SIMAD UNIVERSITY

. ‫جــامــعـــة ســـيــمــد‬

Unemployment
 
Group Members
1. Hafsa Dahir Aweis
2. Lul Hassan Ali
3. Ikram Ali Abdi
4. Sumaya Mohamud
5. Abdullahi Hirsi Isak
6. Mohamed Salad Barre.
Research Paper submitted as part of the
All Skills Project for the English Skills Program (Mastery)
Mogadishu, August, 2022
Course Name: ESP10-H
09/27/2022
Instructor: Mohamed
.
Ali 1
Contents
 Introduction

 Types of Unemployment

 Causes of Unemployment

 Effect of Unemployment

 Unemployment in Worldwide

 Unemployment In Somalia

 Policy to reduce Unemployment

 Recommendation
 Video

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 Introduction

Unemployment is a term referring to individuals who are employable and

actively seeking a job but are unable to find a job. Included in this group are
those people in the workforce who are working but do not have an appropriate
job. Usually measured by the unemployment rate, which is dividing the
number of unemployed people by the total number of people in the workforce,
unemployment serves as one of the indicators of a country’s economic status.

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 Cont..

Unemployment is a key economic indicator because it signals the ability (or

inability) of workers to obtain gainful work and contribute to the productive
output of the economy. More unemployed workers mean less total economic
production.

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 Types of Unemployment 

1 2 3 4

Frictional Structural Cyclical Seasonal

Unemployment Unemployment Unemployment Unemployment

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 Cont..

• Frictional Unemployment: Frictional unemployment occurs due to

temporary transitions within the employees' lives. For example, the
workers move to a new town and have to search for a new job .
• Structural Unemployment: Structural unemployment occurs due to a
mismatch between the types of available employment and the
workers' demographics.
 Cont…

• Cyclical Unemployment: Cyclical unemployment occurs due to reduced

demand for services and goods within the economy; thus, the business fails to
offer employment opportunities. This form of unemployment mainly happens
during recession periods when consumers decrease their spending and elevate
their savings due to fear that conditions might worsen.
• Seasonal Unemployment: Seasonal unemployment occurs due to the
operation of different industries through seasons whereby the labor force is
available at some seasons and unavailable in others .
 Cont…

.
 Causes of Unemployment
• Low level of education It is a known fact that less well-educated people have higher unemployment
rates than better educated people. A possible explanation of this finding is job competition:
employers prefer higher over lower educated workers for jobs that were previously occupied by
lower-educated employees. As a consequence, the lowest educated become unemployed.
• Homelessness Unemployment is one of the leading causes of homelessness around the world
around the world. Unemployment happens because of a lack of employable skills or because of
intense competition in the marketplace. If you are homeless, chances for getting a job are quite low
since you do not have a permanent residential address, which in turn implies that the
communication between you and potential employees may be quite hard.
 Cont…

• Lack of motivation Some people may also just have not enough motivation to
work at a job. These people may enjoy watching TV or playing video games
all day long instead of working. This lack of motivation for work may be
especially high for people who only have a low level of education and who
would only be able to earn quite low wages, which makes it unattractive for
them to work, especially if there is sufficient social security to cover their
basic expenses.
 Effect of Unemployment

• Individual: people who are unemployed cannot earn money to meet their financial obligations.
Unemployment can lead to homelessness, illness, and mental stress. It can also cause
underemployment where workers take on jobs that are below their skill level.
• Social: an economy that has high unemployment is not using all of its resources efficiently,
specifically labour. When individuals accept employment below their skill level the economies
efficiency is reduced further. Workers lose skills which causes a loss of human capital.
• Socio-political: high unemployment rates can cause civil unrest in a country
 Unemployment in Worldwide

● Unemployment is a problem that many countries around the globe have yet
to solve completely
● Even the countries deemed to be most stable are suffering
● In recent years, the global pandemic brought about huge losses
● Many people lost their jobs and were evicted
● Unemployment also has an impact on productivity
● Unemployment can seriously damage a country’s economy
 Unemployment in Somalia
● Clan and cultural prejudices also have a large part to play in who gets a job
● Despite a large majority of Somalia being unemployed the population is rapidly increasing .
● It is estimated that each woman gives birth to approximately 6.2 children
● This however is steadily changing as more and more Somali citizens receive an education
and become more knowledgeable
● This also helps the youth to find and create work
● 67% of Somali youth are unemployed
● Somalia has had many setbacks during its history

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 Policy to reduce Unemployment
 Limit the number of work permits issued to foreign workers .
the federal government of Somalia has put in place certain work permit conditions
on the employment of foreign workers. Doing so would drastically reduce the
number of foreign workers presently holding jobs that could be offered to local
Somalis. Foreigners, on the other hand, should be only sought for high skilled jobs
that cannot be filled otherwise. These conditions must be strictly applied to UN
agencies, international NGOs and business enterprises .

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 Cont..
 Encourage the set-up of medium-sized manufacturing companies
Bring back opportunities, the federal government of Somalia must
encourage the local import companies to set up medium-sized
manufacturing plants in Somalia through creating incentives for them,
which in turn would create more employment opportunities for local
Somalis .

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 Cont..
 Enhance the skill set of graduates
This policy has to do with identifying the skill gap existing in a country as a whole and
by sector, then opening career development institutions for those seeking employment.
More importantly, this also involves reviewing university programs to incorporate the
required skills and knowledge into the curriculums.

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 Recommendation
In order to fight unemployment, it is crucial to
 improve education levels of people so that it will be easier for them to find a job .
 an intuitive measure to fight unemployment is to create jobs. Jobs can be created in several
different ways.The creation of jobs often involves raising the incentive for companies to
employ people and open branches in weak economic regions .
 Giving firms financial incentives like tax advantages or other incentives to offer jobs for
the local population.

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 END

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