UNEMPLOYMENT AND ECONOMIC DEVELOPMENT IN NIGERIA A CASE STUDY OF NWANGELE LOCAL GOVERNMENT AREA IN IMO STATE
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UNEMPLOYMENT
AND ECONOMIC DEVELOPMENT IN NIGERIA
A CASE STUDY
OF NWANGELE LOCAL GOVERNMENT AREA IN IMO STATE
ABSTRACT
The study was
designed to discuss unemployment and economic development in Nigeria with
particular reference to Nwangele local government area. In carrying out the
study, questionnaires were used as the instrument to gather information, and
were administered on one hundred and twenty (120) respondents. Using a detailed
descriptive analytical method, the study found out that majority of
unemployment people in our society do not have technical skills required in
making themselves reliant. Government should provide infrastructural facilities
to accelerate industrialization in rural areas thereby reducing rural-urban
migration. The private sector and Non-government organization (NGO) were called
upon to join government to find lasting solution to Nigeria mass unemployment
problem through job creation. The unemployed person should be resourceful,
innovative and adaptive to their environment. they should seek to be
self-reliant.
TABLE OF CONTENTS
Title Page i
Certification ii
Dedication iii
Acknowledgement iv
Abstract v
Table of Contents vi
CHAPTER
ONE
1.0 General
introduction 1
1.1 Statement
of problem 5
1.2 Statement
of objective 6
1.3 Research
question 6
1.4 Statement
of hypothesis 7
1.5 Method
of study 8
1.6 Scope
of study 9
1.7 Significance
of the study 10
Abbreviations 11
References 12
CHAPTER
TWO
2.0 Literature
Review 13
2.1 Concept
of Underemployment 18
2.2 Theories
of Unemployment 20
2.3 Types
of Unemployment 23
CHAPTER ONE
INTRODUCTION
GENERAL
INTRODUCTION
Unemployment
in Nigeria is one of the most critical problems the country is facing. Youth
restiveness and kidnaping in Nigeria in recent times have generated so much
issues that many believe that unemployment is the major cause of this enemy of
society. The years of corruption, civil war, military rule and mismanagement
have hindered economic growth of the country. Nigeria is endowed with diverse
and infinite resources, both human and material.
However,
years of negligence and adverse policies have led to the under-utilization of
these resources. These resources have not been effectively utilized in order to
yield maximum economic benefits. This is one of the primary causes of
unemployment in Nigeria.
Unemployment
in Nigeria has resulted in more and more people in Nwangele local government
area who do not have purchasing power. Less consumption has led to lower
production and economic growth has been hampered. Unemployment also has social
consequences as it increase the rate of crime.
The
first national development plan charted Nigerians transition from an
essentially agricultural economy to a mixed economy based on agricultural
expansion and limited industrial growth. Government was heavily involved in the
economy, because locally generated private investment was unable to generate
sufficient capital development. New development plans were instituted in 1970
and 1975, but the goals set in all three plans proved unrealistic.
By
the late 1960s, oil has replaced cocoa, peanuts, and palm products as the
country’s biggest foreign exchange earner. In 1971, Nigeria by then the world’s
seventh-largest petroleum producer became a member of the organization of
petroleum exporting countries (OPEC). The dramatic rise in world oil prices in
1974 caused in Sudan flood of wealth that can be described as “much of the
revenue was intended for investment to diversify the economy, but it also
spurred inflation and coming in the midst of widespread unemployment
underscored inequalities in distribution. In 1975, production fell sharply as a
result of the sudden decrease in world demand, and prices moved downward until
late that year when OPEC intervened to raise price. Nigeria fully supported
OPEC policies.
In
1972, the government issued an indigenization decree, the first of a number of
Nigeria enterprises promotion decrees that barred aliens from investing in
specified enterprises and reserved participation in certain trades to
Nigerians. At the time, about 70% of commercial firms operating in Nigeria were
foreign owned. In 1975, the federal government bought 60% of the equity in the
marketing operations of the major oil companies in Nigeria, but full
nationalization was rejected as a means of furthering its programme of
indigenization.
The
issue of persistent unemployment and utilization poses a great challenge to
policy planners, human resources experts and persons dealing with employment
programme, planning and implementation. The late president of the united states
of American John F. Kennedy in the first manpower reports in the U.S observed
“manpower is the basic resource”. It is the indispensable means of converting
other resources to mankind use and benefits. How well we develop and use human
skills is fundamentals in deciding how much we will accomplish as a nation”. If
the assertion is accepted, it puts in to sharp perspective the challenge of
manpower development and utilization in Nigeria, which has been characterized
by high rate of unemployment in the 1980s, and its persistence into 2000s.
Thus,
the Nigeria population has a major implication for the nation. The demand for
education is a case in point, in which we have many people who enroll in our
primary, secondary and tertiary institutions. At the end of each academic year,
these educational institutions turn out more graduates who eventually become
potential job seekers in the Nigerian laobur market. As a result of the new
dimension of unemployment, the federal government had in the past, established
institutions and programme that will help reduce the problem development.
Between 1971 and 1986, a number of key manpower development institutions were
established. In 1986, the federal government established the national
directorate of employment which aim was also established to enhance on the job
trainings. The center for management development (CMD) which offers managerial
training to the private sector was also established to reduce the level of
unemployment in Nigeria. Other institutions like the national open
apprenticeship scheme (NOAS) and graduate self-employment index (GSEI) were also
established.
Although
various governments have made serious efforts to curb the problem of
unemployment, this enemy of our society continues to increase the hardship of
Nigeria citizens.
1.1 STATEMENT OF PROBLEM
Our
economy has suffered great problems arising from unemployment, since 1960 when
Nigeria got her independence from the British.
The
problem of unemployment in Nigeria has been a long and lingering one with so
many deleterious effects on the economy, society and people themselves.
Various
governments have made several efforts through various programmes and policies
to tackle this problem of unemployment.
However,
in spite of all these efforts, it is still noticeable that this problem is
still very much around in the economy and the effects seem to become more
pronounced and far-reaching in terms of its negative effects on Nigeria’s
economic development.
Therefore,
there is a need to do a study to find out why these policies and programmes
meant to tackle unemployment have not been effective.
1.2 STATEMENT OF OBJECTIVE
Ø To
critically examine nature and the causes of unemployment in Imo State.
Ø To
identify some of the government programmes of employment with a view to
ascertaining their efficiency.
Ø To
determine socio-economic impact of unemployment in Nwangele local government
area.
1.3 RESEARCH QUESTION
The
instruments used in choosing our respondents were through distribution of
questionnaire and interviews. We used the same types of questionnaires for all
levels of respondents. The questionnaire consists of twenty questions and one
hundred and twenty (120) copies of used to get responses from respondents.
There are:
1. Has
Imo State government made efforts to provide jobs in recent times?
2. Do you
think that youth restiveness is as a result of widespread unemployment?
3. In
your opinion, does the high rate of unemployment today affect economic
development?
4. What
are the major causes of unemployment in Nwangele
5. Considering
difficulties people face today in obtaining job, what job areas has many find
jobs easily.
6. Can
age prevent someone from getting a job in a certain establishment?
1.4 STATEMENT OF HYPOTHESIS
This
study has two hypotheses
H01:
There is no significant relationship between unemployment and economic
development.
H02:
There is a significant relationship between unemployment and economic
development.
Hypothesis 2
H01:
Imo State government has not made efforts to provide jobs in recent times.
H0:
Imo State government has made efforts to provide jobs in recent times.
1.5 METHOD OF STUDY
The
data for this work is based on both primary and secondary sources. The primary
data will be sourced using questionnaire and interviews. The secondary source
is through existing information is that is related to this study. The sources
include: published works of national planning commission on national economic
empowerment and development strategy (NEEDS); information gotten from textbooks
and articles published on unemployment available on the internet.
1.6 SCOPE OF THE STUDY
This
research work is confined to unemployment and economic development in Wwangele
local government, Imo State. Specific effort is made to relate how this problem
affects the people of Nwangele local government area (L.G.A), Imo State.
The
study also covers the consequences of unemployment in Nigeria. It highlights
behaviour pattern of people showing that all hands must be on deck in
harnessing effective measures to ameliorate the rate of unemployment in Nigeria
in order to encourage rapid development to all sectors of the economy.
1.7 SIGNIFICANCE OF THE STUDY
The
rate of urbanization in Nigeria (about 5.3% a year) is one of the fastest in
the world. Urban unemployment is estimated at about 10.8% if manufacturing and
services sector do not grow sufficiently to absorb the surge of labour to buran
areas and if rural areas are not transformed to stem the growth in migration to
urban areas, the rare of urban unemployment could become unmanageable. The
implication for poverty and crime, conflict and the maintenance of democracy
are grave.
Since
majority of unemployed people in Nigeria are graduates who can direct their
education to crime if they are not gainfully employed, this research work is
thus an invaluable tool in advising the government and concerned Nigerians on
effective measures to reduce the suffering of our people.
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