1.0 Introduction
1.1 Background of Study
The issue of unemployment, particularly youth unemployment, has been a persistent concern globally, with its roots tracing back to the early industrial revolutions. In many developing countries, including Nigeria, the rapid growth of the youth population has compounded the unemployment problem, especially as the economy struggles to create enough job opportunities to absorb the increasing workforce (Okun, 2017). Unemployment among youth is not a recent phenomenon but has evolved over time with changing economic, social, and political contexts.
Historically, youth unemployment in the global South can be traced to the post-colonial era when many newly independent nations faced challenges related to economic instability, lack of infrastructure, and an over-reliance on primary industries. In Nigeria, the 1980s and 1990s marked a significant rise in youth unemployment, particularly during periods of economic recession. The structural adjustment programs (SAP) implemented during these periods were intended to stabilize the economy but led to a reduction in public sector jobs, which had previously absorbed a large portion of the educated youth population (Adebayo, 2018).
In the 21st century, the situation has not improved significantly, despite efforts to address youth unemployment. The growth of the global youth population, technological advances that render certain job types obsolete, and the continued challenges in education and vocational training have all contributed to the persistent problem (World Bank, 2020). In many African countries, including Nigeria, there has been a rapid increase in youth migration to urban areas, with hopes of finding better employment opportunities. However, urbanization has often outpaced job creation, leading to high unemployment rates in cities, especially among those with little formal work experience (Adelekan, 2019). Unemployment among youths is a pressing issue with significant implications for both individuals and society at large. Youth unemployment refers to the percentage of individuals aged 15 to 24 who are actively seeking employment but are unable to find work (International Labour Organization, 2020).
O'Connor et al. (2018) stated that, the effects of unemployment on youths are both immediate and long-term. On an economic level, unemployment restricts youths from achieving financial independence, forcing them to rely on their families or state support, which can cause additional stress on households already struggling with economic instability. Furthermore, the lack of employment opportunities prevents youths from gaining valuable work experience, making it harder for them to secure jobs in the future (O'Connor et al., 2018).
Socially, unemployment has been linked to higher rates of crime and social unrest, particularly when young people feel disconnected from mainstream society and perceive that they have few opportunities for advancement (Iloh & Nwachukwu, 2021). The psychological effects of unemployment are also significant, with studies indicating that prolonged joblessness can lead to mental health challenges such as depression, anxiety, and low self-esteem among young people (O'Connor et al., 2018).
According to International Labour Organization (2020), unemployment is a critical issue that has widespread consequences for individuals, families, and society at large, particularly for youths. The effects of unemployment on young people are multifaceted, impacting their economic well-being, mental health, and overall development. Youth unemployment refers to the situation where individuals between the ages of 15 and 24 are actively seeking work but are unable to find employment (International Labour Organization, 2020). The phenomenon has become a significant concern globally, especially in developing nations like Nigeria, where the youth population continues to grow rapidly (Ogunyemi & Fola, 2019). For many young people, unemployment represents not only a loss of income but also a loss of opportunities for personal growth, skill development, and social engagement (O'Connor et al., 2018).
The effects of unemployment on youths are particularly severe in economies that lack the infrastructure to provide sufficient employment opportunities, which can lead to feelings of frustration, low self-esteem, and disillusionment. Additionally, prolonged unemployment among young people is linked to increased rates of social unrest, crime, and political instability, making it a critical issue for both policymakers and community leaders (Iloh & Nwachukwu, 2021).
Therefore, in Nigeria where the research was carried out, the activities that was conducted is to know the effects of unemployment on youths.
1.2 Statement of Problems
Investigation revealed that unemployment is often linked to higher rates of mental health problems among young people. The frustration and hopelessness that stem from the inability to secure a job can lead to feelings of depression, anxiety, and, in some cases, even suicidal tendencies. Studies have shown that the prolonged lack of employment opportunities contributes to psychological stress, which severely hampers the well-being and overall development of youths (World Bank, 2020).
Additionally, there is social unrest caused by high youth unemployment rates. When large numbers of young people are excluded from the labor market, they are more likely to engage in criminal activities and social unrest as a means of coping with their marginalization (ILO, 2019).
Furthermore, the long-term effects of unemployment on youths also have implications for national economic growth. With a substantial portion of the young population unable to contribute productively to the economy, countries face challenges in fostering sustainable economic development. The inability to effectively integrate young people into the workforce stifles innovation, reduces productivity, and leads to the loss of human capital (Okun, 2017). It is against the backdrop that this study seeks to address these problems by examining the effects of unemployment on youths, focusing on its psychological, social, and economic impacts, while also exploring potential solutions for reducing youth unemployment in Nigeria.
1.3 Aim and Objectives of Study
The aim of the study is to investigate the effects of unemployment on youths. The objectives of this study are as follows:
- To analyze the economic impact of unemployment on youths, including how it affects their income levels, standard of living, and future economic opportunities.
- To investigate the social consequences of youth unemployment, such as increased crime rates, social unrest, and the exacerbation of inequality.
- To examine the psychological effects of unemployment on youths, particularly in terms of mental health challenges such as stress, anxiety, and depression.
- To explore the relationship between youth unemployment and the level of education or skills training, assessing how this gap influences employability and career prospects.
- To provide policy recommendations that can help reduce youth unemployment and mitigate its negative effects on society and the economy.
1.4 Research Questions
The following research questions are developed based on the stated objectives of the study on the effects of unemployment on youths:
- How does unemployment impact the financial stability and standard of living of youths?
- What are the psychological and social consequences of unemployment on youths, particularly in terms of mental health and social exclusion?
- In what ways does unemployment influence the relationship between education, skill development, and employment opportunities for young people?
- How does unemployment affect the long-term career development and professional growth of youths?
- What strategies and recommendations can be implemented to reduce the unemployment rate among youths and enhance their employment prospects?
1.5 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.
- H0: Unemployment does not have a significant negative impact on the financial stability, psychological well-being, and career development of youths.
- H1: Unemployment has a significant negative impact on the financial stability, psychological well-being, and career development of youths.
1.6 Significance of Study
The outcome of the findings of this research will help policymakers and government officials understand the long-term consequences of youth unemployment and formulate targeted interventions. Additionally, it will serve as a resource for educational institutions and non-governmental organizations to design programs aimed at improving youth employability and career readiness.
The research findings will also aid researchers in further exploring the intersection of unemployment, education, and youth development.
Furthermore, the study will help bridge the gap between academic research and practical solutions to address youth unemployment.
1.7 Scope of the Study
The scope of this study will focus on the effects of unemployment on youths in Lagos State, Nigeria. The research will specifically target young people aged 18-35, examining how unemployment affects their socio-economic well-being, mental health, and future career prospects. The study will analyze data collected from various sectors, including government organizations, private businesses, educational institutions, and youth organizations within the state.
1.8 Limitations of the Study
The limitations of this study were primarily related to time and resource constraints.
- Due to the limited timeframe, it was not possible to cover all regions of Nigeria, and the study was restricted to Lagos State.
- Frequent power failures and internet connectivity issues hindered the efficient collection and processing of data, making the research process more challenging.
- The study was also affected by the lack of cooperation from certain organizations and individuals who were unwilling to share information, resulting in limited responses to surveys and interviews.
- Additionally, there was a challenge in obtaining accurate and up-to-date data on unemployment rates and the socio-economic impacts on youths, as some records were outdated or inaccessible.
- Lastly, financial constraints limited the ability to conduct a larger-scale study, restricting the sample size and the scope of the research.
1.9 Definition of Terms
Unemployment: Unemployment refers to the state of being without a job while actively seeking work. It is a critical economic indicator, often associated with negative social and psychological consequences, particularly for youth (International Labour Organization, 2020). For young people, it is a period of economic inactivity, often accompanied by financial instability, reduced opportunities for personal growth, and feelings of exclusion from society.
Youth: Youth refers to individuals who are in the transition phase between childhood and adulthood, typically defined as ages 15 to 24, though definitions may vary across different contexts (United Nations, 2019). Youth is a critical developmental stage that encompasses educational, social, and emotional changes, making unemployment particularly damaging during this period.
Economic Effects: Economic effects refer to the consequences that unemployment has on both individuals and the broader economy. These can include reduced income, lower levels of consumption, and higher dependence on social welfare programs (OECD, 2020). For youths, economic effects often manifest in challenges in achieving financial independence, difficulty in accessing education and skills development, and limited career advancement opportunities.
Psychological Effects: The psychological effects of unemployment can be profound, leading to stress, anxiety, depression, and a decline in overall mental well-being. For young people, unemployment can hinder the development of self-confidence, self-worth, and long-term career aspirations (Friedman, 2018).
Social Exclusion: Social exclusion refers to the process through which individuals are marginalized or excluded from participation in societal activities, often due to economic factors like unemployment. For young people, unemployment increases the risk of social isolation, strained relationships, and reduced community involvement (Silver, 2020).
Youth Unemployment Rate: The youth unemployment rate is a measure of the percentage of the labor force aged 15-24 who are unemployed and seeking employment. It is a key indicator used to assess the health of a country's labor market and the opportunities available to young people (World Bank, 2021).
Skills Mismatch: A skills mismatch occurs when the skills that young individuals acquire through education or training do not align with the demands of the labor market. This can be a major contributor to youth unemployment, as a lack of relevant skills can prevent young people from securing jobs (ILO, 2019).
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