1.1 Introduction
Unemployment is a social as well as economic issue which every nation deals with regularly but differently. In fact, the classical economists averred that there can never be a situation of total employment in any economy (Ogunyomi & Oginni, 2013). However, situation in Nigeria has assumed an unimaginable proportion. Statistics shows that almost 75% of those who are able and willing to work, cannot find gainful employment especially among the graduates/ school leavers. The situation has become very bad and appears to have defied any remedy. Furthermore, structural unemployment is the type of unemployment occurs when there is a change in the structure of an industry or the economic activities of the country. This type of unemployment is due to the deficiency of capital resources in relation to their demand.
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitation of the study and Definition of terms.
1.2 Background of Study
Over the years, Graduate employment has been a crucial issue in Nigeria because the graduate youths constitute a major part of the labour force and they have innovative ideas, which among other factors are important in the development process of the country. A large proportion of the youths however are unemployed. The negative consequences include psychological problems of frustration, depression, hostility and gradual drift of some visible unemployed youths in to all manner of criminal behaviour.
According to Chigunta (2002:89) these large-scale unemployment among graduate is encouraging the development of street youths in Nigeria. The street youths, denied of legitimate means of livelihood, grow up in a culture that encourages criminal behavior in rural and urban areas where they engages in various activities such as petty trading, casual work, stealing, pick pocketing prostitution, touting and other illegal activities.
According to Fajana (2000), unemployment refers to a situation where people who are willing and capable of working are unable to find suitable paid employment. It is one of the macro-economic problems which every responsible government is expected to monitor and regulate. He stated further that the higher the unemployment rate in an economy, the higher would be the poverty level and associated welfare challenges.
It is an indisputable fact that one of the topical issues confronting Nigeria is the problem of graduate unemployment irrespective of the fact that there are over two hundred (200) Universities in Nigeria ranging from Federal to private universities as well as polytechnics, and colleges of education (Ajaegbu, 2012). This assertion is premised on the fact that graduate unemployment in Nigeria has affected youths from a broad spectrum of socioeconomic groups, both the well and less well educated. As a result, it has particularly stricken a substantial fraction of youths from low income backgrounds and limited education. It is disturbing to note that Nigeria’s graduates have limited chances of becoming gainfully employed. It is even more disheartening that the country’s economic condition is such that, it is hardly able to absorb an optimal proportion of the production of its own educational system. Gone were the days when employers go about looking for employees.
The menace of unemployment has increasingly been recognized as one of the socio-economic problems currently facing many developing countries likeNigeria and Africa as a whole. Graduate Unemployment in Nigeria is indeed a pathetic situation that calls for urgent attention, to address these socio-economic effects accompanied by it. It is against this background that this study set out to examine the effects of graduate unemployment on Nigeria’s economic development from 1999-2014.
Therefore, in Nigeria where the research was carried out, the activities that was conducted is to know the Impact and Economic Effect of Unemployment among Graduate.
1.3 Statement of Problems
Investigation revealed that unemployment in Nigeria, especially graduate unemployment has been blamed on so many factors such as erratic power supply, corruption, and other factors. For instance, erratic and inadequate power supply has been the major reason cited by many of the multinationals such as Michelin, Dunlop plc, Volkswagen Plc, PZ, Unilever that are closed their operations in Nigeria which further worsened the level of unemployment. For instance, the exit of Michelin from Nigeria costs the economy 1,300 direct jobs (Oke 2011).
The consequences of graduate unemployment in Nigeria are very severe and threatening to the citizenry and the economy as a whole. Graduate unemployment episode has continued to pose so many challenges to youths who are the future leaders thereby affecting the stability and survival of the Nigerian nation. Graduate Unemployment has contributes to crime and violence in Nigeria. With growing level of graduate unemployment, the divide between the rich and the poor grows, resulting in social tensions which could affect the entire fabric of a community, state and the entire country. For instance, the Niger Delta restiveness and the current Boko Haram insurgence have been blamed on youth unemployment.
Also, it has led to drugs abuse by youths. Due to frustration as a result of not gainfully employed, most people turn to drugs. 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.
1.4 Aim and Objectives of Study
The aim of the study is to examine the Impact and Economic Effect of Unemployment among Graduate in Nigeria. In achieving this aim, the following specific objectives were laid out as follows:
- To examine the strategies employed by the government in combating the problems of unemployment among graduates;
- To interrogate the relationship between graduate unemployment and Nigeria’s economic development;
- To evaluate that causes of graduate unemployment in Nigeria; and
- To suggest ways through which graduate unemployment can be reduced if not eradicated totally in Nigeria.
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- What is the relationship between graduate unemployment and Nigeria’s economic development?
- What are the ways through which graduate unemployment can be reduced if not eradicated totally in Nigeria?
- Are there causes of graduate unemployment in Nigeria?
- What are the strategies employed by the government in combating the problems of unemployment among graduates?
1.6 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
Hypothesis One
- H0: There is no significant strategy employed by the government in combating the problems of unemployment among graduates.
- H1: There is a significant strategy employed by the government in combating the problems of unemployment among graduates.
Hypothesis Two
- H0: There is no relationship between graduate unemployment and Nigeria’s economic development.
- H1: There is a relationship between graduate unemployment and Nigeria’s economic development.
Hypothesis Three
- H0: There is no relationship between corruption and graduate unemployment in Nigeria.
- H1: There is a relationship between corruption and graduate unemployment in Nigeria.
Hypothesis Four
- H0: There is no relationship between erratic power supply and graduate unemployment in Nigeria.
- H1: There is a relationship between erratic power supply and graduate unemployment in Nigeria.
1.7 Significance of Study
There are too many benefits that will be accruable from this study when completed.
Firstly, it will provide an in-depth understanding on the causes of unemployment in Nigeria as well as its consequences on the youths. This will go a long way in ensuring that efforts will be made by both government and private organizations to work against any policy that will lead to unemployment.
Above all, the study will add more too existing body of knowledge and serve as a reference point for further research in the field of Economics, Political Science, Development Studies, Sociology, etc.
1.8 Scope of Study
The scope of the research is focused on the Impact of Unemployment among Graduate in Nigeria and Its Economic Effect. The quality of this research tends to be limited by so many factors such as, the inability of respondents to open up and respond objectively to the research questions, as well as time and financial constraints.
In order to ensure that these factors do not affect the quality of this research, a structure questionnaire containing open ended question will be designed to guide respondents in their response. Also, finance will be source to meet with the financial obligations of the study.
1.9 Limitations of the Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Financial Constraint: Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
- Lack of Initial Cooperation from Respondents: A particular limitation of this work came as a result of the respondent refusal to offer their cooperation at the initial time they were contacted. This contributed in making the success of this research study difficult.
1.10 Operational Definition of Terms
Economic Development:
This refers to social and technological progress not merely an increase in production but the way and manner goods and services are produced and which consequently leads to increase or improvement in the standard of living of a nation or society in question.
Graduates:
This refers to people who have university degrees or its equivalent to be employed in an organization.
Unemployment:
A situation in which there is number of the economically active population who are without work but available for and seeking work, including people who have lost their jobs and those who have voluntarily left work
Sustainable Development:
This is described as that development that meets the needs and aspirations of the present generations without compromising the ability to meet the need of future generation.
1.11 Outline of Chapters
This study is designed to span over five chapters.
- Chapter one is the introduction which will comprise background to the study, statement of the problem, aim and objective of the study, research questions, research hypothesis, significance of the study, scope and delimitations of the study, etc.
- Chapter two is the literature review and theoretical framework.
- Chapter three deals with the effects of unemployment on Nigeria’s economic development.
- Chapter four is data analysis and presentation.
- Chapter five is the summary recommendations and conclusion.
