EFFECT OF EMPLOYMENT GENERATION IN NIGERIAN ECONOMIC GROWTH AND DEVELOPMENT (A CASE STUDY OF LAGOS STATE)
Abstract
This study aimed at Effect of employment generation in Nigerian economic growth and development (a case study of Lagos state). The study sampled one hundred and twenty respondents with two research hypotheses. Questionnaire was used to obtain necessary information and chi-square was used to analysis the data obtained. The null hypothesis were all accepted. The finding concludes that unemployment will results in setback for the nation economy if urgent steps are not taken by the government. And also measure should be put in place to address the manance of unemployment in our society such as creating jobs for the graduates and alternate means to revamp agriculture and small scale industries. Government must empower the national directorate of employment.
TABLE OF CONTENT
Title Page i
Certification ii
Dedication iii
Acknowledgment vi
Abstract vi
Table of content vii
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study 1
1.2 Statement of the Problem 6
1.3 Research questions 8
1.4 Objective of the study 9
1.5 Significance of the Study 10
1.6 Research Hypotheses 10
1.7 Scope and Limitation of the Study 11
1.8 Definition of Terms 12
CHAPTER TWO: LITERATURE REVIEW
2.0 Introduction 14
2.1 Unemployment and Economic Growth
and Development 26
2.2 Theoretical Framework: 28
2.2.1 Classical Theory of Unemployment 28
2.2.2 Keynesian Theory of Unemployment 30
2.2.3 Efficiency Wage Theory 32
2.3 Empirical Literature 35
CHAPTER THREE
3.0 Research Method 43
3.1 Research Design 43
3.2 Population and Sample 43
3.3 Instrumentation 44
3.4 Administration of Instrument 44
3.5 Validity and Reliability 45
3.6 Method of Data Analysis 45
CHAPTER FOUR: PRESENTATION OF DATA ANALYSIS
4.0 Introduction 47
4.1 Research Hypothesis One 47
4.2 Research Unemployment 49
4.3 Discussion of Findings 51
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
- Summary 57
- Conclusions 58
- Recommendations 59
References 61
Questionnaire 65
CHAPTER ONE
INTRODUCTION
- Background of the Study
Unemployment is generally seen as a macro-economic problem as well as socio-economic problem. Unemployment arises as a result of insufficient and non-availability of jobs to correspond with the growing population, even those who are employed sometimes lives with the fear of being unemployed due to job insecurity and retrenchment of workers. There is employment of factors of production if they are engaged in production wikipedia (2014). The term unemployment could be used in relation to any of the factors of production which is idle and not being utilized properly for production. However, with reference to labour, there is unemployment if it is not possible to find jobs for all those who are eligible and able to work. Labour is said to be underemployed if it is working below capacity or not fully utilized in production. According to Anyawuocha (1993)1 , unemployment can either be voluntary or involuntary. Voluntary in the sense that one chooses not to work because he or she has means of support other than employment. Example is an idle rich man.
On the other hand, He further assert that involuntary unemployment exist when persons who are eligible and willing to work at the prevailing rate of pay are unable to find work. According to the central bank of Nigeria (2004), unemployment rose to 30% during 2004 statistics on unemployment rate. Unemployment has been seen as a world-wide economic problem and has been categorized as one of the serious impediments of social progress. Apart from representing a huge waste of manpower resources, it generates welfare loss in terms of lower output thereby leading to lower income and wellbeing of the people. Unemployment is a very serious issue in Africa and particularly in Nigeria.
The need to avert the negative effect of unemployment has made the tackling of unemployment problems to features very prominently in the development objectives of many developing countries.
In the study of unemployment in Africa Anyawocha (1993) identified three (3) causes of unemployment, which are: the educational system, the choice of technology which can either be labour intensive or capital intensive and inadequate attention to agriculture. The use of machines to replace work done by labour and computerization has contributed to these social problems in the sense that what for example forty (40) men can do manually a machine will only need like five (5) men. Therefore, the remaining thirty-five (35) are unemployed. More so, lack of enough education and skill to have access to credit and capital. One particular feature of unemployment in Nigeria is that it was more endemic in the early 1980s than any other period. According to Udabah (1999), the major factor contributing to low standard of living in underdeveloped countries in their relative inadequate or insufficient utilization of labour in comparison with advanced nations.
Unemployment rate is measured by the proportion of the labour force that is unemployed divided by the total number of the labour force. The total labour force was projected at 61, 249, 485 in 2007 indicating an increase of 3.9%. Total employment in 2007 stood at 52, 326, 923 compared with 50,886,836 in 2006. This represent an employed (that is, those who currently have jobs) and unemployed (those who do not have jobs but who are actively looking for work). Individuals who do not fall into either of these group such as retired people and discouraged workers are not included in the calculation of the labour force. The international labour force organization (ILO) defines unemployment as the proportion of the labour which was available for work but did not work for at least thirty nine (39) hours in the week preceding survey period. Unemployment brings about economic waste and cause human suffering.
According to Uzochukwu (2013), unemployment is as a result of the inability to develop and utilize the nation’s manpower resources effectively, especially in the rural sector. The social economic effects of unemployment includes fall in national output, increase in rural-urban migration, waste to human resources, high rate of dependency ratio, poverty, depression, frustration, all sorts of immoral acts and criminal behaviour e.g prostitution, armed robbery, etc. The social effect of unemployment brings to light to proffer possible solution to savage our nation.
1.2 Statement of the Problem
In Nigeria, a number of states including Lagos state experience a rise in unemployment among youth, unemployment situation in Lagos is inherent in the capitalist system of Nigeria economy. As policy makers are not committed to evolve pragmatic measures capable of reducing unemployment to the barest minimum, we find out that the unemployed are alienated because such policies as poverty alleviation programme, National Directorate for Employment (NDE) not in any way reduced the problem of unemployment, but has been hijacked by some selfish and greedy Nigerians. Working with the data from the national bureau of statistics (2008), it indicates that the national unemployment rate in the first quarter of 2007 was 14.6%, compared with 13.7% in 2006. The urban and rural rates were 14.4% and 15.0% respectively compared with 10.2% and 14.8% in 2006. Further analysis showed that the distribution of unemployment ranged from 14.1% for the age group of 25.44 to 23.5% for the age group of 65.70. Desegregation according to geopolitical zones showed a very uneven distribution with the south-south zone having the highest unemployment rate of 29.5% and south-west at the near with 8.5%. Between these extremes were the north-east with 18.5%, south-east 18.1%, north-central 15.8% and north-west 14.2%. It is based on the increasing problem posed by unemployment on individuals and the nation at large that government has been embarking on various policies to control and reduce unemployment but yet has not yielded any positive result; rather it seems to be escalating. Drastic measures must be taken by government to curtail this problem of unemployment. The statement of problem is based on the economic, social and political effects of unemployment.
1.3 Research questions
- Is there any relationship between unemployment and economic growth in Nigeria?
- Does unemployment have any significant effect on national development?
1.4 Objective of the study
- To determine the relationship between unemployment and economic growth in Nigeria
- To examine the major factor that causes unemployment in the society
- To assess the consequences of unemployment on the society
- To examine efforts the government at state and federal level and individual organizations has put in place in employment generation.
1.5 Significance of the Study
The significance of this study is to make research on the effect of unemployment for most qualified graduates of various institutions of learning and also qualified skilled labours. The result of this study will provide useful information needed by government to fight unemployment and help create employment opportunities in Nigeria.
1.6 Research Hypotheses
The null research hypotheses for this work are:
- Unemployment will not significantly affect economic growth in Nigeria.
- There is no relationship between unemployment and national development.
1.7 Scope and Limitation of the Study
The scope of this study is centered on the effect of unemployment on the Nigeria economy. It is worthy to note that every research work posses a lot of problems and limitations. However, the difficulties encountered includes; inadequate and non-availability of relevant data owing to the fact that unemployment in most under-developed countries e.g Nigeria is not evenly distributed and thus varies from one place to another, financial constraint, high cost of searching the internet, high cost of transportation and the difficulty in locating the various research centres.
1.8 Definition of Terms
Unemployment: Refers to a socio-economic situation in which persons who have no work are able and willing to work and also actively seeking for work but have no work/job to do.
Crime: Refers to any wrong which affects the interest of the society as a whole and for which the offender is liable to punishment.
Poverty: This is the deprivation of the basic necessities of life. A state where individuals lack food, shelter and clothing is termed poverty.
Socio-economic status: This is the position of individual within the society and economic hierarchy.
Society: A society is a group of people who live in a particular geographical location and its people are subject to a common system of political authority and are aware of having a distinct identity from other group around them.
Social problem: These are the objective conditions that affect majority of persons in the society e.g unemployment.
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