UNIVERSITY OF NIGERIA ENUGU CAMPUS COLLEGE OF MEDICINE DEPARTMENT OF MEDICINE & SURGERY A TERM PAPER PRESENTED IN PARTIAL FULFILLMENT

OF THE REQUIREMENT OF THE COURSE: G.S. 208 (HUMANITIES)

TOPIC: CHALLENGES OF YOUTH UNEMPLOYMENT IN NIGERIA

PRESENTED BY IFEDIGBO NWAMAKA O.D 2004/129759

LECTURER:

REV. FR. BARR. P.U. EZEANYA DECEMBER, 2009.

TITLE PAGE CHALLENGES OF YOUTH UNEMPLOYMENT IN NIGERIA

DEDICATION I wish to dedicate this work to GOD ALMIGHTY who has been my source and my help in the research and completion of this work.

ACKNOWLEDGEMENT I want to acknowledged the efforts of my Lecturer Rev. Fr. Barr. P.U. Ezeanya, my family and friends who have contributed in one way or the other to make this work a successful one. Special thanks to my friend Nneka for her help.

PREFACE Millions of Nigerian youths who graduate from the Univiersities, Polytechnics and other institutions can neither find job, appropriate avenues to positively utilize their youthful energies, nor can they find use for their time. This segment of the populace is at the height of their physical and mental powers. Ideally, they should form the productive foundation of the economy of any nation, but in Nigeria, you find them roaming the streets in search of livelihood and employment and every day, their frustrations keep building up, they cannot but be angry with a society that seems not to care about them.

TABLE OF CONTENTS

CHAPTER ONE INTRODUCTION According to Maisel, (1982), Unemployment is the number of workers who are unsuccessfully looking for jobs. Spencer (1974) defines unemployment as all people 18 years of age or older who are not working and are actively seeking for jobs. The 1982 International Labour

Organization (ILO) resolution defines the unemployed as people above a specified age, who during the reference period were without work, and were seeking work. Unemployment is a hotly talked about economic problem. The employed, politicians, social critics, students, the ordinary/layman discuss it. It id often quoted in newspapers, magazines, radio and television programmes as well as in government statistical documents. As a major economic problem, Bowden, E. sees the situation as a waste of variable human and other resources. It frustrates and degrades people, leads to poverty; lack of self-respect, family break down, crime and social and political stress. If unemployment gets bad enough it spells

collapse for the economic system. Sooner or later the hungry will widely revolt. According to Dernburg (1985) unemployment is a hideous disease Obviously, we want people to be gainfully employed so that they can support themselves and fell that they are contributing members of society. According to Lipsey and Steiner (1981), the social and political importance of the unemployment rate is enormous it produces economic waste and causes human suffering. If a fully employed

economy with a constant labour force has 100 million people willing to work in 1980 their services must either be used in 1980 or wasted. When the services of only 90 million are used,10 percent of the force will be unemployed and the potential 1980 output of 10 million workers is lost forever.Also, there is the human cost of hardship and misery that can be caused by prolonged periods of unemployment. We can say that unemployment is responsible for some of the very dehumanizing problems in the society. Loss of income, frustration, poverty, crime and open revolt are some of the fallouts of unemployment. This not withstanding, it is important to point out that no matter what

policy makers do, some unemployment must exist in our economy. This is because the resources needed to provide employment to everyone that is willing to work are limited in supply. What is totally wrong is continued and chronic unemployment. However, efforts have continued to be made to improve the physical environment for growth of employment.

CHAPTER TWO TYPES OF UNEMPLOYMENT Frictional Unemployment: This type of unemployment results from the general flexible nature of the workplace whereby an employable person is free to enter and leave as and when he wants or as may be stipulated by the existing jobs law. New people enter the workforce as some are leaving in search of better jobs in other job places. Some people stop searching for jobs because of frustration for not finding any after long period. Structural Unemployment: For every economy growth is seen in the context of its ability to use the available resources to produce goods and services that are in demand in what is called full employment output level. In this context, structural unemployment is caused primarily by displacement of some firms due to rising competition in their industries. Here too is a situation of declining demand for the products of some industries. Example is the farming sub-sector where hoes, cutlasses, and similar manually operated farm implements have virtually been replaced by mechanical devices such as weeders and tractors.

Clinical Unemployment:

This is unemployment resulting from

insufficient aggregate demand at full employment output hence causes factors to be retrenched or remain unused. This type of unemployment leads first to inflation which later may if not checked, graduate to recession and to depression. This is why it is often referred to as mass unemployment because the situation usually leads to massive retrenchment and compounded by those who cannot find jobs due to frictional and structural changes in the economy. Technological Unemployment: Is similar in characteristics to structural unemployment. One major difference is that under technological unemployment people are displaced by technology machines and equipment installed to take the jobs of individuals. The result is that more and more people will lose their job as soon as firms start acquiring new generation machines that require less human effort because of their high land of efficiency. To eliminate this type of unemployment is highly impossible because of the global technological dynamism. Even by

increasing total spending will not eliminate this type of unemployment.

Regional Unemployment:

This type of unemployment occurs when

the basic industry or industries in an area start declining. This may be caused by falling demands, technological displacement etc. e.xamples are the hitherto thriving groundnut plantation in the North, palm produce of the East, and cocoa plantation of the west. Production of these products has hit the bottom. With the exception of cocoa which generates very meager foreign exchange because of reduced production, the rest are no longer exported, at least for now. Another is the assembly plants in

Nigeria which nearly went into oblivion. Workers in these areas are in constant fear of retrenchment. Search Unemployment: Search unemployment arises out of the human characteristics of insatiation. A situation where an individual rejects a job for which he is qualified and fitted because he feels the pay is not commensurate with the job. So he keeps searching for another job that will meet his financial demand. Another is a situation where an

individual is offered a lower level job in quiet a different area but decides not to accept the job, believing he would soon get the right type of job and pay.

Residual Unemployment: Apart from old age, there are times persons who were active and highly productive are found to be retrogressing or performing below acceptable productivity level. They will gradually reach a state of inefficiency that will serve the organization the best to retrench such people. This type of unemployment is often caused by sudden death or social problems, disenchantment with the work environment and similar problem. This can be corrected by solving the problem and instituting a retraining programme.

CHAPTER THREE 3.1 1. CAUSES AND EFFECTS OF UNEMPLOYMENT Rising Population: The population of Nigeria, as in many African

countries has been rising faster than the job available. This is seen in both the rising birth rate and the falling death rate figures quoted by the National Population Commission. 2. Changing Composition of the Labour Force: The rising population

has resulted in more people entering the labour force. Primary, secondary, and tertiary schools drop outs including women and some other groups that before now were dependents on heads of their households are swelling in number, thereby aggravating unemployment. 3. Persistent/Unabating Economic Hardship: Since the 1980s the

economy has moved from rising inflation to mild recession to chronic recession and is now in a depression. As days pass by, more households find that they cannot cope with the increasing difficulty of meeting their needs largely caused by declining national fortune. 4. Neglect of Agriculture: For an economy to experience growth

there is need for government to put in place enabling environment that

would mobilize all the sectors of the economy. Before the discovery and exportation of petroleum products in Nigeria in 1962, the mainstay of our economy was agriculture. 5. Migration from other counties It is common for people to move from their country to other countries where they believe their economic lots will be enhanced. In West Africa, people come to Nigeria for better living. 6. Embezzlement of Public Fund Nigeria is blessed with both human and material resources through which it is expected to generate public funds. Foreign exchange receipts end up in private pockets and in personal foreign accounts. 7. Increase in Educational Institution: Since the 1970s, the various

levels of education has witnessed rapid growth in number of people in primary, secondary and tertiary levels of education at slightly above 22 million without exponential increase in job availability.

3.2

EFFECTS OF UNEMPLOYMENT

Reduced Potential Revenue For Government: Tax is one major source of government revenue individual (or personal) corporate and other forms of taxes help to beef up government finances for solving problems. Fall In National Output/Income: Employers acquire additional resources to achieve a given level of output occasioned by increasing demand. On its part, increasing demand is a function of growing economy, part of which is caused by growing employment. High Dependence Ratio: At periods of high unemployment many homes will have large numbers of dependents. In a society, dominated by large-sized young households it is evident that the financial burden will be too much on bread winners. its numerous financial needs and economic

High Level Of Spending: Unemployment drains past and current savings of house holds. A family of five with one or two bread winners will be catering for the whole family. Low investment: Investment has been shown as dependent on savings when a consumer spending is high little will be saved and investment will fall. If the multiplied effect of reduced saving and investment is considered it will result in furthering poverty. Fall In Standard Of Living: How saving leads to fall in investment. Increased investments mean better quality goods at reasonable prices. Brain drain: The present craze to travel to Europe and America is due to the worsening economic situation in the country.

Increase Rural- Migration: Lack of infrastructural facilities in rural areas coupled with a virtual lack of income earning opportunities makes rural dwellers to move to urban cities in search of better life. Increase In Crime/Social Vices: Unemployment has shown to be a frustrating and degrading situation. A situation where when people are leaving home for work, you are at home or wandering aimlessly. Agents Of Destabilization: As is stated above, frustration can lead one astray thereby doing things he normally would not do. 3.3 1. 2.
3.

WAYS OF REDUCING UNEMPLOYMENT Increasing investment climate Reducing population growth rate development of rural/urban cities curbing illegal immigration proper monitoring of our ports encouraging investment in agriculture

4. 5. 6.

7. 8. 9. 10.

encouraging self-employment having a self national policy on employment establishment/encouragement of labour intensive industries national employment schemes

CHAPTER FOUR CONCLUSION The Director of the National Planning Commission of Nigeria, Ayodele Omotoso in Nigeria, who was in the audience, said that Youth unemployment in Nigeria is 60 to 70%, and the labor market can only absorb 10% of new job entrants. According to the Regional Vice

President Ezekwesili, youth employment needs to be addressed from many entry points. The profile of unemployment of youth has to enter the way we think, just as gender has. Youth need to be effectively targeted in everything we do, so that they will have a stake in the future.

REFERENCES Chukwu Christopher Obinna (2000) Macroeconomics A practical Approach. Ray Morphy (2008) Nigeria: Youth Unemployment, Poverty a Time Bomb for country.