Cause And Effect Of Youth Unemployment In Nigeria

Project and Seminar Material for Sociology

Cause And Effect Of Youth Unemployment In Nigeria


The rate of unemployment has risen in the last decade in most of the sub-Saharan African countries. The situation in Nigeria is rapid population growth with low level of employment rate. This study intends to investigate the relationship between unemployment and economic growth in Nigeria. In order to examine the relationship between unemployment rate and economic growth, a simple percentage model will be used to analyzed he data. Empirical findings show that there is both the short and the long run relationship between unemployment rate and output growth in Nigeria. Hence, there is need to incorporate fiscal measures and increase the attraction of foreign direct investment (FDI) to reduce the high rate of unemployment in the country

Chapter One


1.1 Background of the Study

One of the best difficulties of the Sub – Saharan African economies today is the high rate of unemployment that has been on the expansion throughout the years. The issue of youth unemployment has been of incredible worry to the business analysts, economist and policy makers in Nigeria since mid 1980s. The impact of money related emergency on public and private sectors has prompted to reestablish consideration on the wonder. It is a broadly acknowledged view in financial aspects that the development rate of the Gross Domestic Product (GDP) of an economy builds business and diminishes unemployment. three most noteworthy components for the economy general are efficiency, wage conveyance and unemployment. This hypothetical suggestion relating yield and unemployment has been proposed by Okun (1962). This relationship is among the most celebrated in macroeconomics hypothesis and has been found to hold for a few nations and locales principally, in created nations (Christopoulos, 2004; Daniels and Ejara, 2009).

Okun’s (1962) proposes a negative relationship between developments of the unemployment rate and the genuine total national output (GDP) by concentrating on the observational relationship amongst unemployment and GDP varieties. He underscored that subsequently of changes in total request, industry changes their creation design which prompts to changes sought after for work which adjust the unemployment rates.

Unemployment and neediness are both intelligent and precipitants of plenty of contemporary societal difficulties, for example, authority, security, administration, and so on that are unfriendly to human social-presence (for causing sufficient human limit building and material use) all around. In this manner, an awesome vision of Nigerian government is commenced on getting to be distinctly one of the 20 most industrialized economies in the world by the year 2020. Attainment of this aspiration hinges on the extent to which the country is able to create and nurture, a competitive and adaptive human resource base, responsive to the rapidly industrializing and globalizing economy.

The paper is mindful of the fact that vision 20:2020 designed by the Nigerian government is five years away. Equally and poignantly is to remind ourselves that the Millennium Development Goals (MDGs), (we are already in its target: year 2015).Hence its assessment. In spite of all lofty ideas inherent in these programs, what is crystal clear is that poverty is still enormously ravaging the land. What becomes more worrisome is considering the teaming population of unemployed graduate youths in the country. Unemployment or joblessness as defined by the International Labor Organization (1982) occurs when people are without jobs and they have sought work within the past five weeks. The unemployment rate is a measure of the prevalence of unemployment and it is calculated as a percentage by dividing the number of unemployed individuals by all individuals currently in the labor force. Unemployment in Nigeria is defined as the proportion of labor force that was available for work but did not work in the week preceding the survey period for at least 39 hours. Official figures from Bureau of Statistics puts the figure of unemployed at 19.70 percent, about 30 million, but this figure still did not include about 40 million other Nigerian youths captured in World Bank Statistics in 2010. By implication, it means that if Nigeria’s population is 160 million plus, then 50 percent or more of Nigerians are unemployed, Njoku and Okezie (2011) asserted.

1.2 Statement of the Problem

Unemployment is a virus that can contaminate or corrupt any economy no matter how viable it is. This is because labor is one of the major factors of production, this factor of production no matter how viable it is, it has a period of productivity. When the youth are unemployed it tend to lead them to social vices and crimes, some of this activity as a result of idleness may lead to the destruction of lives and property. It is on this backdrop that the researcher intend to investigate the impact of youth unemployment and economic growth.

1.3 Objective of the Study

The main objective of this study is to ascertain the effect of youth unemployment on economic growth. However, for the successful completion of the study, the researcher intend to achieved the following sub-objectives:

  1. To ascertain the impact of unemployment on economic growth
  2. To ascertain the relationship between youth unemployment and economic growth
  3. To ascertain ways of eradicating youth unemployment in our society
  4. To analyze the effect of unemployment on the productivity of the economy.

1.4 Research Hypotheses

For the successful completion of the study, the following research hypotheses are formulated

  1. H0: unemployment does not have any significant impact on the economic growth
    H1: unemployment has a significant impact on the economic growth of the economy.
  2. H0: there is no significant relationship between youth unemployment and economic growth
    H2: there is a significant relationship between youth unemployment and economic growth.

1.5 Significance of the Study

It is perceived that at the completion of the study, the findings will be of great benefit to ministry of labor and productivity in their quest to combat unemployment in the country.

The findings will also be of great importance to the Nigeria labor congress in their quest to protect the interest of its members, the study will also be of great importance to the employers of labor in their choice of employment which will aid them in obtaining the best from their employee.

Finally the study will be of great importance to researchers as it will serve as a source of information to any one that want to embark on research on similar topic

1.6 Scope and Limitation of the Study

The scope of the study covers youth unemployment and economic growth, however there are some limitations o he scope of the study. Below are some of the constrains:


Is a major limitation to the scope of the study, as available resources does not allow for a wider scope


The time allocated to the research work is limited because of other academic works

Availability of Research Materials:

Material for this work is not readily available as the researcher has to go to the field and source for materials.

1.7 Definition of Terms


Unemployment is a phenomenon that occurs when a person who is actively searching for employment is unable to find work. Unemployment is often used as a measure of the health of the economy. The most frequently measure of unemployment is the unemployment rate, which is the number of unemployed people divided by the number of people in the labor force.

Economic Growth

Economic growth is the increase in the inflation-adjusted market value of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP, usually in per capita terms.

Growth is usually calculated in real terms i.e., inflation adjusted terms to eliminate the distorting effect of inflation on the price of goods produced.

Gross Domestic Product (GDP)

Gross domestic product (GDP) is a monetary measure of the market value of all final goods and services produced in a period (quarterly or yearly). Nominal GDP estimates are commonly used to determine the economic performance of a whole country or region, and to make international comparisons.

1.8 Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows

  • Chapter one is concern with the introduction, which consist of the (overview, of the study), statement of problem, objectives of the study, research question, significance or the study, research methodology, definition of terms and historical background of the study.
  • Chapter two highlight the theoretical framework on which the study its based, thus the review of related literature.
  • Chapter three deals on the research design and methodology adopted in the study.
  • Chapter four concentrate on the data collection and analysis and presentation of finding.
  • Chapter five gives summary, conclusion, and recommendations made of the study.

Chapter Five

Summary, Conclusion and Recommendation

5.1 Introduction

It is important to ascertain that the objective of this study to ascertain the causes and effect youth unemployment in Nigeria.

In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing challenges of youth unemployment in Nigeria.

5.2 Summary

Unemployment is a serious problem in Nigeria and it is unfortunate that the country is being threatened by unemployment whose impact on Nigeria’s sustainable development cannot be overemphasized. The social vices that have characterized the nation such as armed robbery, trafficking, kidnapping, terrorism, prostitution among others cannot be unconnected with unemployment crisis, the rate at which is alarming today. Until adequate measures are taking, the future of Nigeria’s development will be a mirage.

5.3 Conclusion

The findings revealed that unemployment in Nigeria increased from 21.1% in 2010 to 23.9% in 2011 with youth unemployment at over 50%. From 2011 to 2013 there is an increase of 16% unemployment growth rate in Nigeria. From all indications, youth unemployment is a menace in Nigeria and constitutes a real danger and a threat to Nigeria’s democracy. This is because these youths could be manipulated to undermine the stability of Nigeria’s democracy at any point in time. Against this background, there is the need by government at all levels, international community and other stakeholders to embark on massive job creation to take these youths off the streets. Granted, there may not be a quick fix to this problem, but all the stakeholders must as a matter of fact do something urgently.

Finally, democracy is a journey not a destination. For Nigeria, it is a learning process. As a matter of fact it may not be a perfect system of government, but it has several advantages over other systems. People including the Nigerian youths must feel the positive impact of democracy in their lives. The situation whereby only a few privileged persons in positions of authority benefit from this system of government at the expense of the impoverished masses portends a great and real danger that may incur the wrath of the unemployed youths in Nigeria if not addressed urgently. Nigerian leaders should strive to promote good governance in other to engender youth empowerment, employment and socio-economic development.

5.4 Recommendations

Anti corruption crusade should attacked the root of corruption: Both the EFCC and Anti corruption commission should look deeply into the root causes of corruption and address it from the beginning which will help greatly in minimizing corruption.

Strengthen of existing institutions by appointing decent people to head them, respect their tenure and appoint successors rather than political appointee.

Investment in education: government should invest heavily on education, education that will enable the youth to become self reliance instead of job seekers through skills development and training.

Infrastructural building that will provide employment to thousand people such as good roads, electricity, provision of portable drinking water etc should be embarked upon by the government of the day.

  • Create labour market that work better for the youth
  • Promotion of conducive atmosphere for investment.

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