BACKGROUND OF STUDY
Unemployment is an issue that has plagued the Nigerian economy for a long time and has generated a lot of research in the country. Nevertheless, it is one of the pivotal social epidemics confronting Nigeria due to its unending rise. This menace causes frustration, dejection and high levels of dependence on family, friends and government.
Unemployment can be referred to as a symptom of macroeconomic illness which could either be “voluntary” or “involuntary”. Voluntary in the sense that an individual or group of persons chooses not to work because they have a means of support other than employment for instance an idle rich man. While involuntary when an individual or group of persons are willing to work at the prevailing rate of pay but unable to find work. In general, unemployment exists when a fit and eligible individual does not have a job or work to do for some compensation.
According to Doreo Partners (2013), unemployment rate in Nigeria is growing at the rate of 16% per year with the youths being impacted the most and accounting for three times the general unemployment level. Youth unemployment have significantly contributed to the dramatic rise in social unrest and crime such as Niger Delta militancy, Boko Haram and the Jos crisis. One implication of the above is that in the long run most of the youths today will be parents in their mid-life years, and with little or no adequate skills in a fast emerging competitive global economy, it is doubtful how they can propel the needed wheel of development.
According to the National Bureau of Statistics (2012), the Rate of Unemployment in Nigeria increased to 23.90% in 2011 from 21.10% in 2010. Nigeria’s Unemployment Rate averaged 14.60% from 2006 until 2011, reaching an all-time high of 23.90% in December of 2011 and a record low of 5.30% in December of 2006 with this increase in the rate of unemployment at 23.90% remaining constant in 2014 with the population at 166.21 million. With this situation, unemployment has remained one of the most persistent and unmanageable problems facing Nigeria.
Nigeria has one of the highest levels of youth unemployment in the world as over 60 to 65% of its youths are unemployed (Federal Ministry of Labour and Productivity Report, 2008). The Federal government recently acknowledged that about 80% of Nigeria’s youth are unemployed. According to the National Bureau of statistics (2010), the national unemployment rates for Nigeria between 2000 and 2009 showed that unemployed persons constituted 31.1%, 13.6% in 2001, 12.6% in 2002, 13.4% in 2004, 13.7% in 2006, 14.9% in 2008, and 19.7% in 2009. With respect to age group, education and sex, the data showed that persons aged between 15 and 24 years had 41.6% rate of unemployed. For persons between 25 and 44 years, 17% were unemployed. For persons with primary education 14.8% were unemployed while those with post secondary education had 21.3% unemployed. As regards sex, data showed that males constituted 17% of the unemployed while females constituted 23.3 percent (Salami, 2013).
Although the youths are not the only employable group in the demographic structure, the importance of youth unemployment cannot be over-emphasized. As the Vision 20: 20/20 Economic Blueprint Report made the observation that of the 6 million Nigerians graduating annually from the educational system, only about 10% are often employed, thereby leaving about 4.5 million to enter the labour market annually (a combination of the unemployed, low-wage employed and those socially excluded), from the teeming population of about 140 million people. With the minister for Youth Development, Mallam Bolaji Abdullahi declaring that, 67 million youths are unemployed and 80% of that number not possessing a university degree (Chukwuma, 2013).
In Nigeria, it is expected that for a positive change to emanate, both individuals and government at all levels should join hands to build a nation where everyone is resourceful and useful. But what then is the assurance that large armies of unemployed youths will not engage in activities that would undermine the stability of democracy in Nigeria? As every year thousands of graduates turnout for whom there are no jobs. Nigerian streets are littered with youth hawkers and bike riders who ordinarily would have found gained employment in some enterprises; or would have demonstrated their skills and resourcefulness if there were to be enabling environments and reliable management structures on ground. Instead, the youths have now shifted their attention to cybercrime, militancy, violent crimes, kidnapping, restiveness, political instability, armed robbery, insurgency and so on as the list is endless and these social evils unveil themselves as the menace of unemployment is not tackled.
Various economic and social analysts have attributed the problem of youth unemployment to a poor educational system, over dependence on the oil sector, bad leadership, political thuggery, lack of vocational guidance, over population, the under optimisation of the agricultural sector with a consequent mass movement of able bodied youths from the rural to urban areas in search of the none existent white collar jobs and so on.
Unemployment in its entirety is a serious problem for the Nigerian economy. Not only is it a severe personal blow to those concerned, but it is also an economic waste. Perhaps the main cause of unemployment is a personal one to those who are unemployed especially the youths. However, if they suffer then the whole economy suffers.
It is against this backdrop that this study is set out to investigate and unveil facts about youth unemployment, its impact and development implications on Nigeria’s economy.