ECONOMIC EFFECT OF UNEMPLOYMENT IN THE NIGERIA ECONOMY (A STUDY OF IGBO ETITI NORTH)

CHAPTER ONE

INTRODUCTION

1.1     GENERAL BACKGROUND OF UNEMPLOYMENT

According to the advanced learner dictionary, Unemployment is defined 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 are concentrating mainly on the Economic effect of unemployment in Nigeria Economy. In particular Emphasis on Labour which is the most important and active factor of production which simple means, that without Labour all other factors will not be put into practice.

Then all other factors are regarded as passive factors of production.

Unemployment is a very dangerous phenomenon to an Industrialized economic system.  Further primitive communities in

Nigeria was usually self-sufficient and no unemployment problem, through their standard of living is a very low living. They share the work that had to be done and any spare time easy enjoyed as leisure.  There is still little unemployment in Nigeria engaged in the production of primary product though these communities may suffer a general reduction in their product, fall in the world market. We often advocate for Industrialization as a penance to unemployment problem but in as much as that is true it is also very important to know that this Industrialization Coupled with the division of labor and specialization bring along with them this virus problem called unemployment to Industrial progress, how wonder it was the leading Industrialized nation that were the first to introduce scheme of social security.

This ugly and nerve Cracking Carter- worm which has right from time been controlling its disastrous head in the blood stream of the general populaces of the worlds has been a thing of concern be great philosopher of economist and socialist of the olden days. This has led them to come up with different ideal theories and belief all in gust to recommend a drug for this disastrous disease called unemployment.

Anyacle (1995- 214) It stated that unemployment may be defined as a situation where some people who fall with the age the working population capable and willing to work, but are unable to obtain a befitting work to do.

1.2            PEOPLE ASSOCIATE WITH THE SUBJECT MATTER

Anyaele (1995:214) stated that the problem has become continually without solution being in sight it has constituted itself into one of the worst enemies of the populace in this part of the world. That the problem unemployment has been exacerbated by the previous and retrenchments unbridle rural urban migrate. Etc.

Unemployment is a great problem associated with both rural and urban communities of the Nigeria economy it results to the following problems to Nigeria.

A)              Threat to peace: The unemployed Constituted available book for political troubles shooters in a Country.

B)               Escalation of Crime Rate: An idle mind they say is the devils workshop, and as a result of this many unemployed youths and able bodies men and women engages themselves in crime such as armed robbery, prostitution, etc in order to earn living.

C)               It causes migration: this is to move from one place to go and live or work in another place. This can be rural urban or from one Country to another which creates vacuum in a nation march to economic and social development.

D)              Waste of Manpower: Unemployment especially that of graduates waste the much needed manpower which delays the economic development of the nation Nigeria.

E)               Increase in dependants: The unemployment people increase the number of dependants and contribute in sapling the income of their families instead of contributing to them.

F)                Reduction in Investment: the money spent in educating the unemployed and the once spent in them as depredates should have been invested in one business or another.

1.3     THE PROBLEM THAT WE ARE CONCERNED WITH IS HOW TO CURB RURAL- URBAN MIGRATION.

Rural urban Migration is the movement of people from one Countryside or Villages to Cities or Town. This rural urban is a reaction to some of the prevailing conditions from the rural area to the urban areas as multifarious reason. The causes of this rural urban migration is know as push and pull factors. Pull factors are those things within urban areas that attract people in the rural areas. These push and pull factors including the following.

LACOF SOCIAL AMENITIES: - Where there is no availability of recreational facilities in the urban Cities, higher education employment opportunities, marriages, natural disaster, political.

1.4            THE IMPORTANCE OF STUDYING THE AREA

(RURAL – URBAN MIGRATION)

The main importance of studying this rural – urban migration is to help reduce the number of people that will move out of the countryside or the villages to cities or town.  To crib this mass movement of people from rural urban areas, the following should be done by the federal government of Nigeria.

vEstablishment of industries in the rural areas.

vProvision of recreational facilities.

vImprovement of our Agricultural system

vEstablishment of higher Institutions in the rural Areas.

This problem of unemployment to the Nigeria economy is to find a sound and solid solution to it (unemployment).  The Federal government of this Country Nigeria should adopt the following measures to eradicate this particular problem.

A)              The government should provide sound and sustainable education and staff developments, because when education is functional and qualitative it makes the recipient both independent in thoughts and action. The training and development of staff increases the skills the workers to meet the challenges of the time.

B)               The government should provide social amenities to the rural areas. This provision of social amenities will reduce migration and make many school leavers to accept to work and reside in rural areas.

C)               The government should establish Industries; the establishment of many Industries will create more employment opportunities.

D)              The government should control the population of the economy. Optimum population will help to solve our unemployment problem because it will brings our population to equilibrium point to march with our available resources.

E)               The government should create more state and local governments; this should be done based on the available resource in order to create more employment opportunities.

1.5            DEFINITION OF IMPORTANT TERMS.

In this aspect we are concerned with the types of unemployment in Nigeria economy, they are as follows: -

A)      FRICTIONAL UNEMPLOYMENT: -

This type of unemployment arises when people leave their present job with hope of getting another one or a new one, but fails at that time. It may or may not be a temporary unemployment depending on the prevailing economic situation.

Therefore frictional unemployment is the period between the worker left his former work and the time of getting a new job or work.

B)      SEASONAL UNEMPLOYMENT

This type of unemployment is caused by seasonal change that affect some types of work, for example workers that work in road construction companies remain unemployed during raining season.

On the same hand farmers stay idle during the time in between harvesting and planting periods.

C)      SEARCH UNEMPLOYMENT

This type of unemployment occurs when some people turn down offer of work in search of better-paid employment.  How long this search will last depend on he prevailing economic situation in the Country.

D)      STRUCTURAL UNEMPLOYMENT:

Unemployment is as a result of slight change in the Industries structure of a country, workers will be retrenched as a result. This is causal by economic recession and it happened in Nigeria in 1984 when firms folded up as a result of this.

E)      VOLUNTARY UNEMPLOYMENT

This type of unemployment undecorated occurs when some people refuse to take up any paid employment. That is to say that they voluntarily decide not take up any paid employment for example some husband may order their wives not to do any type of work but to stay at home as full time house wives.

F)      DEFICIENT DEMAND (CYCLICAL) UNEMPLOYMENT:

This type of unemployment occurs when there is decrease in the quantity of goods demanded or there is over production, which result to fall in prices.  Industries will be affected and the may cause lay off of workers of the Industries that are affected.

G)      UNDER EMPLOYMENT: -

This type of employment result when a workers potential is under utilized or when a worker is paid less than the effort puts on the job. E.g. A graduate doing the work of a cleaner.

1.6     REFERENCE

Hansan J. Liayd   (1997) A textbook of Economic 6th edition London. E.L.B.S. and Moe Donald and Evans.

Dr M. Fogiel  (1980) The Economic Problem solves New York. Research and Education. Association.

J.U. Anyaele   (1991) Comprehensive Economics for Senior Secondary School: Lagos Johnson Publisher Ltd.