Unemployment Problems And Poor Establishment Of Industries

Project and Seminar material for Public Administration

Unemployment Problems And Poor Establishment Of Industries


Not two long ago, Abia state was under siege as a result of the activities of robbers and kidnappers. Businessmen and other prominent people were either killed or kidnapped. As a result, investors were scared away while construction companies abandoned their equipment on site and field. This began to have a toll on the socio-economic activities of the state.

The level of labour being consumed determines the progress of any given society. This is because it lead to a reduction in crime/criminal act and non-wastage manpower, therefore unemployment becomes a very crucial issue requiring great attention. In Nigeria, this is the same the establishment of industries is very vital for the solving of unemployment problems.

This study is concerned with the problem of unemployment and poor establishment of industries in Umuahia North L.G.A. The study centeres on identifying, the problems of unemployment and how poor establishment of industries has contributed to the increase of unemployment related problems. Find out the problem of unemployment in Umuahia North, to proffer solution to this nagging issue.

The population of the study is 200 and a sample was determined using field random sampling method. It is a survey research and researcher used both secondary and primary source of data to collect relevant data for the study.
The study revealed that unemployment affected ther growth of the economy and the increase rate of unemployment is one of the causes of various crime in Umuahia.

It is therefore recommended that government should create job through the establishment of industries in Umuahia North L.G.A and provide assistance to those wishing to establish industries in the rural areas.
In conclusion, unemployment problems is as a result of poor establishment of industries in Umuahia North L.G.A. of Abia state.

Chapter One

1.0 Introduction

1.1 Background of the Study

To adequately understand the problem that result from unemployment due to poor establishment of industries in Umuahia North Local Government of Abia state, these arose the need for an attempt at defining the term unemployment.

Herby (1974) in his revised and updated Oxford Advanced Dictionary of current English defines the social evil, unemployment as the state of being unemployed and the amount of unused labour.

The global economic depression which stated in the early 1980s has caused a rapid deterioration in Nigeria economy, industries output has become very low and commercial activities were consequently reduced leading to the loss of employment by thousands of Nigerians. Ayo (1998).

This trend was confirmed by the labour force (force survey) conducted by the national manpower board in 1961/1967. this situation has become so bad that the end of 1985, the unemployment situation had reached desperate and alarming proportions (10% – 12%) not only in the urban area while 1974 was limited to the urban centres. The result affected is the increase in different kinds of anti-social activities such as, housing breaking, robbery, drugs and presently kidnapping, Eberinwa (2005).

In an effort to redress the situation and stem the tide of increase anti-social activities arising from youths unemployment, the government in 1o986 introduced (SAP) structural Adjustment Programme for two years. Agbora (2006).

Various development plans the followed suit had it as an objective to effectively solve the problems of unemployment. This has led to the initiation of various agricultural programmes. Banks and industries were in the rural areas to give job to the rural dwellers. Many other programmes and policies here established but were not effective enough as to restructure the economy.

Privatization and commercialization of certain government establishment led to workers being laid off from their job resulting in greater unemployment.

The situation has reduced to various calls by the government for all stakeholders in Nigeria nation of which Abia state is one to help in the establishment of industries that will absolve millions of youths without job which has lead to arm robbery, kidnapping and prostitution etc.

1.2 Statement of Problem

The problem of unemployment in Umuahia North Local Government area of Abia state is becoming mere unbearable as it is threatening the Nigeria economy as people find it difficult to service. An alarming structure of unemployment emerged with the rising joblessness among graduates of tertiary institutions. That is why young school leavers (graduates) now roam about the streets in search of jobs. Which they never find and it has caused untold hardship and suffering to the people.

The poor establishment of industries in Umuahia North Local Government of Abia state has increased unemployment problem in Abia state which has made our graduates to involve themselves in some anti-social activities to meet up. The problem now is finding solution to unemployment problems in Abia state

1.3 Objectives of the Study

The specific objective of the study include the following

  1. To identify the problem of unemployment in Umuahia North L.G.A of Abia State.
  2. To find out how poor establishment of industries has increase unemployment in umuahia North L.G.A of Abia state.
  3. To determine the contribution of government of Abia state in solving unemployment problem in umuahia North L.G.A of Abia state.

1.4 Research Questions

  1. What are the causes of unemployment?
  2. What are the constraints militating against the establishment of industries in Umuahia North L.G.A of Abia state?
  3. What are the things government will do to eradicate unemployment?
  4. What effort has government done to establish more industries in Umuahia North L.G.A of Abia state?

1.5 Statement of Hypothesis

  • Hi: There is a relationship between unemployment problems and poor establishment of industries
  • Hi: There is no relationship between unemployment problems and poor establishment of industries.
  • Hi: (alternative hypothesis)
  • Ho: (null hypothesis)

1.6 Significance of the Study

This study will benefit the following: Policy makers, the Government, the Academia, the General Public, the study will help policy makers to formulate policies that will reduce unemployment. The study will also help students conducting research on a related topic.

1.7 Scope and Limitation of Study

This research work is limited to Umuahia North Local Government Are of Abia state and the unemployment problem level, is also considered the poor establishment of industries.


There were a lot of constraints or problem encounter in gathering information for this research work but the major constraints are as follows.

The Home Constraints:

Due to the short time given for this study, the researcher could not get all the required information needed for the study.


The researcher has not got enough money to embark on this study due to money constraints. The researcher could visit places where necessary information that the relevant to the study could be obtained.

Attitude of the Respondents:

Some respondents were unwilling to corporate with the researcher because they felt they have to benefit from the study.

1.8 Definition of Terms

The general aim of having these terms defined, is to enable the reader to know the meaning of these words, if by any means he/she do not know them before, with the regards to the research work and a situation where the reader has not come across of them before, it tends to be immense help.


Oxford Advanced Dictionary (7th Edition) defined it as the people and activities involved in producing a particular thing or in a providing a particular service.


This is an individual who has the ability to see and evaluate business opportunities, gathering the necessary resources to take advantage of them and initiate appropriate action to ensure success. This could equally be defined as one who undertake an enterprise, e.g contractors, an organizer of musical and other entertainment.


This state of being unemployed, one who has no work to do regardless of his qualification. Our graduates are good examples.


A person who does manual job in order to make both ends meets.


These are facts given from which other may be inferred


The are people who correspond with the filling of the questionnaires of which other researcher use in obtaining his or her results.

The Study Area:

They are areas chosen for research (examination). umuahia North Local Government Area of Abia state is the study with regards to the research and its located at the reforms of 1999 and has projected population of 220, as at then.

The study areas falls within the tropical rain forest of West Africa. The native engage mostly in farming for subsistence and most of them are petty trader and artisans. Majority of them are businessmen at Ariana main market Aba. The study area has fairly good network of roads and it comprises of about thirty-one villages, the people are endowed with rich culture and a mixture of Christianity and paganism is prevalent in the area. The indigenous language is Ibo. It was also observed the population size is 252.524 (1991 census).

Chapter Five

Summary of Findings, Conclusion and Recommendation

5.1 Summary of Findings

The problem of unemployment and its impact on economic development of Nigeria is what propelled the research to investigate on solving unemployment problem through the establishment of small scale industries. In analyzing the collected data, the followings findings were observed. Thus;

  1. Accelerated economic growth and development is a “conditio sine qua non” (condition that you can do without) for improving the quality of life
  2. Small and medium scale enterprises contribute to global economic growth and development
  3. The establishment of small scale industries in Aboh-mbaise LGA will bring about innovation and invention
  4. Unemployment does affect the economic growth of Nigeria
  5. The establishment of small-scale business will help to solve unemployment problem
  6. Youths should be encouraged to develop and nurture entrepreneurial spirit
  7. Small-scale industries serve as a guide to the introduction of large scale business
  8. The youths can enhance sustainable development of the Nigeria economy through SMEs

5.2 Conclusion

Conclusively, it has become clear the role of small scale industries in employment generation can not be over emphasized. It not only solves the problem of unemployment but assists in revamping the economic growth and development by contributing in poverty alleviation. So many scholars have deliberated on the issue of unemployment and discovered that entrepreneurial activities should be encouraged among the youths so as to enable them to be self employed since the government cannot accommodate them all as a result of the population in Nigeria.

The government, through their policies should enact laws that will encourage the small scale enterprise in the country. This they can achieve by making the level of taxation more favourable for the entrepreneurs and to provide the necessary infrastructural facilities within the nation.

5.3 Recommendation

Owning to the necessity and importance of small scale industries in the generation of employment of improvement of the economy, the following recommendations are recommended. Thus:

The different tertiary institutions in Nigeria should endevour to lay more emphasis on the concept of Entrepreneurship development among the students. This will enable them to equip themselves so as not to be stranded after graduation.

The government should provide favourable ground through their policy that will promote the growth of small scale industries within the country as this will great more room for employments and help in the revamping of the economic development and growth

The financial institutions such as banks should be able to give loans to entrepreneurs with lower interest rate so as to encourage them in carrying out their entrepreneurial activities.

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