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CHAPTER ONE
INTRODUCTION
1.1 Background of the study
One of the greatest challenges facing the Nigeria economy is unemployment which has maintained a rising trend over the years. The total labour force in Nigeria is made up of all persons aged 15-64 years excluding students, home keepers, retired persons and stay-at-home to work or not interested. Unemployment in Nigeria is defined as the proportion of labour force that was available for work but did not work in the week preceding the survey period for at least 39hours. Official figures from the Bureau of Statistics puts the figure of unemployed at 19.70 per cent, about 30 million, but this figure still did not include about 40 million other Nigerian youths captured in World Bank statistics in 2009. By implication, it means that if Nigeria’s population is 140 million, then 50 percent of Nigerians are unemployed. Viewing this from the perceptive of the recent events in the Middle East where unemployment and poverty among others played a key role in the uprising, one can only conclude that Nigeria’s unemployment poses a threat to its development, security and peaceful co-existence, being that Nigeria is made up of diverse entities from different cultural and religious backgrounds most of whom have shown differences in political, cultural and religious understanding and accommodation emanating from concerns of abuse of power, resource allocation, nepotism, negligence and corruption among others.According to Bello (2003) from time immemorial, the subject of unemployment has always been an issue of great concern to the economists, policy makers and economic managers alike; giving the devastating effect of this phenomenon on individuals, the society and the economy at large. The classical school of thought that provided the earliest thinking on economic issues did not fail
1.2 STATEMENT OF THE PROBLEM
Anyaele (1995:214) stated that the problem has become continually without solution being in sight it has constituted itself into one of the worst enemies of the populace in this part of the world. That the problem unemployment has been exacerbated by the previous and retrenchments unbridle rural urban migrate. Etc.Unemployment is a great problem associated with both rural and urban communities of the Nigeria economy it results to the following problems to Nigeria.
A) Threat to peace: The unemployed Constituted available book for political troubles shooters in a Country.
B) Escalation of Crime Rate: An idle mind they say is the devils workshop, and as a result of this many unemployed youths and able bodies men and women engages themselves in crime such as armed robbery, prostitution, etc in order to earn living.
C) It causes migration: this is to move from one place to go and live or work in another place. This can be rural urban or from one Country to another which creates vacuum in a nation march to economic and social development.
D) Waste of Manpower: Unemployment especially that of graduates waste the much needed manpower which delays the economic development of the nation Nigeria.
E) Increase in dependants: The unemployment people increase the number of dependants and contribute in sapling the income of their families instead of contributing to them.
F) Reduction in Investment: the money spent in educating the unemployed and the once spent in them as depredates should have been invested in one
1.3 OBJECTIVE OF THE STUDY
The purpose of this study is contribute in any meaningful way to the idea of how the growing rate of unemployment among young people in Our Society can be deal with, so that its ugly effects can be reduced at least to minimal. The problem caused by unemployment in Our Society is not far-fetched.
1. To evaluate the nature of relationship between unemployment and economic growth.
2. To determine the effect of unemployment in the Nigeria Economy.
3. To offer some recommendations based on the findings of the study.
1.4 RESEARCH HYPOTHESES
For the successful completion of the study, the following research hypotheses were formulated by the researcher;
H0: There is no relationship between unemployment and economic growth.
H1: There isrelationship between unemployment and economic growth..
H02:there is no effect of unemployment in the Nigeria Economy
H2:there is effect of unemployment in the Nigeria Economy
1.5 SIGNIFICANCE OF THE STUDY
Their status in the society has continued to dwindle.
Today, it is sheer mirage for fresh graduates to dream of the good things of life. They are made to understand and accept that the graduates, unemployment should be seen as a passing phase in the history of the nation. It is very doubtful if the much desired change in the near future will bring us anything.Therefore, this study is aimed at showing how these effects of unemployment have on economic growth in Nigeria Economy.It is desirable to create a new forum in which the government plays a dominant role and actively promotes private enterprises, establishes new enterprises with a centrally directed mobilization of resources towards the definite objectives of solving these problems.
1.6 SCOPE AND LIMITATION OF THE STUDY
The scope of the study covers growth of Nigeria economy and unemployment. The researcher encounters some constrain which limited the scope of the study;
a) AVAILABILITY OF RESEARCH MATERIAL: The research material available to the researcher is insufficient, thereby limiting the study
b) TIME: The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.
c) Organizational privacy: Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities.
1.7 DEFINITION OF TERMS
In this aspect we are concerned with the types of unemployment in Nigeria economy, they are as follows: -
a) Frictional Unemployment: -
This type of unemployment arises when people leave their present job with hope of getting another one or a new one, but fails at that time. It may or may not be a temporary unemployment depending on the prevailing economic situation.
Therefore frictional unemployment is the period between the worker left his former work and the time of getting a new job or work.
b) Seasonal Unemployment
This type of unemployment is caused by seasonal change that affect some types of work, for example workers that work in road construction companies remain unemployed during raining season.
On the same hand farmers stay idle during the time in between harvesting and planting periods.
c) Search Unemployment
This type of unemployment occurs when some people turn down offer of work in search of better-paid employment. How long this search will last depend on the prevailing economic situation in the Country.
d) Structural Unemployment:
Unemployment is as a result of slight change in the Industries structure of a country, workers will be retrenched as a result. This is causal by economic recession and it happened in Nigeria in 1984 when firms folded up as a result of this.
e) Voluntary Unemployment
This type of unemployment undecorated occurs when some people refuse to take up any paid employment. That is to say that they voluntarily decide not take up any paid employment for example some husband may order their wives not to do any type of work but to stay at home as full timehouse wives.
f) Deficient Demand (Cyclical) unemployment:
This type of unemployment occurs when there is decrease in the quantity of goods demanded or there is over production, which result to fall in prices. Industries will be affected and the may cause lay off of workers of the Industries that are affected.
g) Under Employment: -
This type of employment result when a workers potential is underutilized or when a worker is paid less than the effort puts on the job. E.g. A graduate doing the work of a cleaner
1.8 ORGANIZATION OF THE STUDY
This research work is organized in five chapters, for easy understanding, as follows
Chapter one is concern with the introduction, which consist of the (overview, of the study), historical background, statement of problem, objectives of the study, research hypotheses, significance of the study, scope and limitation of the study, definition of terms and historical background of the study. Chapter two highlights the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding. Chapter five gives summary, conclusion, and recommendations made of the study
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