1.1 Background of the Study
Unemployment is generally seen as a
macro-economic problem as well as socio-economic problem .Unemployment
arises as a result of insufficient and non-availability of jobs to
correspond with the growing population, even those who are employed
sometimes live with the fear of being unemployed due to job insecurity
and retrenchment of workers. There is employment of factors of
production if they are engaged in production. The term unemployment
could be used in relation to any of the factors of production which is
idle and not being utilized properly for production. However, with
reference to labour, there is unemployment if it is not possible to find
jobs for all those who are eligible and able to work. Labour is said to
be underemployed if it is working below capacity or not fully utilized
in production (R.A.I Anyawuocha 1993)
Unemployment can either be voluntary or
involuntary. Voluntary in the sense that one chooses not to work because
he or she has means of support other than employment. Example is an
idle rich man. On the other hand, involuntary unemployment exist when
persons who are eligible and willing to work at the prevailing rate of
pay are unable to find work. (Anyanwa 1995).
According to the central bank of Nigeria
(2004), unemployment rose to 30% during 2004 statistics on unemployment
rate. Unemployment has been seen as a world-wide economic problem and
has been categorized as one of the serious impediments to social
progress. Apart from representing a huge waste of a country’s manpower
resources, it generates welfare loss in terms of lower output thereby
leading to lower income and wellbeing of the people (Akinboyo, 1987, and
Raheem 1993). Unemployment is a very serious issue in Africa
(Vandemortele, 1991, and Rama 1998), and particularly in Nigeria
(Oladeyi, 1994 and Umo, 1996). The need to avert the negative effect of
unemployment has made the tackling of unemployment problems to feature
very prominently in the development objectives of many developing
In the study of unemployment in Africa
Okonkwo (2005) identified three (3) cause of unemployment, the
educational system, the choice of technology which can either be labour
intensive or capital intensive and inadequate attention to agriculture.
The use of machines to replace work done by labour and computerization
has contributed to these social problems in the sense that what for
example forty (40) men can do manually a machine will only need like
five (5) men. Therefore, the remaining thirty five (35) are unemployed.
More so, lack of enough education and skill to have access to credit and
One particular feature of unemployment
in Nigeria is that it was more endemic in the early 1980?s than any
other period. According to Udabah (1999:62), the major factor
contributing to low standard of living in underdeveloped countries in
their relative inadequate or inefficient utilization of labour in
comparism with advanced nations. Unemployment rate is measured by the
proportion of the labour force that is unemployed divided by the total
number of the labour force. The total labour force was projected at
61,249,485 in 2007 indicating an increase of 3.9%. Total employment in
2007 stood at 52,326,923 compared with 50,886,836 in 2006. This
represents an annual increase of 2.8%. The labour force consists of the
number of people ageing 18 and over who are employed (that is, those who
currently have jobs) and unemployed (those who do not have jobs but who
are actively looking for work).Individuals who do not fall into either
of these group such as retired people and discouraged workers are not
included in the calculation of the labour force.
The international labour force
organization (ILO) defines unemployment as the proportion of the labour
force which was available for but did not work for at least one hour in
the week preceding the survey period. National Bureau of statistics
(N.B.S). Nigeria defines unemployment as the proportion of the labour
force that is available for work but did not work for at least thirty
nine (39) hours in the week preceding survey period.
Unemployment according to lipsey
(1963:456) brings about economic waste and cause human suffering.
According to Fadayomi, 1992, Osinubi, 2006, unemployment is as a result
of the inability to develop and utilize the nations manpower resources
effectively especially in the rural sector.
The socio-economic effect of
unemployment includes: fall in national output, increase in rural-urban
migration, waste of human resources, high rate of dependency ratio,
poverty, depression, frustration, all sorts of immoral acts and criminal
behaviour e.g prostitution, armed robbery e.t.c. The social effect of
unemployment brings to light the need to proffer possible solution to
salvage our nation Nigeria
1.2 Statement of the Problem
Working with the data from the national
bureau of statistics, it indicates that the national unemployment rate
in the first quarter of 2007 was 14.6%, compared with 13.7% in 2006. The
urban and rural rates were 14.4% and 15.0% respectively compared with
10.2% and 14.8% in 2006. Further analysis showed that the distribution
of unemployment ranged from 14.1%vfor the age group of 25-44 to 23.5%
for the age group of 65-70. Desegregation according to geopolitical
zones showed a very uneven distribution with the south-south zone having
the highest unemployment rate of 29.5% and south-west at the rear with
8.5%. Between these extremes were the north-east with 18.5%, south-east
18.1%, north central 15.8% and north-west 14.2%.
It is based on the increasing problem
posed by unemployment on individuals and the nation at large that
government has been embarking on various policies to control and reduce
unemployment but yet has not yielded any positive result, rather it
seems to be escalating. Drastic measures must be taken by government to
curtail this problem of unemployment. The statement of problem is based
on the economic, social and political effects of unemployment
1.3 Purpose 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
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
1.4 Research Questions
i. Does unemployment has effects on the government of Nigeria?
ii. Is there any effect on the National outputs and general standard of living of Nigerian citizens?
- Is there any social implications in the lives of the populace?
- Does unemployment has effect on the political office holders in Nigeria?
- Does unemployment hinder the growth and development of Nigeria economy?
1.5 Statement of Hypotheses
In the above questions, the hypotheses which will be suitably used in the course of this study include;
Ho: Unemployment do not have any effect on the government of Nigeria
H1: Unemployment has effect on the government of Nigeria
Ho: Unemployment do not have effect in the National Output and general standard of living of the citizen
H1: Unemployment have effect in the National Output and general standard of living of the citizen
Ho: Unemployment do not have any social implication in the life of the populace
H1: Unemployment has social implication in the life of the populace
1.6 Significance of the Study
The benefits of this study lies on the government and the labour of Nigeria economy.
The Government: the
government of Nigeria will attract (Foreign direct Investors) FDI which
will establish a transparent legal framework that does not discriminate
between local and foreign investors and effective implementation of tax
incentives will be generated from the citizens which we therefore
increase the per capital incme of the nation.
The Labour: Anyone who
wants a job, and his available for work currently has the best job of
his or her choice for which he or she is capable.
1.7 Delimitation of the Study
During the course of this study, there
was little, more or less delimitation on the side of the questionnaire
respondent of which not all the questionnaire was returned and on the
part of the audience who were interviewed, they find it difficult to
create time for the researchers.
1.8 Definition of Terms
Unemployment: This is
the non utilization of labour resources as a result of which the actual
output of the economy is below its potential G.N.P
Economy: this refers to the relationship between production, trade and the supply of money in a particular country or region.
Effects: Changes that cause results
Labour: is the human factor of production that is taken to mean the supply of human efforts for the main sum of wages and salaries