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Chapter one


1.1 Background of the Study.

Unemployment is often regarded as both a macroeconomic and a socioeconomic problem.Unemployment occurs as a result of a lack of jobs to match the rising population; even those who are working may fear getting laid off due to job instability and worker retrenchment.

Factors of production are employed when they are engaged in production. The term unemployment could refer to any of the factors of production that are idle and not being used properly for production.

In terms of labour, unemployment occurs when it is impossible to find jobs for all those who are qualified and willing to work. R.A.I Anyawuocha (1993) defines underemployment as working below capacity or not completely utilised in output.

Unemployment can be voluntary or involuntary. Voluntary in the sense that someone chooses not to work since they have alternative sources of income. Consider a lazy rich man.

On the other hand, involuntary unemployment occurs when people who are qualified and eager to work at the current wage rate are unable to find work. (Anyanwa, 1995).

According to Nigeria’s central bank (2004), unemployment increased to 30% in 2004 unemployment data. Unemployment has been identified as a global economic concern and one of the major barriers to social progress.

Aside from being a major waste of a country’s labour resources, it causes welfare loss in the form of lower productivity, which leads to lower income and wellbeing for the population (Akinboyo, 1987; Raheem 1993).

Unemployment is a major concern in Africa (Vandemortele, 1991; Rama, 1998), particularly in Nigeria (Oladeyi, 1994; Umo, 1996). Because of the necessity to avoid the negative effects of unemployment, many developing countries’ development objectives also include addressing unemployment issues.

Okonkwo (2005) listed three (3) causes of unemployment in Africa: the educational system, the choice of technology (labour or capital intensive), and insufficient attention to agriculture.

The employment of machines to replace labor-intensive tasks, as well as computerization, have contributed to these social issues in the sense that what forty (40) men can perform physically, a machine will only require five (5) persons.

As a result, the remaining thirty-five (35) are unemployed. Furthermore, there is a lack of adequate knowledge and expertise to have access to finance and capital.

Unemployment was most prevalent in Nigeria during the early 1980s. According to Udabah (1999:62), the key factor leading to low living standards in developing countries is the relative inefficiency or insufficient utilisation of labour in comparison to advanced nations.

The unemployment rate is calculated as the fraction of the labour force that is jobless divided by the total labour force. In 2007, the total work force was anticipated to be 61,249,485, representing a 3.9% growth. Total employment in 2007 was 52,326,923, compared to 50,886,836 in 2006.

This is a 2.8% annual growth. The labour force is made up of people aged 18 and up who are employed (those who currently have jobs) and jobless (those who do not have jobs but are actively looking for them).

Individuals who do not fit into either of these categories, such as retirees or discouraged workers, are excluded from the labour force estimate.

The International labour Organisation (ILO) defines unemployment as the percentage of the labour force who was available but did not work for at least one hour in the week before the survey period. National Bureau of Statistics (NBS).

Unemployment in Nigeria is defined as the fraction of the labour force that is available for work but has not worked for at least thirty-nine (39) hours in the week before the survey period.

According to Lipsey (1963:456), unemployment wastes economic resources and causes human misery. According to Fadayomi (1992) and Osinubi (2006), unemployment is caused by the nation’s incapacity to develop and utilise its personnel resources effectively, particularly in the rural sector.

Unemployment has a number of socioeconomic consequences, including a decrease in national productivity, an increase in rural-urban migration, a waste of human resources, a high dependency ratio, poverty, sadness, dissatisfaction, and a variety of immoral acts and criminal activity such as prostitution and armed robbery, among others. The societal impact of unemployment highlights the necessity to provide possible solutions to save our nation. Nigeria

1.2 Statement of Problem

According to figures from the National Bureau of Statistics, the national unemployment rate in the first quarter of 2007 was 14.6%, up from 13.7% in 2006. The rates in urban and rural areas were 14.4% and 15.0%, respectively, up from 10.2% and 14.8% in 2006.

Further investigation revealed that the unemployment rate ranged from 14.1% for the age group of 25-44 to 23.5% for the age group 65-70. Desegregation by geopolitical zone revealed an extremely unequal distribution

with the south-south zone having the highest unemployment rate of 29.5% and the south-west trailing with 8.5%. Between these extremes were the northeast (18.5%), the south-east (18.1%), the north-central (15.8%), and the north-west (14.2%).

Based on the growing burden posed by unemployment on individuals and the nation as a whole, the government has implemented a variety of strategies to control and reduce unemployment, which has yet to deliver a favourable outcome, and appears to be escalating.

The government must take drastic measures to address the problem of unemployment. The statement of problem is based on the economic, social, and political consequences of unemployment.

1.3 The purpose of the study

Economists agree that human resource unemployment is a problem that any modern government should address.

In this subsection, I will discuss the reasons why unemployment affects the Nigerian economy. Unemployment has the following effects:

i. Effects on national outputs and overall standard of living

ii. Effects on Government

iv. Effects of social implications

IV. Implications for political office holders

1.4 Research Questions.

i. How does unemployment affect the Nigerian government?

ii. Is there any impact on national outputs and the overall level of living of Nigerian citizens?

iii. Are there any social implications in the life of the people?

iv. Does unemployment affect political office holders in Nigeria?

v. Does unemployment impede the growth and development of the Nigerian economy?

1.5 Statement of Hypothesis

throughout the aforementioned questions, the hypotheses that will be employed throughout the course of this investigation include:

Hypothesis I

Ho: Unemployment has little effect on the administration of Nigeria.

H1: Unemployment affects the Nigerian government.

Hypothesis II.

Ho: Unemployment has little effect on national output or citizens’ overall standard of living.

H1: Unemployment has an influence on national output and the general level of living of citizens.

Hypothesis III.

Ho: Unemployment has no social implications in the lives of the people.

H1: Unemployment has societal consequences in the lives of the people.

1.6 Significance of the Study

This study benefits both the government and the Nigerian labour force.

The Nigerian government will attract (Foreign Direct Investors) FDI by establishing a transparent legal framework that does not discriminate between local and foreign investors, as well as by effectively implementing tax incentives generated by citizens, thereby increasing the nation’s per capita income.

The Labour: Anyone who wants a job and is now available has the best job for which he or she is qualified.

1.7 Delimitation of the Study

Throughout the course of this study, there was minimal, if any, limitation on the part of the questionnaire respondent, as not all of the questionnaires were returned, and on the part of the audience who were questioned, as they found it difficult to make 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 lower than its potential GNP.

The economy refers to the link between production, trade, and money supply in a specific country or region.

Effects: Changes that produce results.

Labour is the human factor of production, which is taken to represent the provision of human efforts for the main sum of wages and salaries.

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