CHAPTER ONE

1.0 Introduction
This chapter represents the background of the study, problem statement, purpose of the
study, objectives of the study, research questions, scope of the study and significance of
the study.

1.1 Background of the Study

Unemployment is a situation in which the able bodied people who are looking for a job
cannot find a job. (The Saylor Foundation, 2012). In this situation the person is available
and willing to work but currently without work. Unemployed individuals are unable to
earn money to meet financial obligations failure to pay mortgage payments and paying
rent to homeless therefore closure or eviction and unemployment increase susceptibility
to malnutrition, illness mental stress and loss of self-esteem, leading to depression.
Unemployment may also refer to those who are not currently working or the people who
failed to look for a job, the graduates who were not able to find a job or those who
decided not to work (The Merriam Webster Dictionary, 2004).

According to Iyoha (2002), Obadan and Odusola (2005), Unemployment generally

reduces national output and aggregate income. It creates inequality and erodes human
capital. It causes misery, poverty, social unrest and hopelessness for the unemployed, and
with resultant effects on the economic growth.

Economic growth on the other hand is the increase in the inflation-adjusted market value
of the goods and services produced by an economy over time (IMF, 2012). It is
conventionally measured as the percent rate of increase in real gross domestic product, or
real GDP. Economic growth has many dimensions, such as short-term performance,
medium term performance, long-term performance, economic performance and non-
economic performance. According to Osinubi, (2005) economic growth is a solution to
the problem of unemployment and poverty. Economic parameters affect the economic
growth and in turn economic growth can also be improved by such indicators like
employment, gross capital formation, trade among others.

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Mogna and Paculette (2009) observed that unemployment is a gender problem noting that
unemployment rates vary significantly by gender and age and for countries where data is
available, the problem is highest among young people. O’Higgins Nail (2007) noted that
at least 60 million youths in the world are jobless on average which is three times higher
than the adult rates. In recent times, the incidence of unemployment in Uganda has been
deeply and widely spread cutting across all facets of age groups, educational strata and
geographical entities. This negative development partly explains the level of economic
activities in the country. The problem of unemployment is one of the serious
impediments to social progress in Uganda, apart from the huge waste of resources; it
generates human welfare loss in terms of lower output thereby leading to lower income
(Yesufu, 2005).

Nakawa Division is one of the five administrative divisions of the city of Kampala, the
capital and largest city of Uganda. The division is composed of 23 parishes, 654 villages.
The 2014 census puts the population figure of the division at 246,781 people, with
163,606 (49.5 percent) females and 154,841 (50.5 percent) males; Children below five
years of age were 20 percent of the division population. Youth aged 10 to 24 were 30
percent of the population and 26.7 percent of the population were women of child-
bearing age. In small communities like Nakawa Division, Unemployment is seen as a
great problem to global economic development and also social progress has been on a
continuously accelerating rise, culminating in reduction of household income and living
standards and concomitant rise in the level and incidence of poverty. Unemployment is
an issue that worries policy makers in the Division. Various programs and presidential
initiatives have been initiated by the government at various levels in order to address the
problem. Government projects such as; Youth Fund under the ministry of gender and
labour and social development, Social Assistance Grants for Empowerment (SAGE),
National Agricultural Advisory Services (NAADs) have been a classical example to yield
the desired result however the problem of unemployment still persists in the division.
Despite the fact that unemployment is said to have impact on economic growth it is
important to study the causes of unemployment in Nakawa division and observe its
impact on economic growth. Despite the size of the division, economic activities,
population and interventions by the government to fight unemployment, the division still

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 faces a problem of unemployment among different age groups which also affects the
economic growth of the division and country at large which prompts the researchers to
carry out a research on the impact of unemployment on economic growth.

1.2 Problem Statement

According to last census conducted in 2014 by the Uganda Bureau of statics (UBOS),
unemployment rate in Uganda has increased to 2.10 percent in 2012 from 2.2 percent in
2014. (UBOS, 2014) This is also released in small communities like Nakawa division
where many people of different age groups in Nakawa Division are trapped in a very
difficult situation of unemployment which has always caused them untold suffering and
living under poor conditions. Government and other stakeholders like NGOs and private
people have attempted to put in place opportunities like in education, provision of capital
through micro finance institutions and support to different youth oriented development
projects and activities but even the educated have remained unemployed or
underemployed and many other projects initiated to address the youth unemployment
predicament have not had success. The high rate of unemployment has affected the
economic growth of the division as compared to other divisions such as central division
and Makindye division. The highest rate of unemployment is seen in the Youths as
compared to other age groups and this is because Unemployed youths migrate from rural
to urban areas for work, which negatively impacts on the social services sector in urban
centres. Ugandan youths shun the agricultural sector, one of the biggest employers in
rural areas, preferring to work in service sector jobs like riding motorcycle taxis (boda
bodas), or as low-wage laborers in industries. The government response has been to issue
soft loans and youth grants to agricultural programmes such as NAADS (National
Agricultural Advisory Service), the Youth Livelihood Fund, and youth SACCOs (Saving
and Credit Cooperatives). Additional services include vocational training education
programmes as well as Universal Primary and Secondary Education. Despite these
interventions, the problem of unemployment among different age groups remains high in
Nakawa Division, hence need to research on its impact on economic growth.

1.3 Purpose of the study

The purpose of study is to examine impact of unemployment on economic growth a case
study Nakawa Division

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1.4 Objectives of the Study
i. To identify the causes of increasing rate of unemployment among different age groups in
Nakawa Division.
ii. To determine the consequences of unemployment on economic growth in Nakawa
Division.
iii. To examine the relationship between unemployment and economic growth among
different age groups

1.5 Research Questions.

i. What are the causes of increasing rate of unemployment among different age groups in
Nakawa Division?
iv. What consequences of unemployment on economic growth in Nakawa Division?
ii. What is relationship between unemployment and economic growth among different age
groups?

1.6 Scope of the study

1.6.1 Conceptual scope
The study will concentrate on finding the effect of unemployment on economic growth
among different age groups in Nakawa Division. It will endeavor to analyze and find out
the cause of increasing rate of urban unemployment.

1.6.2 Geographical scope

The study will be carried out in Nakawa division located in Kampala District bordering
Kira Town to the east, Wakiso District to the north, Kawempe Division to the north-west,
Kampala Central Division to the west, Makindye Division across Murchison Bay to the
south-west and Lake Victoria to the south.

1.6.3 Time scope

The study will be confined to a period of two months, that is March 2019 to April 2019
but literature for the past six years about the topic will be used since it carries relevant
information about the study.

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1.7 Significance of the study
The result of the study are expected to make the following contributions;.
i. The study will help parents to realize that their support is a vital role to ensure
employment opportunities through acquiring education and quality learning of the youth
in schools.
ii. Various researchers will use the findings as a benchmark for further research into the
phenomenon.
iii. The study will also be in partial fulfillment for the requirement of the award of course
work marks or research methods
iv. Community leaders and members will also be informed of the dangers that come with
having a big unemployed youth population and try to draw their attention into playing an
active and participatory role in improving the conditions of people in Nakawa Division,
Kampala District and Uganda as a country
v. It also provides government with information that can be used in planning for its people
and to find ways of improving their welfare.

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 CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
This chapter reviews the existing literature put forward by different scholars and
personalities on the effect of unemployment on economic growth.

2.1. Concept of Unemployment

There is no exact definition of unemployment in the economic literature. To the layman,

unemployment means a state of joblessness.
According to The Saylor Foundation, (2012), unemployment is a situation in which the
able bodied people who are looking for a job cannot find a job.

Unemployment may also refer to those who are not currently working or the people who
failed to look for a job, the graduates who were not able to find a job or those who
decided not to work (The Merriam Webster Dictionary, 2004).

Unemployment is a state of affairs when in a country there are a large number of able-
bodied, persons of working age who are willing to work but cannot find work at the
current wage level. People who are either unfit for work for physical or mental reason, or
don’t want work e.g. Sadhus are excluded from the category of the unemployed (Ahuja et
al, 2006).

The International Labour Organization (ILO) defined unemployment as the people who
are out of work, want a job, have actively sought for work in the previous four weeks and
are available to start work within the next fortnight; or out of work and have accepted a
job that they are waiting to start in the next fortnight (ILO, 2005).

2.1.1 Types of Unemployment

There are nine types of unemployment but Asoluka & Okezie (2011) identified five types
of unemployment and these are:
Structural unemployment: Occurs when there is a change in the structure of an industry
or the economic activities of the country. As an economy develops over time the type of
industries may well change. This may be because people's tastes have changed or it may
be because technology has moved on and the product or service is no longer in demand.

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Frictional unemployment: This type of unemployment is caused by industrial friction,
such as, immobility of labor, ignorance of job opportunities, shortage of raw materials
and breakdown of machinery, etc. Jobs may exist, yet the workers may be unable to fill
them either because they do not possess the necessary skill, or because they are not aware
of the existence of such jobs. They may remain unemployed on account of the shortage of
raw materials, or mechanical defects in the working of plants. On average it will take an
individual a reasonable period of time for him or her to search for the right job.

Seasonal unemployment: Njoku et al. (2011) explains that seasonal unemployment is

due to seasonal variations in the activities of particular industries caused by climate
changes, changes in taste or by the inherent nature of such industries. This is due to
seasonal variations in the activities of particular industries caused by climatic changes,
changes in fashions or by the inherent nature of such industries. The rain coat factories
are closed down in dry season throwing the workers out of their jobs because there is no
demand for rain coat during dry season. Likewise, the sugar industry is seasonal in the
sense that the crushing of sugar-cane is done only in a particular season. Such seasonal
industries are bound to give rise to seasonal unemployment

Cyclical unemployment: This type of unemployment (also known as Keynesian

unemployment or the demand deficient unemployment) is due to the operation of the
business cycle. This arises at a time when the aggregate effective demand of the
community becomes deficient in relation to the productive capacity of the country. In
other words, when the aggregate demand falls below the full employment level, it is not
sufficient to purchase the full employment level of output. Mafiri (2002) elucidates that
in Africa, cyclical unemployment has a dimension that makes it uneasy to address
successfully: it is superimposed on large scale structural unemployment. As a result, the
unemployment problem becomes severe, complex and difficult to alleviate

Disguised unemployment: This refers to the mass unemployment and underemployment

which prevail in the agricultural sector of an underdeveloped and overpopulated country.
For example, if there are four persons trying to cultivate an area of land that could be
cultivated as well by three persons, then only three of these persons are really fully
employed and the remaining fourth person represents disguised unemployment. The

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 people in underdeveloped countries are outwardly employed but actually they are
unemployed, the reason being that agricultural production would suffer no reduction if a
certain number of them are actually withdrawn from agriculture.

2.2 Causes of Unemployment

According to Asoluka & Okezie (2011) and Ifeanyi (2015): The following are the causes
of unemployment identified.

Rapid population growth: excessive increase in population fuel the rate unemployment
in an economy, to some extent increase in population is a blessing while in order hand is
a doom for that economy; if they cannot be able to create an enabling that can absorbs
their teeming population is a problem in itself. Because the impact of it will be
manifested in all ramification.

Labour Law: the institutions in charge of employment in African countries are bedeviled
with corruption; means all criterion to use before employing an employee are violated to
the extent only the privilege few can get access for employment, that is the reason
rendered many able-bodied unemployed.

Poor Economic Growth Rate: when an economy is in the vacuum of vicious cycle of
poverty will experience low level of savings, investment, output and very low GDP
which accompanied by low growth rate. If this exist there will low employment, low
productivity will yield low economic growth. As result of all fluctuation making so many
factor unemployed.

Adoption of Untimely Economic Policy Measures: Implementation of policy that are

not relevance or in need at current situation an economy is will make so many volatility
in some factor within the economy, which followed by unemployment. In return the
policies affect the masses immensely, in terms of unemployment and living standard,
exchange rate up and down, balance of payment instability are experienced in the
economy.

Wrong Impression about Technical and Vocational Studies: many entrepreneurial

skills Centre have been misunderstood by their role of skill imparting, because many

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 people are been sponsored to acquire some skill in related area, but they turnout
unemployed. That is the reason many people are become pessimist about vocational
studies, the ended up graduating from the Center without an enabling environment that
will absorb them and problem of capital to start-up and become self-employed, without
enabling environment and capital transfer from the government, render many
unemployed and become hopeless about technical and vocational studies.

Poor Enabling Environment: any economy that fail to opening up wave of

opportunities that will give ways for mass establishment of industries which accompanied
by able and willing labour forces that will surrender their labor to the establishment in an
economy it will created employment, while is reverse happen unemployment will
emanate and keep increase year in year out.

Rural-urban migration: this factor causes unemployment significantly, as a result of the

following; limited education institutions and poor curriculum, wide range differential
between urban and rural areas, lack of basic infrastructure in the rural areas, government
agricultural policy, these constraint fuel a lots of unemployment in both rural and urban
areas.

2.3 Concept of economic growth

Economic growth is the increase in the inflation-adjusted market value of the goods and
services produced by an economy over time (IMF, 2012). It is conventionally measured
as the percent rate of increase in real gross domestic product, or real GDP.

Theoretically, economic growth is viewed as the most prominent instrument for reducing
unemployment, poverty and to help improve the living standards of people. Kreishan
(2011) states that an increase in the growth rate of GDP of an economy is expected to
increase employment levels thus reducing unemployment. This is a widely accepted view
in economics theory, hence the theoretical proposition relating output and unemployment
is known as Okun’s Law. Okun’s law describes one of the famous empirical
relationships of output and unemployment in macroeconomics theory and has been found
to hold for several countries mainly in developed countries (Lee, 2000; Fariso & Quade,
2003; Daniels & Ejara, 2009).

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2.4 Consequences of Unemployment on Economic Growth
According to Bello (2003), the consequences of unemployment in Africa are very severe
and threatening to the citizenry and the economy as a whole. Some of these consequences
bother directly on the unemployed, others like epidemics are limitless in effects. They
include the following:

Contributes to low GDP

It is an established economic reality that the size of the workforce directly impacts a
country’s GDP. Not only does the work force produce manufactured goods or services or
agricultural produce in direct proportion, but also brings in its wake increasing
purchasing power, which in turn, fuels economic growth (Bello, 2003). Thus
unemployment contributes to a reduction in the potential which exists in spurring a
country’s GDP.

Contributes to drugs

Due to frustration as a result of not gainfully employed, most people turn to drugs. Young
people not attending school, living on the street and outside the reach of mainstream
services, is more likely to abuse illicit substances than are employed young people. The
major problem drugs in Uganda as reflected by treatment demand. In Uganda, the main
drug used by adolescents is marijuana, which in 2002 accounted for 99 per cent of
seizures made by the authorities, with 34.6 million users representing 7.7 per cent of the
continent’s 15-24 year-old population. In other parts of Uganda, Drug abuse decreases
young people’s possibility of finding employment and results in additional costs to the
economy. (John, 2009).

Unproductive labour force

The most direct impact on the economy of an unproductive labour force is lost output in
terms of goods and services. With no income tax to collect and the loss of receipts from
indirect taxes such as the value added tax, the government takes in less in tax revenue
Bellemare and Poulin-Simon (1994).

Psychological effect

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Young men and women, who have put in a decade or two in schools and colleges, have
dreams and aspirations. These are dreams of securing satisfying jobs following their
years of struggle, meeting basic necessities of life (food, clothing, shelter and healthcare),
graduating to a life of comfort and dignity and, eventually, enjoying the luxuries of life.
The trauma of seeing their dreams shattered week after week, month after month, can and
does lead to deep psychological scars that are very difficult to face at such a young age.
These can impact any individual’s self-esteem and can lead to clinical depression. (Bello,
2003).

Family Support
In a country like Uganda, where the people retire when they are not tired and there is no
social security net, very often a family depends on a son or A Daughter graduating from
school or college to take up employment in order to support the entire family. When that
does not happen, the financial woes are unimaginably sorrowful. (John, 2009).

Law and order

It has been established that educated unemployed are likely to take to crime- blue collar
or white collar crimes- more easily than others. This arises out of the theory that they
would have, at some stage of their careers, seen good life, even from a distance, and
formed their dreams based thereon. When they fail to see these dreams turn into reality,
some turn to crime. (Bello, 2003),

Effect on health

It is equally easy to visualize that lack of steady income could, apart from the above ills,
also lead to inadequate nutrition and adversely affect health of the youth and their
families. Unemployed people are at a much higher risk of contracting HIV/AIDS than are

employed people. This is due to persistent behavioural risks, and lack of information,
education and services (UNAIDS, 2004).

Social costs of unemployment

Unemployment has a significant social cost. In addition to the indirect health cost,
unemployment partly contributes to illicit activity, which increases insecurity (Gagade

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and Menghwani, 2015). With growing unemployment, they divide between the rich and
the poor grows, resulting in social tensions which could affect the entire fabric of a
community and the entire country. Even in developed regions the increase in criminal
activity by unemployed young people has had a social cost. In Uganda long-term
unemployment substantially increased young men’s likelihood of committing a property
crime. Providing more job opportunities for young men could reduce property crime in
Uganda by nearly 6 per cent a year. The crime rate could be reduced by nearly 15 per
cent a year if these individuals completed high school. The increase in criminality in a
country as a consequence of youth unemployment causes losses in foreign direct
investment. For example, foreign investors have cited crime as the biggest deterrent to
investing in Uganda. Mass unemployment among young people also disrupts long-term
development of labour skills and experience. Sustained unemployment could also cause
young people to be hostile to the world of work and more receptive to drugs and crime
Civil disorder, sometimes developing into civil strife and conflict, is one of the most
serious constraints to Uganda’s development. Young unemployed men are prime
candidates for recruitment as soldiers in any civil disorder. The chances of a poor country
experiencing civil conflict have also been linked to the size of its youth population. In
addition, lower education status of young men is associated with a higher propensity for
internal conflict. (Tokman, 1995)

Political instability
When unemployment grows in a community, dissatisfaction with the incumbent
Government follows. (Bello, 2003), This is, in turn, leads to frequent changes in
Governments or formation of unsteady coalitions. Neither is healthy for long term stable
economic policies and this situation could lead to a vicious circle of political changes. As
President Franklin D. Roosevelt had stated, "Not only our future economic soundness but
the very soundness of our democratic institutions depends on the determination of our
government to give employment to idle men." Unemployment (as also
underemployment) therefore means to me, “The saddest sight that fortune’s inequality
exhibits under the sun”, as stated at the beginning of this.

Commercial sex work is more common among young unemployed girls

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 In Uganda unemployment has driven many young women and girls into sex work.
Struggling to support families and provide care to sick members of the household, they
are often restricted in their opportunities for education and training. The lack of job
opportunities and their disadvantageous social role, both in terms of assets (education and
health) and cultural norms, make them more likely to end up as sex workers (ILO 2005).

The demand for commercial sex workers from international tourism flows to Uganda is
on the rise. In Uganda, for example, sex tourism has challenged the well-being of poor
unemployed young women, who often struggle with hunger and destitution. In Uganda
still the boost in foreign tourism led to an increase in the number of commercial sex
workers. (Opii,D.A.P 2009).

2.5 The relationship between economic growth and unemployment

The relationship between economic growth and the unemployment rate based on
theoretical linkage can be explained by various authors from various research financings
as explained below;

Osinubi (2005) observed that although economic growth is necessary for trimming down
unemployment and poverty alleviation. However, it is not sufficient since economic
growth alone cannot overcome all the crucial factors that contribute to poverty and
unemployment. Therefore, there is a need to adopt more policies that help to construct
investment programs which enable job creation, thus, spurring economic growth and
eradicating of poverty.

Hussain et al, (2010) finds economic growth and unemployment causal relationship using
time series data for the economy of Pakistan. They said that unemployment is a political
and social issue for Pakistan, which is a cause that human resources are wasted leading a
decrease in growth rate. They also claim that unemployment is a historic issue for
Pakistan’s economy and used GDP as a proxy variable for economic growth. In finding
causal relationship among growth and unemployment they also used some other
explanatory variables such as openness of trade, labour capital. They conclude that
economic growth is a major source to minimize the unemployment rate. They further
concluded that labor force was increasing whereas economic capacity was not expanding
according to labor force.

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Adjemian et al. (2010) examine the relationship that how labor market institutions affect
unemployment and then economic growth. The data set covers 183 European regions and
period from 1980 to 2003. They show that high labor costs and trade union power lead to
higher unemployment rate and lower economic growth rate. Efficient bargaining
increases the level of employment at the price of lower economic growth. From empirical
results they concluded that no consequences were found concerning the indication of
correlation among economic growth and unemployment rate.

Ahmed et al. (2011), explore the relationship among unemployment and growth (GDP) of
Nigerian Economy, by taking the secondary data for just 9 years from 2000 to 2008.
They used regression techniques and showed that unemployment effect is 65.5 percent on
the Nigerian GDP growth. Empirical findings showed that if unemployment tends to zero
then projected GDP would be $ 240,089,308.8. They concluded that increase in
unemployment drastically diminished the Nigerian economic growth and recommended
that Nigerian government should improve an accurate man management system among
others.

Njoku and Ihugba (2011) examined the unemployment and economic growth in Nigeria,
also considering some other variables like as percentage of agricultural contribution to
GDP and percentage of oil contribution to GDP. This study includes the data of Nigerian
economy from 1985 to 2009. Major findings includes that economy grew by 55.5 percent
during the period 1991 to 2006, and population increased by 36.4 percent. Due to this
increase there would be decrease in unemployment but unfortunately unemployment
increased by 74.8 percent during this period. They also reasoned that from the
independence of Nigeria in 1960, domestic structural shifts have not resulted in any
sustainable and significant growth and development. They also concluded that
unemployment is posing many challenges for Nigerian economy. Unemployment is
increasing and economy is also increasing. They think that increase in unemployment is
due to increase in population of the country. They also conclude that some other causes
for abnormal situation are gross mismanagement of national resources, misappropriation
of funds, weak infrastructural facilities, lack of political will, no rapid industrialization,
wasteful spending etc.

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Stephen (2012) explored the relationship between urban unemployment crisis on
economic growth of Nigerian economy, also combining with inflation rate and
investment level. Stephen used OLS multiple regression technique and estimated
coefficients showed that urban unemployment crisis had negative impact on economic
growth. He explored that the past values of unemployment can be used to forecast the
future behavior of economic growth of Nigerian economy. His study contains the data
period from 1980 to 2008 and said that this 29 year period is long enough to find the
long-run relationship among unemployment and growth. He finally concluded that
unemployment has negative impact on growth. Empirical results imply that
unemployment, inflation, private domestic investment and money supply explained the
systematic variations of 58 percent on economic growth of Nigeria. Stephen suggested
that integrated vocational training programs and economic activities toward self-reliance
and self- employment should be encouraged so that the unemployment rate can be
minimized.

Al-Habees and Rumman (2012) investigated the relationship between unemployment rate
and growth for Jordan and some specific Arab countries. They said that unemployment is
a depressing fact for human society and affects negatively the directions and dimensions
of the society. In totaling, it refers to financial and fiscal imperfections toward the society
formation. The study focuses the association among economic growth and unemployment
rate in Arab countries especially Jordan.

They concluded that the efficiency of economic procedures aimed at dropping

unemployment rates in those countries with typical rate of economic growth. They
conclude that for the reduction of 1 percent in unemployment there is need to
improvement of 3 percent in economic growth.

Quintana and Royuela (2012) studied the relationship of unemployment and long term
economic growth while considering income inequality role and urbanization, by
considering international data between 1990 and 2007. In this research they mostly study
the mechanisms through which high unemployment directly hind economic growth. They
conclude that in short-run economic growth and unemployment rates are inversely related
along with trade cycles, but in long run high unemployment have economic costs that can

15
 become harmful for long run growth. They also conclude that inequality had significant
negative consequences for long run growth and unemployment is at the central path of
revival and growth for long run.

2.6 Conclusion
Basing on the findings of various authors on in this study it is seen that unemployment
has a direct impact on economic growth hence positively correlated to each other.

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 CHAPTER THREE:

RESEARCH METHODOLOGY

3.0 Introduction
This chapter presents describes the research design, Population, Sampling size, sampling
methods, Data collection methods used, data analysis, data presentation and limitation
study.

3.1 Research Design

Kumar (2005) defines a research design as a plan, structure or strategy that guides in an
investigation or the arrangement for conditions of collection and analysis of data. The
study will adopt a cross sectional research design. This design is adopted because it
provides a quick snap shot about the different variables of the research problem. The
study will consist of both qualitative and quantitative research approaches, which
explains each designs in detail, the qualitative approach is which is more participatory
and empowering both to the respondents and the researcher as it enabled the researcher to
get closer to the participants and their unique contexts, in order to understand their
actions and perceptions in detail however on the other hand the quantitative approach
will be used because it enables the variables to be easily measured and analyzed in form
of numbers and percentages thus describing the impact of unemployment on economic
growth of Nakawa Division.

3.2 Population of the Study

According to the 2014 National Housing and Population Census report, Nakawa
Division, has a population of 246,781 people, with 163,606 (49.5 percent) females and
154,841 (50.5 percent) males; Children below five years of age were 20 percent of the
division population from a few are employed and majority are unemployed. The study
will involve representatives of the unemployed youths, representatives of the elderly,
representatives of the unemployed non-youths, Government officials, Local leaders and
leaders of various financial institutions. However, only 100 respondents will be sought to
act as the study population, which will be representative enough to make the study a
success.

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3.3 Sample size and sampling techniques
According to Amin (2005), sampling is the process of selecting elements from a
population in such a way that the sample elements selected represent the population.

3.3.1 Sample Size

The categories of respondents to be sampled will include representatives of the
unemployed youths, representatives of the elderly, representatives of the unemployed
non-youths, Government officials, Local leaders and leaders of various financial
institutions. The researchers will use a sample of 80 respondents drawn from the
population of 100 employees. The determination of sample will be made in consultation
with Amin (2003) who is by help of kregcie and morgan (1970), suggests the use of a
sample table to determine which equivalent sample would ensure representation.

The Sample size was calculated using a Krejcie R.V & Morgan D.W (1970) table.

These will include the following as displayed on the table. For these selected will give the
researchers the information needed. These will be selected because they have the
information that the researchers need for the study.
Table 1: Showing sample size of respondents

Category of Respondents Populati Size Percentage Sampling technique

on
Representatives of the unemployed 40 34 42.5 Simple Random
youths sampling

Representatives of the unemployed 20 16 20 Simple Random

non-youths sampling

Representatives of the elderly 16 12 15 Simple Random

sampling

Government officials 4 2 2.5 Purposive sampling

Leaders of various financial 14 10 12.5 Purposive sampling

institutions

Local leaders 6 6 7.5 Purposive sampling

TOTAL 100 80 100

Using a combination of purposive and simple random sampling techniques, primary data
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 Below is the explanation.

3.4.1 Simple Random Sampling Technique

Simple random sampling is the basic sampling technique where we select a group of
subjects (a sample) for study from a larger group (a population). Each individual is
chosen entirely by chance and each member of the population has an equal chance of
being included in the sample. The reason for using this technique is that every possible
sample of representatives of the unemployed youths, representatives of the unemployed
non-youths, representatives of the elderly will have the same chance of selection.

3.4.2 Purposive Sampling

This method was used to select government officials, leaders of various financial
institutions, local leaders in Nakawa Division. The interviews guides will be administered
to them. The researchers will use this method to get specific and rich information from
the earmarked respondents and their knowledge and understanding will make the study a
success, given that their participation will be prearranged because of their busy schedules.

3.5 Data sources

3.5.1 Primary data source
Primary data is original data collected by the researcher for the research problem at hand
(Yin, 2003). This will be mainly obtained from the responses of respondents to semi
structured interviews and participant observation recordings. The primary data the
researchers will collect include numbers and figures from interviews from different
respondents.

3.5.2 Secondary data source

The secondary sources of data refer to data collected by a person or researcher other than
the user of the information (Lindstrom, 2010). This study information will be collected
from relevant materials and other documented relevant information from Nakawa
Division such as available handbooks, annual reports and other relevant information from
the Nakawa Division Head quaters.

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3.6 Data Collection Tools
The data collection tools that will be used include; questionnaire, interviews, focuses
group discussions to collect both qualitative and quantitative.

3.6.1 Questionnaire
Sekaran (2003) defines it as a pre–formulated written set of questions to which
respondents record their answers, usually within rather closely defined alternatives. The
researchers will therefore distribute written questionnaires to the respondents who will
answer the questions accordingly. The questionnaires will secure and standardized results
will be tabulated and treated statistically. The reason for using this method of data
collection is because the responses will be gathered in a standardized form. The
questionnaires are also more objective relatively quick and time saving to collect
information using the questionnaire.

3.6.2 Interview

Interviews refer to a one-on-one conversation with one person acting in the role of the
interviewer and the other in the role of the interviewee (Polak and Green, 2015). Direct
interviews will be used to elicit responses from some members of local leader,
government officials and Leaders of various financial institutions. This will help the
researchers to get firsthand information which could be used to draw conclusions on the
topic under study.

3.6.3 Focus Group Discussion

According to Smith et al, (2010). Focus group discussions enhance the attainment of deep
information and it encourages interaction and probing on spot which other research
methods may not get. This method will be used by the researcher to gather primarily
qualitative data from representatives of the unemployed youths, representatives of the
unemployed non-youths and representatives of the elderly. The respondents were
gathered on appointment to a particular location. They will be asked questions designed
to draw their attention and response on topics related to this study. Respondents will be
allowed to answer in their own words rather than having to choose from predetermined
options, as it is usually the case for survey techniques. The information from the groups

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 will help to supplement data that will be collected using interviews and questionnaires,
which enhance the possibilities for triangulation.

3.7 Data Analysis

Data analysis is the process of bringing order, structure and meaning to the mass of
collected data to obtain useful information. According to Amin (2005), data analysis
includes editing, coding, computer data entry, and verification of accuracy of the data
entered. Both quantitative and qualitative data will be analyzed following different
methods of analysis as below:

3.7.1 Quantitative data analysis

Data from the questionnaires will be arranged, coded, edited for consistency and easiness,
and later entered using Statistical Package for Social Scientists (SPSS Version 22) to
reduce data from detailed to summarized and understandable forms such as tables, charts
and graphs. Data will also be analyzed using descriptive statistics such as frequencies,
percentages and cross tabulations. Interpretations and implications of the generated
statistical information will be derived, objective by objective following the data
presentation and analysis.

3.7.2 Qualitative data analysis

Regarding qualitative data, the different answers from the respective respondents will be
categorized into common responses. Qualitative data will be descriptive and obtained
from interviews and open-ended questions. This data will be presented in accordance
with the objectives of the study and will help to substantiate findings from quantitative
data.

3.8 Ethical Consideration

In any research, the principles of research ethics tasks the researchers to uphold the
values and moral standards, act in a professional manner, protection and respect for the
participants welfare (Kvale & Brinkmann, 2009). The researchers will ensure at most
confidentiality of respondents/participants. First, the data collection instruments will not
prompt respondents to write their names which will ensure that participants’ identity will
not revealed. Participants will also be informed of their voluntarily participation before
they could actually participate in the study. The researchers will also set different data

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collection points in different parishes, Lcs, and offices with in Nakawa Division which
will avoid moving and meeting respondents all the time which seem to be time
consuming hence raising suspicions from those that have not participated in the study.

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