RIFT VALLEY UNIVERSITYBURAYU CAMPUS

FACULTY OF BUSINESS AND SOCIAL SCIENCES

DEPARTMENT OF ACCOUNTING AND FINANCE

ASSESSMENT OF CHALLENGES OF YOUTH UNEMPLOYMENT IN

UNDERGRADUATE IN SHAGER CITY, IN CASE OF BURAYU TOWN

A Research Paper Submitted to Faculty of Business and Social Sciences,

Department Of Business Management In Partial Fulfillment Of The
Requirements For The Award Of Bachelor Art’s (BA) Degree in Business
Management.
Student Name ID.No
1. Lalise Dasu…………………………………………………….….0285/13
2. Hana Fufa………………………………………………..…….…0176/13
3. Hawi Daraje……………………………………………….……..0180/13
4. Lalise Chemeda…………………………………..…………..….0201/13
5. Gadise Yadate…………………………………………………...0315/13

Advisor
Dejene Seboka (MBA)

May, 2024
Burayu, Oromia

I
 DECLARATION
This is to certify that the research Entitled: Assessment of Challenges of Youth Unemployment in
Undergraduate in Shager City, In Case Of Burayu Town Submitted to Rift Valley University,
Burayu Campus, Department of Business Management in partial fulfillment of the requirements
for the degree of Bachelor of Arts in Business Management is a record of original research carried
out under my supervision, and no part of the research has been submitted for any other degree or
diploma. The assistance and help received during the course of this investigation have been duly
acknowledged. Therefore, we recommend that it to be accepted as fulfilling the research
requirements.

NAME OF THE STUDENTS SIGNATURE DATE

1. Lalise Dasu _________________ ___________

2. Hana Fufa _________________ ___________
3. Hawi Daraje _________________ ___________
4. Lalise Chemeda _________________ ___________
5. Gadise Yadate _________________ ___________

APPROVED BY
NAME SIGNATURE DATE
1. Department head of Business Management ______________ ______
2. Advisor ______________ ______
3. Examiners ______________ ______

I
 ACKNOWLEDGMENT

First and for most, we would like to thank the almightily “God” who help us by every direction.
Secondly we would like to reward our deepest gratitude to our Advisor Mr. Dejene Soboka
(MBA) who has provided his wise and intellectual advice, guidance and directive to make this
research Paper. Third, our appreciation goes to Rift Valley University Burayu Campus of
Business and Social Sciences for giving us this chance to prepare a Paper on Business
Management for the research paper. At last but not least we are also appreciating all Social Worker
of Rift Valley University Burayu Campus for their valuable support in every aspect.

II
 TABLE OF CONTENTS
DECLARATION ............................................................................................................................. I
ACKNOWLEDGMENT................................................................................................................. II
LIST OF TABLES ......................................................................................................................... V
LIST OF ACRONYMS ................................................................................................................ VI
ABSTRACT ................................................................................................................................. VII
CHAPTER ONE ............................................................................................................................. 1
INTRODUCTION .......................................................................................................................... 1
1.1 Background of the study ....................................................................................................... 1
1.2. Statement of the problem ..................................................................................................... 2
1.3 Research Question ................................................................................................................ 4
1.4.1. General objectives. ........................................................................................................ 4
1.4.2. Specific objectives of the study .................................................................................... 4
1.5. Significance of the study...................................................................................................... 4
1.6. Scope of the study ................................................................................................................ 4
1.7. Limitation of the study ......................................................................................................... 5
1.8. Organization of the Paper .................................................................................................... 5
CHAPTER TWO ............................................................................................................................ 6
LITRATURE REVIEW .................................................................................................................. 6
2.1. Basic Concepts of Auditing ................................................................................................. 6
2.2 Definition of unemployment ................................................................................................. 6
2.3 Types of unemployment ....................................................................................................... 6
2.3.1 Cyclical unemployment ................................................................................................. 6
2.3.2 Structural unemployment ............................................................................................... 6
2.3.3 Frictional unemployment ............................................................................................... 7
2.4 Theoretical Review ............................................................................................................... 7
2.5 The main Challenges for Youth unemployment under graduates in Burayu Town ............. 7
2.6 The major of youth unemployment Shegar city, in Burayu town......................................... 8
2.7 Empirical Review.................................................................................................................. 8
2.8 Conceptual Frame work ........................................................................................................ 8
CHAPTER THREE ...................................................................................................................... 10
RESEARCH DESIGN AND METHODOLOGY ........................................................................ 10
III
 3.1. Location area of the study .................................................................................................. 10
3.2. Research Design................................................................................................................. 10
3.3 Source of data ..................................................................................................................... 10
3.3.1 Primary source of data ................................................................................................. 10
3.3.2 Secondary source of data ............................................................................................. 10
3.4 Sample size and Sample techniques ................................................................................... 11
3.5 Method of data collection ................................................................................................... 11
3.6 Method of data Analysis ..................................................................................................... 11
3.6. Methods of data analysis and presentation ........................................................................ 12
3.7 Validity and Reliability ....................................................................................................... 12
CHAPTER FOUR ......................................................................................................................... 13
DATA PRESENTATION AND ANALYSIS .............................................................................. 13
4.1 Socio-demographic Characteristics of Respondents ........................................................... 13
4.1.1 Age groups of respondents........................................................................................... 13
4.1.2 Gender of respondents ................................................................................................. 14
4.1.3 Level of education of respondents ............................................................................... 14
4.1.4 Marital status ................................................................................................................ 15
4.1.5 Period of unemployment .............................................................................................. 15
4.2 Causes of unemployment among youth .............................................................................. 16
4.2.1 Lack of Quality Education (LQE)................................................................................ 16
4.2.1 Population Growth (PG) Table .................................................................................... 17
4.2.3. Lack of Job Creation (LJC)......................................................................................... 17
4.2.4 Skills Mismatch (SMM) .............................................................................................. 18
4.3 Effect of unemployment among youth ............................................................................... 19
CHAPTER FIVE .......................................................................................................................... 23
SUMMARY, CONCLUSION AND RECOMMENDATION ..................................................... 23
5.1 Summary ............................................................................................................................. 23
5.2. Conclusion ......................................................................................................................... 25
5.3. Recommendation ............................................................................................................... 25
REFERENCE ................................................................................................................................ 26
APPENDIX ................................................................................................................................... 29

IV
 LIST OF TABLES
Table 1: Age groups of respondents ............................................................................................. 13
Table 2: Gender of Respondent .................................................................................................... 14
Table 3: Education status .............................................................................................................. 14
Table 4: Marital Status .................................................................................................................. 15
Table 5: Period of unemployment................................................................................................. 15
Table 6 Lack of Quality Education (LQE) ................................................................................... 16
Table 7 population growth ............................................................................................................ 17
Table 8 Lack of Job Creation (LJC) ............................................................................................. 17
Table 9: Skills Mismatch (SMM) ................................................................................................. 18
Table 10 Effects of Unemployment (EU) ................................................................................... 19
Table 11 In Shager city Burayu town of the youth are unemployed and have become drug and
alcohol addicts. ............................................................................................................................. 19
Table 12: Being unemployed for a long time at a young age leads to a lack of work experience
and skills ....................................................................................................................................... 20
Table 13: Youth unemployment affects the economic development of the country .................... 20
Table 14: Youth unemployment creates additional costs for the government............................. 21
Table 15 Youth unemployment leads to high crime rates ............................................................ 22
Table 16: Youth unemployment affects the political stability of a country ................................. 22

V
 LIST OF ACRONYMS

AAU – Addis Ababa University

ACBF – Africa Capacity Building Foundation

AD – Aggregate Demand

ADB – African Development Bank

AU – African Union

DESA – Department of Economics and Social Affairs

EEA – Ethiopia Economic Association

ESAA – Education Statistics Annual Abstract

FDRE – Federal Democratic Republic of Ethiopia

FGD – Focus Group Discussions

GDP – Gross Domestic Product

ILO – International Labor Organization

KII – Key Informant Interviews

MSE - Micro and Small Enterprises

NBE – National Bank of Ethiopia

PASDEP - Plan for Accelerated and Sustained Development to End Poverty

SSA – Sub – Sahara Africa

UEUS – Urban Employment and Unemployment survey

UN – United Nations

UNFPA – United Nations Fund for population activities

WB – World Bank

VI
ABSTRACT
This study was to assess the major Challenges and tends of youth unemployment among first
degree graduates by considering the gap between demand and supply side of labor
market.Gradute youth Unemployment becomes the very critical Challenges in Burayu city. Youth
age groups whether educated or non-skilled can be the reasons of an economic growth. If the labor
force will be manage properly and use as a key resource for development. Today Challenges youth
unemployment is common agenda and critical issues of all country. Practically it’s the serious
problem in developing country. In Ethiopia especially in Oromia special zone in Burayu City, lack
of employment opportunities for educated young people is the critical development challenges
facing the country. This study is conducted to identify the Challenges of youth unemployment
among first degree graduates in Burayu city. The study was based on descriptive analysis both
(Qualitative and quantitative date). 2000 graduate youths are select by multi-stage stratifies
random sampling technique to collect primary data in Burayu. The 1st results of the study show
that lack of entrepreneurship skill, high number of graduates, huge rural- urban migration and
higher population growth are the main Challenges unemployment in Burayu.

Key Words: Challenges, Youth, Unemployment, Shager City, Burayu Town

VII
 CHAPTER ONE
INTRODUCTION

1.1 Background of the study

Youth unemployment undergraduate is unemployment of young people who does not have job, as
defined by United Nations the age range from 15-24 years old constitutes as youth. An employment
person is defined as someone who is unemployed or have no job, but willing able to work and is
actively seeking work (UN, 2014). Youth Unemployment is serious issue globally and an impact
in most country. (World Bank 2015).
Both social and economic situation highly depend up on the capacity of the youth to engage in
product activities (International labor organization 2011). Youth Unemployment is worse than
adulthood unemployment. Stressing many countries are facing a shift from school to work. Young
people in developing countries face nationally the challenges of finding successful job but also
finding a secure & acceptance job.
Ethiopia is characterized by a highly expanding labor force with an increasing proportion of youth,
and employment growth is insufficient to absorb this high proportion of labor, especially the youth
part, in several sectors of the economy. In line with Martha, youth unemployment is high and rising
in Ethiopia despite recent economic growth. Additionally, the percentage of urban youth at the
national level was 22.9, while it had only been 3.1% in rural areas, according to the Ethiopian labor
force survey report. “A labor survey report indicated that in 5 urban areas, the estimated
unemployment rate was 41.3% and the incidence of youth unemployment was 45.5% and 35.7%
for females and males respectively” (Central Statistics Agency (CSA).

In Ethiopia, several factors contribute to youth unemployment like negative financial performance,
low education level, low entrepreneurship, mismatch skill and low awareness among the youth” (
Asian Journal of Advances in Research, 2022). Moreover, the potential causes of unemployment
in urban Ethiopia comprise highly increasing rate of youth labor, the intensive internal migration,
and literacy rate, poor to modest macroeconomic performance, low level of job creation and low
level of aggregate demand within the economy”. Additionally, high population growth, highly
increasing rural-urban migration and low economic development have high contribution for
present high unemployment level. Due to this, specifying the underlined causes prompting

1
unemployment of urban youth residents should be the primary step to come back up with the
appropriate solutions for the problem (Getinet H. 2003).

Duration is shorter for those aspiring for high paying public sector jobs and for those with their
fathers are civil servants. Getinet H. (2003), using data from the 1994 and 2000 waves of the
Ethiopian Urban Socio Economic Survey, studies the incidence of youth unemployment in
Ethiopia with special focus on the urban youth and finds that youth unemployment was high at
more than 50%. He also studies the determinants of self-employment in urban Ethiopia and
concludes that self-employment was less among the young, the educated and those who migrated
to urban areas recently.

It is a common open secret to see many young people in Addis Ababa city, especially in Arada
Sub-city, looking at job boards instead of doing their own business or becoming an entrepreneur.
Of course, although the government has given a small amount of training to young people to
engage in small business, the desire of many has not made their skills to the next level, instead of
trying to cross over to the next level; it is common to notice that they are satisfied only with the
same daily income. It can be seen as proof that according to the government policy, one job can
only be used for 5 years, and holding on to it without progress beyond that is not beneficial for
oneself or others, except for spreading dependency. In general, the private sector should be the top
employer, and then self-employment should be considered as the main problem-solver (ILO
2019d). Expanding job availability and productivity needs comprehensive strategy to solve
problem of obstinately youth unemployment.
The African capacity building foundation made to order tactical lesson to investigate strategies
and capacity building primacies over under graduate jobless in Burayu.

1.2. Statement of the problem

Unemployment is one of the major factors that affect the development of the nation. Ethiopia is
one of the underdeveloped countries, which is characterized by the existence of unemployment.
Urban unemployment is a serious problem in Ethiopia, because of the expansion of urban area and
the migration of people from rural to urban area. According to MoFED, (2010), unemployment
includes the economically active population who were not engaged in productive activities during
most of the twelve months preceding the survey date.

2
The high growth rate of the Ethiopia population is one of the possible reason for the increased
number of youth being unemployed. General poverty, an outdated education system and corruption
are only some of the reasons that are often mentioned in connection with youth unemployment in
Africa, and more specifically in Ethiopia. Therefore, this enormous problem can be a threat to the
political and economic stability of the whole country. (World Bank, June
2014)
One of the central elements of Ethiopia’s developmental challenge is unemployment and the
inefficient labor market of urban areas. Ethiopia has one of the fastest growing urban populations
in Africa with an urbanization rate of approximately 4 percent per annum (Legesse, T. 2015).
This high rate of urbanization places Ethiopia’s urban centers under great stress mainly
unemployment. Despite some improvements in recent years, a high level of unemployment
continues to be a serious social problem and major policy challenge facing urban Ethiopia
(Dechasa, F. 2014). The majority of the researches that have been done so far tends to concentrate
on the incidence of unemployment at country level (aggregate of rural and urban) or in specific
population categories, usually urban youth or women unemployment (Eita, J. H. and Ashipala, J.
M. 2010). Others attempt to deal the issue of unemployment at national urban level integrating it
with labor market and efforts and challenges of employment creation.
Unemployment a macro level epidemic and even the most advanced and economical flourishing
countries face difficult in promoting job creation and growth. Burayu city is one of the rapidly
growing city in Oromia region however, has a highest unemployment rate. Though unemployment
has different cause, its consequences are substantial and insightful. Unemployment in Burayu,
Predominantly among college under graduate’s people, presents an obstruction to economic
growth and economic development annual report 2007.Youth unemployment covers fundamental
variation in adverts group of young people, such as youth living in town, young female and how
enlightening completion of young people.
Unemployment in Burayu city is critical issue, especially youth unemployment is much more than
adult unemployment, and undergraduate youth unemployment is the big deal and reason for much
instability in Burayu.
Therefore, this examine major Challenges of Shegar city, youth unemployment by considering the
disparity between the demand supply side of labor market.

3
1.3 Research Question
1. What are the trends of youth unemployment undergraduate in Shegar city, Burayu town?
2. What are the causes of youth unemployment undergraduate stay without job Shegar city, in
Burayu town?
3. What are the policy instrument to overcome the deep-root youth unemployment
undergraduate in Shegar city, Burayu town?
1.4.1. General objectives.
The main objective of the study was to explore the major challenges of youth unemployment for
undergraduate from higher institution in Burayu.
1.4.2. Specific objectives of the study
1. To determine the trend of youth unemployment undergraduate in Shegar city, Burayu town.
2. To determine the cause of youth unemployment undergraduate stay without job Shegar city,
in Burayu town.
3. To assess the policy instrument to overcome the deep-root youth unemployment undergraduate
Shegar city, in Burayu town.

1.5. Significance of the study

Research inculcates scientific and inductive thinking and promotes the development of logical
habits of thinking which, has greatly increased in modern times. The increasingly complex nature
of business and government are focusing attention on the use of research in solving operational
problems. Research, as an aid to economic policy, has gained added importance, both for
government and business. Bearing these all concepts in mind, this research would help contribute
for government officials by its policy directives, for researchers as a source of secondary data, for
youths of Burayu in providing direction concerning to the issue of unemployment and for the
researchers also as a means of getting First Degree.

1.6. Scope of the study

The Scope of the study was focused to limit (reduce) the unemployment on Challenges or
economic development in Shegar city, Burayu Town.
Youth unemployment undergraduate is high due to many factors. Due to that reason, the study was
concerned to delimitate in terms of human resource and product, coverage from 2007-2021 to deal
with the facing problem.

4
1.7. Limitation of the study
Other than time and budget constraints, the researchers predicted that limitations listed below:
 Respondents did not accurately respond the research questions.
 Experience of the researchers in conducting research in the area
Inspire of all the challenges, the researchers exerted maximum effort to minimize the
aforementioned problems and this research was undertaken with the available time and budget.

1.8. Organization of the Paper

In general, the research paper consists five chapters. The first chapter involves sub-topics such as
backgrounds of the study, statement of the problem, purpose of the study, important of the study,
scope of the study limitation of the study, organization of the study. The second chapter deals with
literature review of internal audit role. The third chapter deals the methodology of the study. The
forth chapter consist of data analysis. The last chapter describes the summary conclusion,
recommendation, References and Appendix.

5
 CHAPTER TWO

LITRATURE REVIEW

2.1. Basic Concepts of Auditing

Concepts are abstractions derived from experience and observation and are designed to aid
understanding of the similarities with in a subject matter and the difference from other subject
materials. Much like engineering, physics, Accounting and Finance, and sociology and other
physical and social sciences, auditing is based up on a series of fundamental concepts.

2.2 Definition of unemployment

Unemployment refers to a situation where the persons who are able to work and willing to work
at the current market wage rate, fail to secure work or activity which give them income or a means
of livelihood.
Thus for a person to be categorized as unemployed two condition must fulfilled that person is
without a job and able to work, the person wants to have a job and is willing to work at current
market wage rate. Unemployment refers to the condition being unemployed or to the number
proportion of people in working population who are unemployed. There are three types of
unemployment those are:

2.3 Types of unemployment

There are three main types of unemployment – cyclical, structural and frictional unemployment.
In practice, these cannot be measured directly, and they can often overlap, but they provide a useful
way of thinking about unemployment. According to Reserve Bank of Australia, the three types of
unemployment defined as follows.

2.3.1 Cyclical unemployment

Recurrent unemployment occurring at particular phases of the business cycle, start with the down
turn from a boom. This unemployment is caused by a deficiency of aggregate demand and is
associated with a fall in the number of job vacancies.

2.3.2 Structural unemployment

Unemployment caused by a difference between the structure of employment vacancies and the
structure of unemployment, usually brought about by technological change. Unemployed persons

6
have different skills from those being demanded by employers or are located in a different place
from a potential employer.

2.3.3 Frictional unemployment

Short-period unemployment brought about by workers changing jobs. This minimum level of
unemployment, which coexists with job vacancies, occurs even when an economy is at full
employment and is a feature of all types of national economy. Labour market policies can reduce
this type of unemployment by making job information more available and accurate and by
subsidizing search costs.

2.4 Theoretical Review

The cultural influence that has been existed for long in Ethiopia the “Stretched household
arrangement” has captivated the effect of the problem of youth unemployment. The family of the
unemployed youth has vastly invested in the development of the child though all steps of life.
However this investment of the family in education to their children has no return for the family
and for this society at large because of the reason of lack of enough employment opportunity.
Similarly, investment in education using tax payers’ money, with the instrumentality of the
government is wasted if under graduates remained unemployed. The demand of the economy of
the country and the supply of trained human resources should be in line with the expenditure that
has been trading of to achieve the strategies plans of the economy.The purpose of this research is
conducted to investigate the necessity for creating labor market to solve the unruly, if not eradicates
it.

According to some studies, it has been recommended for the administration to invest on skill
acquiring education system “ Self-reliance and self-employment,” in young under graduates rather
than making youth under graduates to expect the government to absorb as a civil servant in public
services sectors. As an alternative of the practice of job-seeking the youth should be enabled to
acquire innovative skills through occupational exercise at their stay in the higher institutions.
2.5 The main Challenges for Youth unemployment under graduates in Burayu Town
Demand and supply side Challenges can be explained as a cause for under graduates youth
unemployment. From supply side Challenges, lack of qualifications for the required tasks such as
low qualification comes from either from low level of education or mismatch between the skill

7
and the labor market is one of the main reasons that exclude youth undergraduate labor force from
being employed.
In the other side of the reasons for being unemployed for those youth under graduates is
expectation of the employers about the under graduates in addition to the minimum wage and one-
side wage legalization that aggravate youth unemployment by reducing the demand for labor.
These both sides of Challenges lead to the rejection of many under graduates from the labor market
(African Development Bank, 2012)

2.6 The major of youth unemployment Shegar city, in Burayu town

Education system does not meet the need of labor market, Young people study for qualifications
for which there is not demand, Cost of work is too high, Large number of regulated
professionalism, Lack of effective programmes to help young people to obtain suitable
qualification and encourage employees to take on young people’s lack of jobs, Economic crisis,
High taxes on work, The existences of graph economy, Labor laws.

All of above Challenges are reduced by create job opportunity, Motivation program, Programmes
against drug addict and homeless, Fight racism, Fight discrimination, Fight structural unemployed
person, Fiscal and monetary measures in a financial crisis situation, Subsides for companies how
are reintegrating unemployment person.

2.7 Empirical Review

According to the job creation report, Ethiopian job creation commission (2019), Revealed that
youth unemployment undergraduate is increasing due to the reasons such as an oversupply of the
educated labour force unrealistic undergraduate expectations for the job market labour market
frictions.

2.8 Conceptual Frame work

According to the review, higher population growth and rural urban migration pays for the higher
rates of youth unemployment as the objective of job creation commission established in recent
years has trying to create employment opportunities from those fresh under graduates, it is not as
such efficient as proposed in their policy dements hence job creation requires the emergence of
new manufacturing industries and entrepreneurial capacity of the undergraduates that come out
the higher institutions.

8
Independent variable Dependent variables

Poor quality of Education

Youth
Rural to urban migration Unemployment
Higher skill mismatch undergraduate
Higher population growth

Fig 1:-Conceptual Frame work.

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 CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
In this chapter, the researcher focused on the description of the study area, research design,
research approach, the issues related to population, sample size and sampling techniques, types of
data and method of data collection, method of data analysis, validity and reliability and finally, the
researcher tried to include ethical issues in the process of conducting this research.
3.1. Location area of the study
The study was expressed in Shegar city, Burayu town which found in Oromia special zone
surrounding Finfinne which is located at the eastern of Finfinne at 9.4km from Finfinne city.
Burayu town which is bordered on the east by Finfinne city which separates from Sansus bus
station, from west Welmera, from northern by Sululta town and from south by Sebata town.
Among the various types of study designs, We will conduct a descriptive study, since it agree to
investigating effects of the independent variables Challenges of youth unemployment
undergraduate on dependent variables.

3.2. Research Design

The study included descriptive type of research which is expected to be taken place in Shegar city,
Burayu town.
By using open and close ended questions of different employees. The quantitative data were also
used for research purpose. The researchers was going assess Challenges of youth unemployment
for that undergraduate from higher institution in Burayu using descriptive analysis.
3.3 Source of data
In this study we were used both primary and secondary source of data.
3.3.1 Primary source of data

In this study we were used primary data for collecting data by using written and interviews
questionnaires’’.
3.3.2 Secondary source of data
Besides the primary sources of data from various secondary materials like written documents,
books, magazines and journals we were used in the analysis of the case study.

10
3.4 Sample size and Sample techniques
A sample size is a part of a population methodologically select for purpose of drawn conclusion
about population and its characteristics. The Challenges of youth unemployment undergraduate
Shegar city, is included in this study because they are the main target of the study. Burayu city
Administration was selected because the Challenges of serious youth unemployment Shegar city,
is the main issue.

The researchers were applied judgmental sampling. Judgmental sampling is a form of sampling in
which the population elements are selected on the judgment of the researchers. Type of non-
random sampling that enables the student who; are the researchers to gather data from the
respondents based on the judgmental of the sample to the student research.

Burayu Administration has six kebeles among this we select three kebeles those are Gefersa
Burayu, Leku Keta, Melka Gefersa random sampling.Out of 2000 youth unemployment in sample
questionaire were distributed study area. By Yamane formula.
𝑁
n=1+𝑁(𝑒)2

N 2000 2000
n= 2
= 2
= =333
1+N(e) 1+2000(0.05) 19

Where, N is Total Population size

n is sample size

e is error term

Therefor, 333 respondents were selected from Total Population (N= 2000) in Shegar city, Burayu
town.
3.5 Method of data collection
Primary data were collected from residents of Burayu town and officials of youth unemployment
undergraduate labor force and Gefersa Burayu, Leku Keta, Melka Gefersa by distributing of
questionnaire and asking interview and more on oral question and using secondary source of data
from books and magazines.
3.6 Method of data Analysis
The analysis of data was the process where one was trying to gather and present the data in such
way so that has a good structure and becomes easy to understand. In addition, data analysis was a
11
process of bringing order, structure and meaning to the mass of collected data. The goal of the
analysis is to be able to come up with valid conclusions based on the empirical data.
The analysis was anchored to the statement of the problem, research objective and research
questions. Thus, the quantitative and qualitative data were collected, coded, analyzed, interpreted
and presented
3.6. Methods of data analysis and presentation
After the relevant raw data collected from sources using data collection method, processing
including editing, classifying, and summarizing the collected raw data was undertaken by the
researcher. The data were analyzed by using descriptive statistics such as tables and percentage.
3.7 Validity and Reliability
According to Creswell (2014) validity is one of the strengths of qualitative research and is based
on determining whether the findings are accurate from the standpoint of the researcher, the
participant, or the readers of an account. Terms abound in the qualitative literatures that address
validity, such as trustworthiness, authenticity, and credibility. Therefore, for the purpose of this
research, the researchers were used different data collection techniques. In addition, the
questionnaire and interview questions were derived from the literature review, and approved by
advisors to confirm validity.
One of the main requirements of any research process was the reliability of the data and findings.
In the main, reliability manly deals with the consistency, dependability and reliability of “the
results obtained from a piece of research”. Obtaining similar results in quantitative research is
rather straightforward because our data are in numerical form. However, in qualitative approaches
to research achieving the identical results are fairly demanding and difficult.

12
 CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

Under this chapter the researchers presented, interpreted and analyzed the findings. The
researchers followed the objectives of the study to help in making a thorough analysis. The
researchers used tables to present and analyze the findings

4.1 Socio-demographic Characteristics of Respondents

The biographical data of both female and male youth of Shager City Administration were
considered to be significant in terms of evaluating causes of unemployment among youth in the
Burayu Town. The biographical data consisted of age, gender, marital status, educational level and
period of unemployment.

4.1.1 Age groups of respondents

Table 1: Age groups of respondents

Cumulative
Frequency Percent Valid Percent Percent

Valid 15-24 years 79 20.4 20.4 20.4

25-35 years 309 79.6 79.6 100.0

Total 388 100.0 100.0

.Source: Primary Data 2024

During the field study, it was found out that the biggest percentage of respondents were in age
bracket of 25-35 as shown by 79.6%, and 20.4% were of 15-24 years. This implies that respondents
in age bracket of 25-35 years actively participated in the study. These groups have relevant ideas
on answering the questionnaire presented to them well.

13
4.1.2 Gender of respondents
Table 2: Gender of Respondent

Valid Cumulative
Frequency Percent Percent Percent

Valid Male 251 64.7 64.7 64.7

Female 137 35.3 35.3 100.0

Total
388 100.0 100.0

Source: Primary Data, 2024

During the field study, it was found out that the biggest percentage of respondents were males as
shown by 64.7% whereas 35.3% of respondents were females, implying that males were the ones
who actively participated in the study.
4.1.3 Level of education of respondents
Table 3: Education status

Cumulative
Frequency Percent Valid Percent Percent

Valid Elementary 27 7.0 7.0 7.0

High school 108 27.8 27.8 34.8
Certificate
32 8.2 8.2 43.0
Diploma
95 24.5 24.5 67.5
Bachelor degree
Master’s Degree and 99 25.5 25.5 93.0
above 27 7.0 7.0 100.0
Total
388 100.0 100.0

Source: Primary Data, 2024

The biggest percentage of respondents were High school, diploma and Bachelor degree holders
as it was revealed by 27.8%, 24.5% and 25.5% respectively. This was followed by 8.2% of

14
respondents who were certificate holders, then 7.0% of the respondents were Elementary, again
7% of respondents were Master’s Degree and above holders.

4.1.4 Marital status

Table 4: Marital Status

Frequency Percent Valid Cumulative

Percent Percent

Valid Single 132 34.0 34.0 34.0

Married
204 52.6 52.6 86.6
divorced
Other 48 12.4 12.4 99.0

Total 4 1.0 1.0 100.0

388 100.0 100.0

Source: Primary Data, 2024

From table 4, it can be seen that 52.6% of respondents were married followed by 34% of
respondents who were single whereas 12.4% of respondents had divorced. Therefore, it was
indicated that respondents who were married actively participated in the study.
4.1.5 Period of unemployment
Table 5: Period of unemployment

Frequency Percent Valid Percent Cumulative Percent

Valid 1-2 years 172 44.3 44.8 44.8 70.1 80.5

3-4 years 97 25.0 25.3 97.1
5-6 years 40 10.3 10.4 100.0
7 years and above 64 16.5 16.7
5 11 2.8 2.9
Total
384 99.0 100.0
System
Missing 4 1.0
Total 388 100.0
Source: Primary Data, 2024

15
During the field study, it was found out that the biggest percentage of respondents were in Period
of unemployment bracket of 1-2 years as shown by 44.3%, and 25.0% were of 3-4 years. 16.5%
were of 7 years and above, and 13.1% were of 5-6 years.
The next section, that is, the quantitative analysis of the data will provide greater insight into the
responses to the questionnaires administered to respondents.
4.2 Causes of unemployment among youth
The study objective one was set to identify the causes of youth unemployment in Shager city
Burayu town.
The quantitative and qualitative analysis together gives a brief incite of the findings. Open-ended
questions are free-form survey questions that allow respondents to answer in open-text format to
answer based on their complete knowledge, feeling, and understanding.
Based on this, 5 open ended questions were prepared and interviewed 3 individuals from Burayu
administration who are from Labor and Skills desk. We conducted an interview which is important
to reinforce our earlier research and to understand what youth unemployment looks like from a
professional perspective.
As the responses from the 3 Keble’s were somewhat similar, we had summarized all responses to
each question and incorporated in the findings of the quantitative result for triangulation.
4.2.1 Lack of Quality Education (LQE)
Table 6 Lack of Quality Education (LQE)

Frequency Percent Valid Percent Cumulative Percent

Valid 4 1.0 1.0 1.0 1.0
Strongly Disagree 4 7.2 1.0 2.1
Disagree 28 20.4 51.0 7.2 9.3
Neutral 19.3
79 20.4 29.6
Agree 100.0
198 51.0 80.7
Strongly Agree
75 19.3 100.0
Total
388 100.0

Source: Primary Data, 2024

From table 6, it was found out that the majority of the respondents, that is, 51.0% in this study
agreed that Lack of Quality Education one of the problems to find a job. 19.3% of respondents
strongly disagreed with this view and 20.4 % of respondents were not sure whereas 7.2% of

16
respondents strongly disagreed, implying that the youth in Shager city Burayu town
Administration known that Lack of Quality Education is the main problem to find jobs. The
interview result also indicated that there is a high correlation between the quality of education and
youth unemployment. The education situation in Ethiopia is mostly theoretical and there is no
action-oriented education, so it is an obstacle to enter the job market. Since it is not task-oriented
in technology, they will not be competitive when it comes to work. The young people will not be
competitive because they learn theoretical, so they will have difficulty in getting a job.

4.2.1 Population Growth (PG) Table

Table 7 population growth

Frequency Percent Valid Cumulative Percent

Percent
Valid 4 1.0 1.0 1.0 1.0 1.0
Strongly 4 3.1 3.1 2.1
Disagree 12 5.2
Neutral 47 12.1 12.1 17.3
Agree 151 38.9 38.9 56.2
Strongly Agree 170 43.8 43.8 100.0
Total 100.0 100.0
388

Source: Primary Data, 2024

4.2.3. Lack of Job Creation (LJC)
Table 8 Lack of Job Creation (LJC)

Frequency Percent Valid Percent Cumulative Percent

Valid 0 4 1.0 1.0 1.0
Disagree 40 10.3 10.3 11.3
Neutral 135 34.8 34.8 46.1
Agree 162 41.8 41.8 87.9
Strongly Agree 47 12.1 12.1 100.0
Total 388 100.0 100.0

Source: Primary Data, 2024

17
Table 8 indicated that 41.8 % of respondents agreed that youths in Shager city Burayu town are
unemployed due to unserious job offers or lack of job creation. While 34.8% of respondents were
not sure, 12.1% strongly agreed and 10.3% of respondents disagreeing with this opinion, implying
that youth in Shager city Burayu town are unemployed due to unserious job offers. The interview
indicated that because when they study, they only learn the theoretical part, so we believe that
most of the young people do not have the skills to create a job. Because in our country, if most of
the young people are given vocational education along with their education while they are still in
school, it will increase their skills or knowledge.

4.2.4 Skills Mismatch (SMM)

Table 9: Skills Mismatch (SMM)

Frequency Percent Valid Cumulative Percent

Percent

Valid 0 4 1.0 1.0 1.0

Disagree 15 3.9 3.9 4.9

Neutral 154 39.7 40.0 44.9

Agree
168 43.3 43.6 88.6
Strongly
44 11.3 11.4 100.0
Agree
385 99.2 100.0
Total
Missing 3 .8
System
388 100.0
Total

Source: Primary Data, 2024

From table 9, it can be seen that 43.3% agreed that youth do not have the appropriate qualifications
and skills required by most employers. While 39.7% of the respondents were neutral to this
opinion, 11.3% of respondents were Strongly Agree, 3.9% disagreed. This implies that youth do
not have the appropriate qualifications and skills required by most employers. This is in line with
the information obtained from the interview that job you graduated from and the job you are
18
working on does not match. And this is most common in the government office, where your degree
and the work you do are never connected. Young people in higher education institutes are not
assigned by their own choice that a person, for example, wants to study accounting, may be
assigned a language, there is less chance of getting a job without wanting it. Most of the work that
I do and what I have learned are not similar, and as a result, what I learned and what I do are not
related, They don't have it because entrepreneurship means bringing a new idea and turning it into
action. Most of the youth in our country are educated in theory because they don't learn practical
education.
4.3 Effect of unemployment among youth
Table 10 Effects of Unemployment (EU)

Frequency Percent Valid Percent Cumulative Percent

Valid 0 Neutral 4 1.0 1.0 1.0
36 9.3 9.3 10.3
Agree 163 42.0 42.0 52.3
Strongly 185 47.7 47.7 100.0
Agree Total 388 100.0 100.0

Source: Primary Data, 2024

Table 1 to 10 shows the consequences of youth unemployment.
Table 11 In Shager city Burayu town of the youth are unemployed and have become drug and
alcohol addicts.
Valid Cumulative
Frequency Percent Percent Percent
valid 16 4.1 4.2 4.2
Strongly 24 6.2 6.3 10.4
Disagree 14 3.6 3.6 14.1
Disagree 49.2
135 34.8 35.2
Neutral 100.0
195 50.3 50.8
Agree
384 99.0 100.0
Strongly Agree
Total
Missing System 4 1.0
Total 388 100.0

Source: Primary Data, 2024

19
From table 11, it can be seen that 50.3% of the respondents strongly agreed that unemployment
among youth leads to drug and alcohol addicts. This was also supplemented by 34.8% of the
respondents who agreed implying that unemployment among youth leads to drug abuse.

Table 12: Being unemployed for a long time at a young age leads to a lack of work experience and skills

Frequency Percent Valid Percent Cumulative

Percent
valid 20 5.2 5.2 5.2
Disagree 19 4.9 4.9 10.2
Neutral 145 37.4 37.8 47.9
Agree
200 51.5 52.1 100.0
Strongly agree
missing 384 99.0 100.0
system 4 1.0

Total 388 100.0

Source: Primary Data, 2024
From table 12, it can be seen that 51.5% of respondents strongly agreed that being unemployed for
a longer time at a young age leads to a lack of work experience and skills. 37.4% of respondents
agreed while 4.9% of respondents were not sure, 5.2% disagreed with this view implying that
being unemployed for a longer time at a young age leads to a lack of work experience and skills.

Table 13: Youth unemployment affects the economic development of the country

Cumulative
Frequency Percent Valid Percent Percent

valid 8 2.1 2.1 2.1 4.2

Strongly Disagree 8 2.1 2.1 5.2
Disagree 4 1.0 1.0 38.5
Neutral 100.0
128 33.0 33.3
Agree
236 60.8 61.5
Strongly Agree
384 99.0 100.0
Missing system
4 1.0

Total 388 100.0

Source: Primary Data, 2024

20
From Table 13, majority of respondents indicated by 33.0% agreed that unemployment among
youth leads to reduce the economic development of the country. This was compared with 60.8%
of respondents who strongly agreed, 1% were not sure, 2.1% disagreed and 2.1% strongly
disagreed with this view. This implies that unemployment among youth leads to reduce the
economic development of the country.
Table 14: Youth unemployment creates additional costs for the government

Valid Cumulative
Frequency Percent Percent Percent
valid 12 3.1 3.1 3.1
Strongly 28 7.2 7.3 10.4
Disagree 24 6.2 6.3 16.7
Disagree 49.7
127 32.7 33.1
Neutral 100.0
193 49.7 50.3
Agree
384 99.0 100.0
Strongly Agree
4 1.0
Total
388 100.0
System
Total

Source: Primary Data, 2024

In table 4.14, 32.7 % of respondents agreed that youth unemployment creates additional costs for
the government. 49.7% of respondents strongly agreed and 6.2% were not sure while 3.1% and
7.2% of respondents strongly disagreed and disagreed respectively with this view. Thus, this
implies that youth unemployment creates additional costs for the government.

21
Table 15 Youth unemployment leads to high crime rates
Cumulative
Frequency Percent Valid Percent Percent
Valid Disagree 12 3.1 3.1 3.1
Neutral 8 2.1 2.1 5.2
Agree 142 36.6 37.0 42.2
Strongly Agree 222 57.2 57.8 100.0
Total
384 99.0 100.0
System
Missing 4 1.0
Total 388 100.0

Source: Primary Data, 2024

From table 15, it was found out that 57.2% of respondents strongly agreed that unemployment
among youth leads to creation of high crime rates. Whereas 36.6% of respondents agreed, 3.1%
disagreed with this view. 2.1% were not sure. Thus this implies that unemployment among youth
leads to high crime rates.

Table 16: Youth unemployment affects the political stability of a country

Valid Cumulative
Frequency Percent Percent Percent
valid 4 1.0 1.0 1.0
Strongly 4 1.0 1.0 2.1
Disagree 4 1.0 1.0 3.1
Disagree 36.7
129 33.2 33.6
Neutral 100.0
243 62.6 63.3
Agree
384 99.0 100.0
Strongly Agree
4 1.0
Missing system 388 100.0
Total

Source: Primary Data, 2024

From table 16, it can be observed that 62.6% of respondents strongly agreed that youth
unemployment affects political stability of a country. Also this was complimented by 33.2% of
respondents who agreed with this view. Only 1% of respondents strongly disagreed, disagreed and
neutral, implying that youth unemployment affects political stability of a country.

22
 CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATION

Under this chapter, the researchers discussed and gave conclusion to the major findings of the
study, in light of the objectives and research questions. The researchers also presented some
recommendations for causes of unemployment among youth in Burayu town.
5.1 Summary

Concerning the first objective, it was revealed that education of youth in Shager city of Burayu
town is too theoretical. This was indicated by the majority 70.9% who agreed and strongly agreed
that lack of quality of education is the cause of youth unemployment. School system is far too
theoretical and is not preparing the students in an adequate way to find a job after graduation as
they lack employable skills, even though the job falls into their field of studies. This well
complimented by ILO (2012) who contends that in “African” school system is far too theoretical
and is not preparing the students in an adequate way to find a job after graduation as they lack
employable skills, even though the job falls into their field of studies.

It was revealed that lack of modern market-oriented business skills has reduced youth job
opportunities. The lack of need-based placement services has failed to bring potential employers
and employees. In addition, it was revealed that youths in Burayu town are unemployed due to
poor entrepreneurship skill. It was also revealed that a mismatch between the professions is the
cause of unemployment makes it more difficult for youth to succeed in job markets.

Furthermore, it was revealed that the increase in population does not match the job opportunities
that are created, which has caused the youth to remain unemployed.

As far as the second objective is concerned, it was revealed that being unemployed for a longer
time at a young age leads to a lack of work experience and skills and being unemployed for a
longer time at a young age leads to a lack of work experience and skills. This was in accordance
with Sarah Ayres (2013), youth unemployment creates negative long term effects for both the
individual youth as well as for a country as a whole because being unemployed for a longer time
at a young age leads to a lack of work experience and skills gathering during this time.

23
It was revealed that youth unemployment affects the economic development of the country. The
majority youth unemployment affects the economic development of the country. This was well
tackled by Ayres (2013), large number of youth and large youth unemployment has strong negative
effects on the economic development of the country in the short, middle and long run.

It was revealed that youth unemployment creates additional costs for the government. In addition
to this it was revealed that unemployment among youth leads to creation of crime rates. This was
indicated by the majority unemployment among youth leads to creation of crime rates. All these
views were in accordance to Ayres (2013) who posited that youth unemployment also creates
additional costs for the government as it has to deal with consequences of youth unemployment
like increased crime rates.

While the third objective is concerned, it was revealed that youth unemployment affects political
stability of a country. This was in line with Azeng &Yogo (2013) who concluded that youth
unemployment has a significant negative effect on the political stability in countries, especially
developing countries.

It was revealed that unemployment among youth leads to crime and violence amongst youth. This
was indicated by the majority 93.8%of respondents strongly agreed that unemployment among
youth leads to crime and violence amongst youth. This was in line with Deviren, P.N. & F
Daşkıran, (2014) who straightforward economic reasoning suggests that unemployment is an
important determinant of the supply of criminal offenders and hence, the overall crime rate.
Moreover, the information obtained in the interview, the problem of education quality and the fact
that the education is focused on theory instead of being practical can be cited as the main problem
for youth unemployment.

Another testified that the increase in population especially the migration from rural to urban areas
to find work .reduces the chances of young people to find job, and this was found to be the same
as the response given by young people.

On the other hand, the response obtained from the interview showed that the lack of skills required
by employers, as well as the lack of skill matching has its own contribution to job loss. In line with
the response given by the youth, it has been observed that youth being out of work easily exposes

24
 them to various bad habits, such as crime, alcoholism, and illegal activities. In general, the
qualitative results of this study were found to support the quantitative results.

One of the key element in ensuring business success is to build a strong and efficient internal
auditing system, especially in banking venture, efficient customer service are base to remain
business in operation and organizing an effective internal auditing system for safeguarding
resource of the organization. The objective of this study is to assess quality of internal audit work
and importance of internal auditing system. In order to achieve, the planned objective the method
of data gathering are held with the internal auditors.
5.2. Conclusion

The main purpose of the research was to identify the causes of unemployment among youth in
Shager city Burayu town, and the results showed that unemployment among youth in Shager city
Burayu town administration is a result of skill mismatch between the education system and
employers expectations; lack of entrepreneurship; inadequate job, mismatching and population
growth, The Consequences of Unemployment Are;
Crime: drug and alcohol usage, the increase of commercial and etc. It also answers the research
questions of the economic and social effects of unemployment.

5.3. Recommendation
Different reasons of unemployment seem to affect different areas in Ethiopia and it is therefore
recommended to consider the following;
• The government should create more jobs in regions to prevent migration;
• Education system to be changed from theoretical to more practical;
• Youth should get a chance to get some experience in entrepreneurship;
• Government should facilitate finance to youth to run their own small business and encourage them
to work for their own businesses to become successful; We recommend the following issue based
on the finding and analysis that have made.

25
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 APPENDIX

Rift Valley University Burayu Campus

Faculty Of Business A And Social Science
Department Of Business Management

Dear Respondents:

The purpose of this questionnaire was collected data on Youth Unemployment undergraduate
problem in Shegar city, Burayu town and regarding confidentiality it is required only for academic
purpose and your respective response will be kept in confidentiality.

Personal Information

Put tick mark  in the appropriate box for each question.

 Sex

Male  Female 
 Age

18 – 20  26 – 30  39-45 

21 – 25  31 – 38  > 45 
 Marital status

Single  Divorced  Married  Widowed 

 Education level

Grade 10th – 12th  Degree  Diploma

Certificate  Above degree 

 Years of services
1. year  3-5 year 
2. year  > 5 year 
 Do most youth has their own job? Yes  No
 How do you evaluate the knowledge of unemployment?

High  Medium Low

 Who is more responsible for unemployment?
29
 Youth  Any Governmental body Family Society 

A survey of unemployed youth in Shager city Burayu town administration

Please indicate to what extent you agree or disagree with the statements given under.
While selecting please put mark (X) and give only one response per statement.

Numbers indicate 5= Strongly Agree 4=Agree 3=Neutral 2=Disagree 1= Strongly

Disagree

No. Statement 1 2 3 4 5
Lack of Quality Education LQE
1 Lack of quality of education is the cause of youth unemployment
2 The reason for unemployment is that teachers have limited
knowledge of the subject they teach

3 The fact that the education system is theoretical rather than

practical is the cause of youth unemployment.
4 The reason for youth unemployment is the lack of material in
school that is suitable for students' knowledge and background
5 The lack of student-centered approach to education has reduced
self-confidence
Population Growth PG
6 Population growth has contributed to the unemployment of
young graduates
7 Rural-urban migration has its own contribution to the
unemployment of young graduates
8 The increase in population has narrowed the job competition
9 The increase in population does not match the job opportunities
that are created, which has caused the youth to remain
unemployed
Lack of Job Creation LJC
10 The youth of Burayu town do not know where to find work
11 The youth of Burayu town do not like to do some of your work.
12 Due to poor entrepreneurship skills, young people remain
unemployed
13 Young people in Burayu have a negative attitude towards work

14 The government has not created enough job opportunities for

young graduates in Burayu
Skills Mismatch SMM

30
15 I do not have the qualifications and skills required by most
employers
16 The poor background of many young people in Burayu town is
cited as a reason for not being effective at work
17 A mismatch between the profession and the labor market is the
cause of unemployment
18 In comparison, there is little or no payment for other youths
19 Young people's lack of modern, market-oriented business skills
has reduced their job opportunities
20 The lack of need-based placement services has failed to bring
potential employers and employees together
Effects of Unemployment EU
21 In Burayu town, most of the youth are unemployed and have
become addicted.

22 Being unemployed for a long time at a young age leads to a lack

of work experience and skills
23 Youth unemployment affects the economic development of the
country
24 Youth unemployment creates additional costs for the
government
25 Youth unemployment leads to high crime rates
26 Youth unemployment affects the political stability of a country
If you have anything to say
_____________________________________________________________
_________________
________________________________________________________________
______________
________________________________________________________________
______________
________________________________________________________________
__________

Thank you for your cooperation!

31