THE ECONOMIC EFFECT OF UNEMPLOYMENT ON THE NIGERIA ECONOMY (A CASE STUDY OF NNEWI NORTH L.G.A. IN ANAMBRA STATE)

CHAPTER ONE

1.1            GENERAL BACKKGROUND OF UNEMPLOYMENT

The Advanced Learners Dictionary defined unemployment as the amount of labour unused.  When a factor of production is not doing any job, we say it is unemployed.  In this project, we concentrate mainly on the effect of unemployment in Nigeria economy in particular, emphasis on labour which is the most important and active factor of production which simply means that without labour, all other factors will not be put into practice.  Then all other facts are regarded as passive factors of production.

Unemployment is a dangerous phenomenon to an industrialized economic system further primitive communities in Nigeria were usually self-sufficient and had not unemployment problem, though, they had to accept very low standard of living.  The people share work that had to be done and any spare time was enjoyed as leisure.  There is still little unemployment in Nigeria engaged in the production of primary products though these communities may suffer a general reduction in their products fall in the world market. Often we advocate for industrialization as a penance to unemployment problem, but in as much as that, it is true that it is also very important to know that this industrialization coupled with the division of labour and specialization bring along with them this various problem called unemployment to industrial progress, how wonder it was the leading industrial nations that were the first to introduce schemes of social security.

This ugly and nerve cracking cankerworm which has right from time been reining its disastrous head in the blood stream of the general populaces of the world has been a thing of concern to great philosopher of economist and socialist of the olden days.  This has made them to come out with concepts, ideals, theories and beliefs all trying to recommend a drug for this disease called unemployment.

Anyaele (1995:214) stated that unemployment may be defined as a situation where some people who fall within the age of the working population, capable and willing to work but are unable to obtain the fitting work to do.