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CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
It becomes obvious that unemployment in Nigeria has attained unacceptable level. The labour market in Nigeria according to Central Bank of Nigeria CBN (2012) is dangerously close to saturation. Ekpo (2011) in Adawo, Essien and Joel (2012) supports the fact that Nigeria unemployment situation is unacceptable. A lot of circumstances engender this social evil and menace and which include among others rapidly growing urban labour force arising from rural –urban migration, rapid population growth, outdated school curricula and lack of employable skills, rapid expansion of the education system which directly leads to increase in the supply of education manpower above the corresponding demand for them ,no vibrant manufacturing sector which has the capacity to absorb unemployed youths in Nigeria, corruption which has become incurable cancer in the social economic structure of the nation. The cost of unemployment had impacted the economy negatively that crime had almost turned to culture. This can be attested to by the cost implications of unemployment on the loss of life and property, vandalisation of the nation’s infrastructure e.g oil pipelines, PHCN equipment, bombing, kidnapping, international negative image of the nation. Crime is an offence against the value system of a society. The cost implications of crime vary among the various segments of the population and touch almost everyone by some degrees and in general, but as economic growth and development of countries increase, it would be expected that crime rate reduces. The various cost of crime to victims and society include loss of income, property and loss in community productivity (Odumosu, 2009, Akpotu and Jike, 2008, Egunjobi, 2007) in Douglason (2009). Upon all the aforementioned assertions, the research work seeks to outline and give suggestions that can reduce the sting of unemployment on the nation’s economy.
Unemployment is a hot issue in Nigeria, and many people are frustrated with widespread joblessness. Unemployment in Nigeria is like a disease that the cure is not yet discovered. According to official statistics, 24% of Nigerians are unemployed. These numbers are worse for young people. Official Nigerian statistics say 38% of those under 24 are unemployed, but the World Bank estimates this number to be closer to 80%. In March 2014, 16 people were killed in stampedes when 500,000 desperate job-seekers rushed to apply for under 5,000 vacancies at the Nigeria Immigration Service.
Students at tertiary educational institutions often graduate into joblessness and low morale. There is a great challenge in Nigeria education. Many Nigerian graduates did not learn good skills during their studies. They were busy reading only textbooks without knowing the applications of what they read. They apply for jobs for which they aren't hired because they lack skills. Graduates often must stay in their parents’ homes for a long time, with mounting frustration and pessimism. This negativity is one of the major root causes of crime among young people in Nigeria, as they turn to unscrupulous activities because there is nothing else to occupy their time or generate income. Each year, 200,000 students graduate from universities, but many fail to find a job, and some will seek out less-than-honorable means of supporting themselves.
The International Labor Organization (ILO) defines the unemployed as numbers of the economically active population who are without work but available for and seeking work, including people who have lost their jobs and those who have voluntarily left work (World Bank, 2008). Also, for Adebayo (2009) this exists when members of the labour force wish to work but cannot get jobs. Governments at all level should strive to create viable structure which will encourage the youths to think rationally towards job creation rather than job pilferage and almost unending unemployment proliferation in vogue in Africa. Youth unemployment, therefore, could be described as the conglomerate of youths with diverse background, willing and able to work, but cannot find any; or cannot find the type of job that they are trained to do, and which they will be proud to do as their area of expertise (Madaki, 2008). When the supply of labour outstrips the demand for labour, it causes joblessness and unemployment. Given the lack of sufficient employment opportunities in the formal sector, young people may be forced to engage in casual work and other unorthodox livelihood sources, thus leading to underemployment (Echebiri, 2005; Gibb & George, 2006; Onah, 2006).
Good Governance has to do with the perception of the higher number of the citizens on the general performance of their leaders, from local, state and federal levels; whether their socio-economic policies have affected their lives positively or negatively. Usually, the concept of good governance should provide structures where the youth segment of the society are gainfully employed either in the public or private sector of the economy through direct entrepreneurial activities. It also connotes a system where electoral processes give room for credible leaders to emerge, those who must be accountable to the people and whom the people can collectively say no to any of his or her unfavourable social and economic policies at all times.
Unemployment is a global trend, but it occurs mostly in developing countries of the world, with attendant social, economic, political, and psychological consequences. Thus, massive youth unemployment in any country is an indication of far more complex problems. The ILO (2007) report showed that the proportions of world unemployment are steadily increasing and that the number of those without jobs remained at an all time high of more than 195 million, or 6.3 percent, in 2007. For instance, during that period (2007), the Middle East and North Africa were the regions with the highest unemployment rate in the world at 12.2 percent, followed by Sub-Saharan Africa at nearly 10 percent. East Asia's unemployment rate of 3.6 percent remained the lowest. The report affirmed that population growth, especially in South Asia, the Middle East, and North Africa, and Sub-Saharan Africa, was putting a lot of pressure on job creation. The report concluded that half of all workers in the world - some 1.4 billion working poor - lived in families that survived on less than US $2 a day per person (Abisoye, 2002). These people worked in the vast informal sector - from farms to fishing, from agriculture to urban alleyways - without benefits, social security, or healthcare. Some 550 million working poor lived on US $1 or less per day. In absolute terms, it is estimated that there are about 122 million youths on the African continent (Echebiri; 2005; Chigunta, 2002). Therefore, projections of the population growth into the 21st century indicated that the proportion of youths, in relation to the overall population, will continue to grow. Todaro (2007 ) pointed out that the high rate of unemployment is a result of continuous transfer of economic activities, especially the youths from rural to urban areas.
1.2 STATEMENT OF THE PROBLEM
Unemployment in Nigeria is alarming. Its measurement by statistical authorities does not pose red alert. It has been discovered that the observed situation of unemployment is more serious than what official statistics want us to believe.
The unemployed youths have become political thugs and blood-thirsty hoodlums at the disposal of the politicians. The point here is that when large numbers of citizens are unemployed, their quest to survive may make them to become willing tools in the hands of maverick and disgruntled politicians who may want to use them for anti-social and clandestine political activities.
Due attention will be given to the major factors responsible for the unemployment in the country and recommendations would be proffered designed to solve the problems.
1.3 Research Questions
1. What are the causes of unemployment in Nigeria?
2. What are the effects of unemployment on youths?
3. What strategies could be adopted to minimize the problems of unemployment in the country?
1.4 Objectives of the Study
As a result of unemployment experienced in Nigeria, and the fact that these problems have exert direct bearing on the pursuit of security and development, yet lack adequate policy response, constitute the basic concern of this effort.
The preoccupation therefore, is to critically examine the challenges facing the rate of unemployment in Nigeria with particular reference to Central Bank of Nigeria. An attempt shall be spelled out to establish the solutions meant to solve the problems.
1.5 Significance of the Study
The research intends to engender further academic inquests, probes, debates, diagnosis, incisions, autopsies etc, with a view to proffering medication. It is my hope that all efforts will serve as a vehicle for provoking further incisions into the causes, impacts and recommendations of unemployment in Nigeria, Africa and globally. It is within this purview that government agencies, researchers, policy makers, students among other would benefit from this research.
1.6 Scope and Limitation
The research will be limited to Nigeria, especially in areas where the unemployment is glaring. Despite the demands faced by the researcher during the administration and collection of the instrument, the researcher took much care on the negative effect that would have constituted to the validity of the research during the analysis of the data collected. Lack of time and financial constraints were the problems faced.
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