Impact Of Unemployment Among Graduate In Nigeria And Its Economic Effect

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Impact Of Unemployment Among Graduate In Nigeria And Its Economic Effect


Unemployment has been a challenge to many economies especially to those in the developing world. The main purpose of the study was to examine the effect of unemployment among the graduate in AMAC LGA in FCT. Both quantitative and qualitative approaches were employed. The quantitative data on the graduate were collected from 300 respondents in 10 communities while qualitative data on the graduate were also collected through focus group discussions in the same communities. Descriptive statistics and thematic analysis were respectively chosen to analyse the quantitative and qualitative data collected from the field. Among other things, the study indicated rural-urban migration as a major cause of graduate unemployment in AMAC. Suggestion was therefore made to the Government to create jobs in the rural communities of Nigeria.

Chapter One


1.1 Background to the Study

Current World Population include an estimated 1.2 billion young people between the ages of 15 and 24 years, which is about 24.7% of the world’s working age population. Worldwide graduate unemployment is high, almost three times higher than the adult unemployment rate. With the economic downturn, the worldwide graduate unemployment is expected to reach 25% in 2012 (International Labour Organisation, 2008).

In certain parts of the world, especially Sub-Saharan, African, graduate unemployment rates can be as high as 60%. More than one third of the young people in the world are unemployed, have completely given up looking for a job or are working but still living below the $2 a day poverty line (International Labour Organisation), or have migrated. Young job seekers face increasing difficulties finding work in the current economic scenario and these have resulted in several social phenomena in the society.

Nigeria is the most populous country in Africa and the eighth most populous country in the world with a population of 154, 729,000 citizens. Our nominal GDP is $207.166 billion and we have a nominal per capita income of $140,011. Nigeria also has the second largest economy in Africa, if I may ask, is this country not blessed? Yet, it is still plagued by graduate unemployment which had been one of our major problems in recent years. Both government and the private sector had discussed this issue at forums and conferences but have not found a solution to it. Its continued existence has been linked to lack of power supply and financial empowerment for graduates.

Graduate unemployment in Nigeria is mostly referred to as graduate unemployment and this means that only the skilled graduates are seen as unemployed while the unskilled graduates are not given any consideration. However, graduates are not a homogenous group and their employment prospects differ according to numerous factors ranging from region to gender to schooling. These phenomena have pushed the Nigerian yoiuths to a stage of anomie and they have adopted dysfunctional methods, such as: armed robbery, prostitution, terrorism, kidnapping, thuggery, militancy, internet scam, fraudulent acts, and so on, in order to cope with the increasing trend of economy meltdown in the country.

This research will x-ray how the impact of unemployment in Nigeria has severely affected graduates, using a case study of AMAC Local Government Area of FCT. The study will examine the rural and urban population of people living in the area responses to unemployment predicaments and their differential variables.

1.2 Statement of the Problem

AMAC Local Government is an area with an increasing population of 137,100 thousand people, (National Planning Commission, 2006). The population is growing at a very fast rate with large unemployment graduates living together in the population. Due to high level of unemployment in the Local Government Area, people have adopted dysfunctional methods such as pick-pocketing, kidnapping, assassination, political thuggery, prostitution, defrauding and so on, in order to provide themselves with income and enhances their societal survival.
People living in AMAC Local Government Area see these dysfunctional methods as an alternative to their unemployment status in the area, as the government have failed to provide the unemployment opportunities needed as one of the basic necessity in life.

Base on the above statements, many questions arise like, why is the rate of unemployment at an alarming rate in AMAC Local Government Area; despite the area richness in mineral and natural resources, and what are the destructive effect of these social phenomena to the people of AMAC Local Government Area?.

1.3 Research Objectives

The general objective of the study is to examine the causes and effect of unemployment among the graduate in AMAC LGA in FCT.

Specifically, the study seeks to:

  1. Identify the causes of unemployment among the graduate in AMAC LGA
  2. Examine the socio-economic consequences of unemployment among the graduate in the
  3. Assess the perception of the effects of graduate unemployment on community development

1.4 Research Questions

This study seeks to answer the following general and specific questions:

  1. What are the perceptions of unemployment on the graduate of AMAC LGA ?
  2. What are the causes of unemployment on the graduate of AMAC LGA?
  3. What are the consequences of unemployment problem on the graduate?
  4. Identify the challenges faced by the unemployed graduate in this area?
  5. What are the solutions to the problems of unemployment on the graduate?

1.5 Significance of Research

The findings of the study provide evidence to the civil societies and Government to have better views on the graduate unemployment in Nigeria. In the light of this observation, it is envisaged that the results contribute in filling gaps in the literature on graduate unemployment in Africa. The study conceptualizes graduate unemployment differently from the ILO‟s definition and therefore the outcome is useful to inform policy on conceptualization of unemployment.

Specifically, the findings and recommendations of this study provide a framework on the effect of unemployment among the graduate to the officials of AMAC LGA in order to address the problem from their end. This will help the Assembly to fashion out appropriate intervention programmes to address the canker. By so doing, the general economy in the will grow to add on to the national economy. Moreover, the outcome of the study will guide the chiefs and opinion leaders in the communities in the to have a better view on the problem in order to contribute meaningfully in all programmes initiated by Government and the development partners to address the problem.

1.6 Scope and Limitation of the Study

The main study area is AMAC. While other assemblies could have been considered, the high incidence of graduate unemployment makes the an ideal area for the study. Generalization of outcome of the study will therefore be done with a greater caution.

The main constraint of the study was that the research was piloted in AMAC LGA in the FCT of Nigeria and the outcome might not reflect the general view of the unemployed graduate in other Regions of Nigeria. The unwillingness of respondents to give out information to enhance the study was also a difficulty to the research.

1.7 Organization of the Study

The study consists of five chapters. Chapter one describes issues such as the background, the problem statement and objectives of the study. Chapter two reviews the related literature and the theoretical perspectives of the study. Chapter three discusses the various methods of the study while chapter four continues with data analyses and discussion of the results. Chapter five then concludes with the summary of the results and policy recommendations.

Chapter Five

Summary, Conclusions and Recommendations

5.1 Introduction

This chapter focuses on the summary of the key findings of the study, the conclusions drawn from the findings and policy recommendations based on the conclusion. The chapter begins with discussions on the summary of the findings. This is followed by sections on the conclusion and the policy recommendation.

5.2 Summary of Findings

The study started by estimating the incidence of graduate unemployment and like many other communities in Nigeria, the incidence of graduate unemployment was found out to be very high in AMAC LGA. The first task was to identify the causes of graduate unemployment in the and low level of education among the graduate appears as the most dominant causes of graduate unemployment. Among other things, lack of relevant vocational skills and rural-urban migration also came out as other determinants of graduate employment in AMAC.

Apart from identifying the causes of graduate unemployment, the study also sought to examine the socio-economic consequences of unemployment on the graduate in the . In respect to this, the study found out that unemployment could lead the graduate to engage themselves in violence related activities, which may destroy their future prospects. Relating to this is a finding that unemployment also cause the graduate to engage in social vices such as robbery to make a living.

Finally, the study assessed the perception of the effects of graduate unemployment on community development and found out that the unemployed graduate are usually used by some people to perpetrate mayhem in the communities. Again, the unemployed graduate are mostly behind the political party agitations in the communities. Also, because these people do not work, they do not pay funeral and other community levies.
5.3 Conclusions

The low level of education that was found to be the reason of graduate unemployment is in line with the literature. This is because certificate first has become a major yardstick for employment in the Nigerian labour market. Therefore, the study concludes that low level of education is a potential reason for graduate unemployment. Relating to this is the finding that lack of vocational skills could also be a reason for graduate unemployment. This is probably because the graduate who have vocational skills could establish their own enterprise. Therefore, the study concludes that acquisition of vocational skills could reduce graduate unemployment.

Again, rural-urban drift in Nigeria usually involve the graduate who have run away to the urban areas in search of non-existing jobs. As this continuous, the number of graduate unemployed will be escalating. The study concludes that rural-urban migration is a potential reason for the increases in the incidence of graduate unemployment in AMAC LGA.

That unemployment render the graduate time and space to engage themselves in violence related activities sounds logical. This is because as the graduate idle around they tend to be lured into violent and crime related activities. The reason could simply be that such engagement would could be monetary rewarding. Therefore, the study concludes that graduate unemployment is a potential cause of crime related violence in AMAC LGA. Relating to the above is the finding by that study that the unemployed graduate are mostly behind the political party agitations in the communities. Most of this graduate do not have relatives around who could who give them food. Therefore, any job that comes their way which could give them money is acceptable. However, as they tend to engage themselves in such activities, they put everybody in the community at risk. The study therefore concludes that anti-social activities of the unemployed graduate is a serious security concern.

5.4 Recommendations

Based on the conclusions made on the findings of the study, the following policy recommendations are suggested:
Government of Nigeria, the development partners as well as all stakeholders of education should endeavour to extend education to all Nigerians. The existing policies such as free compulsory universal basic education (FCUBE) should be strengthened to effectively achieve its objectives. Parents who refuse to send their children to school should be sanctioned to serve as deterrent to others.

There must be proper funding of tertiary institutions. In this regard, every government must equip the institutions of learning located in every part of the country whether technical or vocational, with the necessary equipment that will make the graduates to acquire the knowledge that they need which will keep them employed even when any company does not employ them.

Information marketing is an important skill that can transport the Nigeriaian unemployed graduate from rag to riches. The most important thing about information marketing is that it does not just secure employment for the graduates but as well develop people who are into it on various areas. Most of the graduates who are into information marketing today did not pay anybody to acquire the skill but learnt it through research work on the internet. This has been lasting solution to graduate unemployment in neighbouring states.

Skill acquisition is important, helpful, lucrative, and promoting. Skill is an important way of investing in the graduates. The skill graduates acquire will help them to be publicly employed and also self-employment. Both government and non-governmental organizations are expected to contribute their quota in helping the graduates to acquire skills. They can offer that in the form of scholarships to the graduates. Practicing this will help the graduates to earn money for their living and train others. Following this trend will help in the reduction of the percentage of the world unemployed graduates.

A lasting solution to graduate unemployment is devising means to stop corruption which in turn will prevent the governing body from money laundering. Strong anti-corruption bodies should be established and they are to be independent of government. Punishing any government official caught in corrupt practice is an important tool to be used to create employment for the Nigerian graduates. Irrespective of the class of offence the official committed and that is stamped corruption, adequate punishment is to be exercised on the offender. The fight on corruption will keep more funds in any country and the fund used to generate employment for the graduates.

Rural-urban migration in Nigeria has been discussed for many years in the Nigerian media. In the 1970s, a policy was put together to ensure rural development and transformation. That the graduate are still migrating to the urban centres means all is still not well with our rural areas. This study suggests that Government should revisit this policy to put in place proper mechanisms to develop the rural communities in Nigeria. One thing that is lacking in the rural communities for which reason the graduate move to the urban areas is unemployment. The study therefore suggests that one district one factory policy could be used to initiate jobs in the rural communities in order to prevent the graduate from moving to the urban areas.

Again, the police should be equipped to prevent all graduate related crimes and violence. Community police could be relied on to check the excesses of the graduate. Again, the rich, chiefs and politicians who use the graduate to perpetrate violence should be sanctioned severely to deter others.

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