
demographic shift, etc, this situation is brought about by economic
variables, such a the level of aggregate demand and the actual or
expected real wage rate. Cyclical unemployment is as a result of
fluctuations around the natural employment, which can be attributed to
changes in aggregate demand.
The main cause of unemployment in
Nigeria is the outburst of population growth in the country compared to
technological growth and development in the country. The economic growth
in Nigeria has been stunted by the years of corruption, civil war,
military rule and mismanagement. It is suggested that the main reason
there is such an extent of unemployment in Nigeria is the under
utilization of the resources available. Nigeria has a number of
abundance of diverse human and natural resources but the inefficient
utilization of these resources in order to gain the maximum economic
benefits has led to the vast amount of unemployed citizens. This
unemployment has affected the country of Nigeria and its economic
climate in a number of ways. Economic: The reduction in employment has
left citizens without purchasing power. This means that there is less of
a demand for product and services and in turn, the production and
economic growth has been hindered. Social: Within the social effect of
unemployment in Nigeria is an increase in the rate of crime. Recent
graduates have accounted for some of the largest percentages of
unemployed people who have turned to a life in crime. Many believe that
economic growth is not going to be the solution for the unemployment in
Nigeria. Unemployment should be addressed by providing the necessary
training for people to gain the right skill for work. Also, the concept
of having a prosperous life is something that should be worked towards
and seen as a positive thing. Experts have recommended a number of ways
that Nigerians can try to decrease the rate of unemployment.
Lack of
information also causes unemployment which is a source of unemployment
that cannot be overlooked. If people don’t know that Jobs are there,
then they will not take them, the obvious solution for this problem is
to be able make information available to the people who need it.
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ABSRACT - [ Total Page(s): 1 ]The term ‘unemployment’ can be defined as an economic condition marked by the fact that individuals actively seeking for job remain unemployed. Unemployment is very common in under-developed nations like Nigeria and it affects graduates of various institutions of learning. The study was designed to investigate the impact of unemployment on economic growth in Nigeria for the period of 29 years (1982 – 2010). The focus of the research was to determine the cause and impacts of u ... Continue reading---
