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Solving Unemployment And Youth Entrepreneurship In Nigeria
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CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Unemployment, both of the educated and the uneducated manpower, has become one of the most topical and thorny issues in contemporary Nigeria. The unemployment situation has changed from previous position marked by prolonged period of unemployment and misemployment, to one in which graduates of tertiary institutions have to normally wait for a long time before getting a first job – if at all. At the beginning of this millennium, employment crisis have emerged as the most challenging issues confronting many world economies. The continuing global economic slowdown and uncertain economic prospects have resulted in a grim global economic landscape. This plunged many economies into deep recession, the ripple effects of which have affected the job markets. These effects are more pronounced in the developing and underdeveloped countries of the world, with increased unemployment being the outcome (Hassan, 2013).
Attainment of full employment mostly in the developing economies, it is agreed can reduce poverty and foster the growth of their economies. The idea is based on the linkage between income and poverty (Boateng cited in Adawo, Essien and Ekpo, 2012). Unemployment, it is also noted, generates low income or no income and therefore results in low or poor living standard. Unemployment represents wasted resources (Mankiw cited in Adawo et al., 2012). Unemployed labor has the potential to contribute to national income but are not doing so because they are jobless. Reduction of joblessness is a major concern of every responsible government all over the globe. However, given free market economies, zero unemployment cannot be guaranteed. Friction in the labor market will always be there.
Nigeria has one of the highest levels of youth unemployment in the world with 60-65% (Federal Ministry of Labour and Productivity Report, 2008 cited in Hassan, 2013). These are mostly young adults that have graduated from universities and polytechnics or institutions of higher learning. Available estimate shows that about 1.6 million persons, mostly young adult, graduate annually. In addition to this number, about 3.8 million others are certificate carrying youths that have no formal education, or have completed primary or secondary school, or dropped out from tertiary institutions all of which are annually poured into an already saturated labour market (Federal Ministry of Labour and Productivity Report, 2008 cited in Hassan, 2013).
Many of the youths are not productive and have actually been reduced to petty traders and smugglers; in many instances, the growth in the phenomenon of it is observable that unemployment rate in Nigeria has reached unacceptable dimension. Indeed, the labor market in Nigeria is dangerously close to saturation. Indeed, Ekpo (cited in Adawo et al., 2012) supports the fact that Nigeria’s unemployment situation is unacceptable.
Unemployment occurs when people are without jobs and they have actively sought for job within the past four weeks (Wikipedia, 2010). Unemployment refers to a situation where people who are willing and capable of working are unable to find suitable paid employment (Fajana cited in Emeh et al., 2012). Unemployment has been defined as a situation in which people who are willing to work at the prevailing wage rate are unable to find jobs. It is one of the macro-economic problems which every responsible government is expected to monitor and regulate. The higher the unemployment rate in an economy the higher would be the poverty level and associated welfare challenges.
Unemployment is one of the developmental problems that face every developing economy in the 21st century (Patterson et al cited in Emeh, et al., 2012), and Nigeria is not exempted. Its impact is felt more by the youths, leading to youth unemployment. trafficking in persons and child labor can be attributed to poverty and joblessness among the youths. For a few who are able to find their way out of the country to work in other countries, their departure has contributed to depleting the quality of human capital resources in the country. It is against this background that this study is inspired to investigate the causes, implications and most importantly “Solving Unemployment Problems in Nigeria†with a special reference to Lagos State.
CHAPTER ONE -- [Total Page(s) 3]
Page 1 of 3
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