PROBLEM OF UNEMPLOYMENT FACED BY NIGERIA GRADUATES IN THE LABOUR MARKET

TABLE OF CONTENTS

CHAPTER ONE

1.0     INTRODUCTION        

1.1     BACKGROUND OF THE STUDY 

1.2     STATEMENT OF THE PROBLEM

1.3     OBJECTIVES OF THE STUDY     

1.4     RESEARCH QUESTIONS

CHAPTER TWO

2.0     LITERATURE REVIEW

CHAPTER THREE

3.0     RESEARCH METHODOLOGY

3.1     RESEARCH DESIGN

3.2     AREA OF STUDY

3.3     POPULATION OF THE STUDY

3.4     RESEARCH SAMPLE AND SAMPLING TECHNIQUE

3.5     INSTRUMENT FOR DATA COLLECTION

3.6     VALIDITY OF THE INSTRUMENT

3.7     METHOD OF DATA COLLECTION

3.8     METHOD OF DATA ANALYSIS

CHAPTER FOUR

4.0     DATA ANALYSIS AND PRESENTATION

CHAPTER FIVE

5.0     SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION

5.1     SUMMARY

5.2     CONCLUSION

5.3     RECOMMENDATIONS

5.4     LIMITATION

5.5     SUGGESTION FOR FUTHER STUDY

REFRENCE

APPENDIX

CHAPTER ONE

1.0                                  INTRODUCTION

1.1                   BACKGROUND TO THE STUDY

Nigerian has the potential for rapid economic growth and development, given her rich human and material resources. Yet, the economic performance of the country has been described as erratic, dismal, truncated and largely unimpressed (Ajayi, 2002; Iyoha and Oriakhi, 2002; Kayode, 2004; Ekpo, 2008). The poor growth performance of the economy is depicted in the rising incidence of poverty, massive and graduate unemployment, skyrocketing inflation, worsening balance of payments disequilibrium, monumental external debt burden, widening income disparity and growing fiscal imbalances, which taken together constitute Nigeria’s crises of underdevelopment.

Gbosi (2006) defined unemployment as a situation in which people who are willing to work at the prevailing wage rate are unable to find jobs. A more encompassing definition is provided by the International Labor Organization (ILO) as cited in Akintoye (2008) thus: “ the unemployed is a member of the economically active population, who are without work but available for and seeking for work, including people who have lost their jobs and those who have voluntarily left work” (p.98). Unemployment assumed a doomsday scenario in Nigeria a decade after political independence.

Of all the problems facing Nigeria in recent times which are being reported daily in some national newspapers and magazines, such as insecurity challenges, assassination of political opponents, feud over chieftaincy affairs, bunkering, willful vandalization of pipelines, interreligious crisis, armed robbery, kidnapping, bribery and corruption, examination malpractice, cultism in educational institutions, incessant strike by workers over poor conditions of service and high rate of unemployment among Nigerian graduates, none is as virulent, persistent and agonizing as the problem of high rate of unemployment among Nigeria graduates. The number increased to thirteen in 1977, while eight additional Universities were established in 1983. Moreover, based on the recommendations of the Longe Commission (Longe Report, 1991); and the promulgation of Act No.9 of 1993, the Federal Government decided to lift ban on the establishment of private Universities in the country. This Act repealed the abolition and prohibition of the private Universities upon satisfying the laid down regulations and guidelines and getting government approval. Moreover, the legal support for the establishment of the private Universities in Nigeria was provided by the Act. In September, 1993, the Federal Regulatory Agency, the National Universities Commission started issuing application forms to prospective proprietors of the private Universities.

 Account by Akintoye (2008) showed that between 1970 and 1980, national unemployment rate rose from 4.3 to 6.4% and further rose to 7.1% in 1987. The author attributed this development to the economic depression which engulfed the nation form 1980, resulting in massive closure of businesses and retrenchment of workers. This was followed by the placement of embargo on recruitment which further worsened the unemployment situation. However, the author reported that the Structural Adjustment Programme (SAP) had a salutary effect on job creation leading to a sharp fall in unemployment rate from 7.1% in 1987 to 1.8% in 1995. Thereafter, unemployment figure hovered around 4% between 1996 and 2000. One worrisome trend in the Nigeria labour market of recent has been the growing incidence of unemployment among professionals such as accountants, engineers and other graduates from universities and other tertiary institutions. Akintoye (2008) reported that graduate unemployment as a percentage of total unemployment rose from 1% in 1974 to 4% in 1984. Dabalen et al. (2000) also reported that graduate unemployment accounted for 32% of the total unemployed labour force between 1992 and 1997. This growing incidence of graduate unemployment in the face of acute skill shortages presents a paradox which further complicates the analysis of labour market distortions in Nigerian. Expectedly, employment generation (or unemployment reduction) has remained the central focus of macroeconomic goals in Nigeria. It is a continuing policy and responsibility of the federal government to use all practical means to promote higher level of employment, production and purchasing power (Essien and Atan, 2006). In this study, attempt is made to contribute to the resolution of this paradox by taking a look at the demand and the supply sides of labour market for university graduates in Nigeria as well as appraising the existing gap in the employment market for university graduates.

1.2     STATEMENT OF THE PROBLEM

Unemployment has been on the increase in Nigeria for quite some decades now. The problem of unemployment in Nigeria is one which has lingered for so long and Nigeria is yet to find a lasting solution to this problem. Nigeria as a country is characterised by high rate of youth unemployment; a situation where university graduates roam around the streets in search of jobs which are not forthcoming. Even where it is available, the graduates barely have the qualification for the job as the employers ridiculously will insist they must have had some years of experience before they can be employed (Alanana, 2003).

This situation has been attributed to general lack of skill by the youth as many have not acquired the requisite skills to secure jobs in the formal sector, the high population growth rate in the country producing a large army of labour which is mostly unskilled. More so, many youths are willing to do business and improve their standard of living but blame their short handedness to inadequate capital and or lack of capital.

Also, business tycoons and entrepreneurs have come clear on the issue of unemployment in Nigeria, claiming that jobs are not the problem but that our youths are not just employable (Okojie, 2013). Due to this problem, youths take up jobs for which they are ill suited which leads to low productivity hence underemployment though the Nigerian government claims to be trying all it can in tackling this problem by putting some policies in place, the continual increase in the unemployment rate suggests inefficiency on the part of the policy makers, this situation can be likened to that of a doctor prescribing the wrong drug for a sickness (Steve, 2005).

The Nigeria economy, like those of other developing third world countries, is poised for a very rough time. Statistics indicates that over 70% of the population is below the poverty line of 1$ a day. Unemployment rate, officially said to be 5%, but in reality perhaps, doubles that, and has remained very high. Indeed Nigeria competes for the highest rate of youth and graduate unemployment in Africa which says quite a lot, not just about investment in social capital, but also its utilization (Luke, 2008).

Attributable also to the view of policy makers and the youths, employment means a job with salary and working for someone else.

1.3 OBJECTIVE OF THE STUDY

The primary objective of this research work is to investigate the problems of unemployment among the Nigeria graduates. To x-ray the causes of unemployment among the youth also to ascertain the impact of youth unemployment in Nigeria. The specific objectives are;

1.                 To find out the causes of unemployment among the youths in Nigeria.

2.                 To ascertain the impact of youth unemployment in Nigeria.

3.                 To identify how youth education affects unemployment.

4.                 To proffer solutions to the problem of youth unemployment.

1.4     RESEARH QUESTIONS