CHAPTER ONE

INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Unemployment is one of the key social challenges currently confronting most
developing economies of the world (Patterson et al, 2006). Besides security
challenge which is currently Nigerias number one social problem; no doubt,
unemployment follows. Unemployment or joblessness occurs when people are
without jobs and they have actively sought work within the past five weeks
(International Labour Organization, 1982; Fajana, 2000). It is the consequence of
the surplus of labour supply over labour demand. The unemployment rate is a
measure of the prevalence of unemployment and it is calculated as a percentage by
dividing the number of unemployed individuals by all individuals currently in the
labour force. The higher the unemployment rate in an economy the higher would
be the poverty level and associated welfare challenges (Emeh, I. E., et al., 2012).
Unemployment has been grouped into two categories: first, the older unemployed
who lost their jobs through retrenchment, redundancy, or bankruptcy; and second,
the younger unemployed, most of who have never been employed (Oyebade,
2003). Though unemployment occurs to people of all age cohorts but its effect has
bitten more sarcastically hard on Nigerian youth.
In 2015, the National Population Commission said that the rate of unemployment
in Nigeria rose from 21.1 percent in 2010 to 23.9 per cent in 2011. The NPC, in a
report on its website, said the nations economic growth had not translated into job
creation. It said, Figures from the National Bureau of Statistics clearly illustrated
the deep challenges in Nigerias labour market, where the nations rapid economic
growth has not translated into effective job creation. The NBS estimates that
1

Nigerias population grew by 3.2 per cent in 2011, reflection rapid population
growth. In 2011, Nigerias unemployment rose to 23.9 per cent compared with 21.1
per cent in 2010(NBS,2012). It said the labour force swelled by 2.1 million to
67,256,090 people, with just 51,224,115 persons employed, leaving 16,074,205
people without work. The NPC said the lack of sufficient jobs resulted in
additional 2.1 million unemployment persons in 2011, up from 1.5 million
unemployed people produced in 2010. It added, Unemployment was higher in the
rural areas, at 25.6 per cent, than in the urban areas, where it was 17 per cent on
average. In the light of the countrys fast-growing population, efforts to create a
conducive environment for job created in 2011 was reported as 209, 239 by the
Federal Ministry of labour and productivity. 54% of Nigerian youths unemployed
in 2012-The National Bureau of Statistics. The National Bureau of Statistics (NBS)
in late in December last year said that 54 per cent of Nigerian youths were
unemployed in 2012. This fact was contained in the 2012 National Baseline Youth
Survey Report issued in Abuja by the NBS in collaboration with the Federal
Ministry of Youths Development. More than half, about 54 per cent of youth
population was unemployed.
Unemployment has reached an alarming situation today that is perhaps considered
the most serious of the problem affecting Nigeria and one that is steadily
worsening as the gap between the rapid rising member pressing for work and the
new employment opportunities being created widens.
In the developing countries such as Nigeria however employment benefits are not
available to the unemployed. The income level of the great majority of families
makes the provision of unemployment benefits virtually impossible thus those
unable to find jobs or these discharged from their previous employments are left to
2

fend for themselves. In developing countries majority of job seekers are therefore
forced to create employment for themselves particularly in the rural agricultural
sectors where they force disguised unemployment. In the context of this study both
those who are disguised unemployment. in the context of this study both those who
are disguisedly unemployed and those who are openly unemployed are lumped
together as the unemployed.
Thus unemployment is seen as the negative aspect of the economic process. An
unemployed person is one who despite his willingness and capacity to work is
unable to do so for reasons inherent in the organization of the commodity
production.
1.2 STATEMENT OF PPROBLEMS
Unemployment rates are particularly high among graduate and especially among
school leaves, giving rise increasingly to the problems of "educated
unemployment". Paradoxically, graduate unemployment seems to be correlated
with levels of education attained in some cases.
The problems of graduate unemployment reflect the contraction of jobs in the
modern sector and declining rate of job creation in that sector. It also suggests
serious labour market distortions related to the development and utilization of
human resources in the context of changing economic circumstances. further, the
problem of graduate unemployment is linked to the fact of many African countries,
as already noted, continue to record relatively high rates of population growth, and
the population structure of some of those countries is overwhelmingly young will
children of school going age accounting for as much as half of the total population
in some cases.
1.3 OBJECTIVE OF THE STUDY
3

The general objective of this study is to critically analyze the problems caused by
unemployment amongst graduates of higher institutions in Nigeria.
Specific objectives are:
1. To verify the major causes of unemployment in Nigeria
2. To find out whether graduates of higher institution encounter problems as
regards employment.
3. To determine whether governments have made efforts towards solving
unemployment problems in Nigeria.
4. To ascertain the impact of unemployment on Nigerian economy.
1.4

RESEARCH HYPOTHESIS

Ho:

Economic meltdown of the country is not responsible for unemployment in

Nigeria.

Hi:

Economic meltdown of the country is responsible for unemployment in

Nigeria.

Ho:

Graduates of higher institution do not encounter problems in their quest for

unemployment

Hi:

Graduates of higher institution encounter problems in their quest for

unemployment

Ho:

Government have not made efforts towards solving unemployment problem

in Nigeria

Hi:

Government has made efforts towards solving unemployment problem in

Nigeria

Ho:

Unemployment has no impact on Nigerian economy

Ho:

Unemployment has impact on Nigerian economy

1.4

RESEARCH QUESTIONS
4

i.
ii.

What are the causes of unemployment in Nigeria

What programmes has Nigerian government adopted in order to alleviate
the unemployment problems

iii.

What are the constraint militating against government efforts in solving

unemployment problems in Nigeria.

iv.
1.5

What is the impact of unemployment on the Nigeria economy

SIGNIFICANCE OF THE STUDY

This work is relevant to the government of Nigeria as it will aid them in proffering
solution to unemployment problem in Nigeria. It is also relevant to the unemployed
youths in Nigeria. It is if immense importance to future researchers who may refer
to the work.
1.6 LIMITATIONS OF THE STUDY
The major constraint/factors encountered are as follows:1.

Time constraints: Due to the time given for this study the researcher could

not get all the required information needed for the study
2.

Finance: The researcher has not got enough money to embark on this study

due to money constraints the researcher could not visit places where necessary
information relevant to the study could be obtained.
3.

Attitude of the respondent: The attitude of the respondents limited the

research work because some of the respondents were unwilling to corporate with
the researcher because they felt they have nothing to benefit from the study both
financially and otherwise.

CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1

INTRODUCTION

Graduates employment in Nigeria has one of the most disturbing problems. A

number of seminars, public debates and symposiums have been held in an attempt
to find solution to it. Graduate unemployment in Nigeria is caused by many
factors. Some of these factors responsible for graduate unemployment in Nigeria
include the following;
Rural - Urban migration
The rapid expansion of higher institution in the country.
The low expansion rate of the Nigeria economy.
Negligence of agriculture by both the state and the federal government.
Lack of interest in agric-business by Nigerian graduate.
The graduate unemployment situation in Nigeria especially among our educated
graduates who feel humiliated in the process of seeking for jobs and their feelings
of unwanted or uncaring by the government and social vices. For instance, the
student not of 1980 and unsuccessful coup of 1990 was as a result of graduate's
unemployment problem. And also some of our unemployed graduates engage in
certain social vice jived delinquency drug abuse, alcoholism, prostitution and other
problems that originate from unemployment are burglary and stealing owned
robbery, smuggling and economic waste.
One crucial assumption is that employment is a crucial component of development.
The rapid increase of graduate unemployment in the past years is a clear indication
of the fact that development is not accumulating in Nigeria.

The theoretical framework is that not adequate attention has been given to the
problem graduate unemployment in the country. A critical analysis of the causes of
graduate employment in the country. This study will also be useful to individuals,
directors and managers of public and private organization and other policy makers
towards the ultimate realization and eradication of graduate unemployment in the
country.
Of the eastern province; it has served as the seat of government for eastern Nigeria.
It has also served as political capital for the defunct three year old republic of
Biafra, east central state, and the former Enugu state up to august 26, 1991.
2.2 CONCEPTUAL FRAMEWORK
The history of unemployment is now the major problems the graduates are facing
particularly the graduates in Idah local Government Kogi State. Unemployment
has been defined by different people according Nigerian statesman May 28, 1986
unemployment connotes the scarcity of job both in public and private sectors.
Also according to weekly Star, August, 17 1986 unemployment is the state of
being unemployed that is to say people who are willing to work but there is no
work for them to do.
Unemployment has become one of the major problem graduates are suffering due
to the failure of government, refusing to plays a dominant role and actively
promotes private enterprises, establishes new enterprises with a centrally directed
mobilization of resources towards the definite objectives of solving the graduates
problem.
Unemployment appears to affect educated and uneducated men and women like,
rich as well as poor households graduates unemployment has been affected by
labour market problem, institutional weakness in employment of more
7

employment generation. Post experience suggests that the transition to rapid and
sustainable rate of economic growth will require setter public sector management
then has hitherto seen the case in other state.
The term unemployment according to Longman English Dictionary is the number
of graduate in a particular country or area who is willing to work but cannot get a
job. A graduate is someone who has completed a University Degree especially first
degree.

2.3

CAUSES OF UNEMPLOYMENT IN NIGERIA

There have been several researches on unemployment and its causes in developing
countries, especially Nigeria. Scholars have identified the following as the major
causes of unemployment in Nigeria as well as other developing countries; neglect
of agricultural sector, rural-urban migration, wrong impression about technical or
vocational education or training, corruption with its attendant grave embezzlement,
rapid population growth, low economic growth and activities, low investment,
leadership and managerial problem, lack of political will, outdated school
curriculum making Nigerian graduates unemployable, poverty, lack of adequate
youth development programmes, increase in the supply of educated manpower as a
result of producing more graduates than available jobs and more painfully, the
gradual collapse of manufacturing sector (Adesina, 2013; Salami, 2013;
Nwanguma, et al. 2012; Adebayo, 1999; Alanana, 2003; Echebiri, 2005; Ayinde,
2008; Morphy, 2008; Awogbenle & Iwuamadi, 2010; Okeke, 2011; Njoku &
Ihugba, 2011 and Anyadike, et al. 2012). Some of these studies were purely
empirical so the situation is a mirror of the now in the Nigerian society. These
related factors contribute to low job creation and because of increasing population
growth, the small labour market is unable to absorb the resulting army of job
8

seekers. This is further aggravated by the lack of infrastructural facilities, which

makes the rural life unattractive making youths to move to urban areas with the
probability of securing lucrative employment in the industries and to enjoy the
available social amenities. Salami (2013) emphasized lack of political will,
especially in fighting hard against corruption and enforcing vocational and
technical education as very germane to increase in unemployment rate in Nigeria.
Outdated school curricula and lack of employable skills are other identified factors
contributing to the growth of unemployment in Nigeria. Some scholars have
argued that the average Nigeria graduate is not employable and, therefore, does not
possess the skills needed by the employers of labour for a formal employment. The
course contents of most tertiary education in Nigeria lack entrepreneurial elements
that would have enabled graduates to become job creators rather than job seekers.
Presently, with over 97 universities in Nigeria (Federal, State and Private) and the
increasing demand for higher education, there has been the problem of suitable
employment for the varieties of graduates turned out by these higher institutions
every year. Ordinarily, this should not have been a problem, but the reality is that
the Nigerian economy is too weak to absorb this large number of graduates (Utomi,
2011).
Very importantly is the issue of corruption. Corruption, which Okafor (2011)
acknowledged as having permeated the entire social structure of Nigeria, has
robbed the country of developing a vibrant economic base. Funds meant for
development projects have been misappropriated, diverted, or embezzled and
stashed away in foreign banks, while some incompetent and corrupt bureaucrats
and administrators in the public enterprises and parastatals have liquidated these
organizations (Okafor, 2007). Also, there is no vibrant manufacturing sector which
has the capacity to absorb unemployed youths in Nigeria as according to Adesina
9

(2013), there are over 800 collapsed industries in Nigeria and over 37 factories
closed shops in 2009. About half of the remaining operating firms have been
classified by Manufacturers Association of Nigeria (MAN) as ailing, a situation
that poses a great threat to the survival of manufacturing in the Country. The
banking sub-sector, due to the ongoing reforms and consolidation has sent several
young men and women back into the labour market. Instead of the sector
generating employment, it is shrinking. The manufacturing sector has not fared any
better. For example, the number of persons in paid employment at the end of 2010
in the cement manufacturing sub-sector stood at 3,318 compared to 4,142 in 2009,
a decline of 19.9 per cent. Salami (2013), is of the opinion that Nigerias spiraling
youth unemployment can be said to have significantly contributed to the dramatic
rise in social unrest and crime such as Niger Delta Militancy, Boko Haram and the
Jos crisis.
An empirical research carried out by Nwanguma et al. (2012) on the causes of
unemployment in Nigeria as presented in the table below shows the respondents
views as regards the causes of unemployment in the Country.
2.4

EFFECT OF UNEMPLOYMENT ON THE ECONOMY

According to Alanana (2003), unemployment is a great problem associated with

both rural and urban communities of the Nigeria economy that pose 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.
10

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.

11

REFERENCES
Adesina, O. S. (2013). Unemployment and Security Challenges in Nigeria.
International Journal of Humanities and Social Science, Vol. 3 No. 7; April 2013
PP. 146-156
Awogbenle, A.C. and K. C. Iwuamadi (2010). Youth unemployment:
Entrepreneurship Development Programme as an Intervention Mechanism.
African Journal of Business Management, vol. 4, No. 6, pp. 831-835.
Nwanguma, E. I. E., Araboh, O. E., and James, J. (2012). Engaging Youth
Unemployment in Nigeria With Youth Development and Empowerment Programs;
the Lagos State in Focus. Interdisciplinary Journal of Contemporary Research in
Business; September 2012 Vol. 4, No 5
Njoku, A. and Ihugba, O. (2011). Unemployment and Nigerian Economic Growth
(1985-2009). International Association for Teaching and Learning (IATEL)
Proceedings of the 2011 International Conference on Teaching, Learning and
Change
Okafor E.E (2011). Youth Unemployment and Implications for Stability of
Democracy in Nigeria, Journal of Sustainable Development in Africa; Vol.13, No.
1. http://www.jsdafrica.com/Jsda/V13No1_Spring2011
Salami, C.G.E. (2013) Youth unemployment in Nigeria: A time for Creative
Intervention. International Journal of Business and Marketing, Vol. 1(2); pp. 1826, July 2013
Longman Dictionary of Contemporary English. 6th Edition.

12

CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1

INTRODUCTION

3.2

RESEARCH DESIGN

Research design is the plan for research project. It provides guidelines which
directs the researcher towards solving the research problem arid it researcher
problem and it may vary depending on the nature of the problem being studied
Akuzuilo (2005:50).
Design in research means preparing a mental plan or scheme of attack for solving
a problem in a systematic manner. The researcher in this study used all strategies
available in gathering and analyzing the data necessary for answering the question
at hand. The researcher used this research survey to collect relevant information
from unemployment graduates in Idah Local Government of Kogi State.
3.3SOURCES OF DATA
The sources of data used in this research work include both the, primary and
secondary sources.
3.3.1 PRIMARY SOURCES OF DATA
Primary data are data collected by the researcher himself from the field through
oral interviews and questionnaire. For this research, oral interviews Were
conducting among unemployed graduates in Idah Local Government of Kogi
State.
The questionnaires to be filled by respondents are so far the most satisfactory
method. The level of accuracy in this case is quite high as the respondents ticks
from a list of options that best explain in his own words. The possibility of the
13

omission or commission on the words of the respondent is almost nil as against the
oral interview.
3.3.2 SECONDARY SOURCES OF DATA
Secondary data on the other hand includes relevant books on the topic of research,
seminar write-ups, journal, magazines, newspapers, and bulletins. In an attempt to
gather sufficient materials for this work, the researcher made use of these materials
for this work, the researcher made use of these materials intensively. The internet
has also formed a vital sources of secondary data as economic issues of this nature
here forum where journals and best case scenario world wild are made available to
users of the web.
3.4

POPULATION OF STUDY

Ordinarily the term "population" means a large number of people living in a

geographical area, like a country, state or local government area. In research and
statistics, the term "population is used in a more specialized sense to include not
just people but also members of the target of the study as members of the target of
the study as defined by the aims and objectives of the researchers Akuezuilo
(2002), The choice of population will depend on the nature of the problem one
wants to investigate. The population size used in this Research work is 2000 taken
from unemployed graduates in Idah Local Government of Kogi State Nigeria.

14

3.4

SAMPLE DESIGN AND DETERMINATION OF SAMPLE SIZE

The sample size is normally dependent on the population under consideration and
on the discretion of the researcher. Whatever the decision about the respondents, it
might always be the right sample size possible since it likely to be a better
representation of the population. This is so because with a large sample size, the
data extracted are likely to be more accurate and precise. (Cochran 1963).
The researcher in this case used the Taro Yamane (1967:886), a simplified formula
for calculating sample size to determine the sample size used in this research as
shown below.
n=

N
1+ N ( e )2

Where

n = sample size
N = population of study
e = % (percentage)

Calculating the sample size

n=

2000
2
1+2000 ( 5 )

= 399

Therefore the sample size for the study if 399.

3.6 METODS OF DATA COLLECTION
The method used in this course of study is different in terms of data collection. The
instruments used under the primary and secondary data include.
INTERVIEWS
Before an interview is conducted, it is necessary that the researcher should
sufficiently be familiar with the subject matter so as to generate intelligent
15

questions necessary for comprehension analysis, interviews were conducted among

unemployed graduates based structed and unstructured questions which could not
be options that best explain in his own words.
3.6.1 QUESTIONNAIRE
The researchers in their study would design and distribute questionnaire so as to
gather and analyze data necessary for answering the questions at hand.
The research would use research survey to collect relevant information from
unemployed graduates within Idah Local Government of Kogi State as regards
problems they encounter in solving the problems of unemployment graduates.
3.6.2 SECONDARY METHOD OF DATA COLLECTION
Secondary method of data collection was adopted by the researcher through paper
presented by speakers at workshops, journal, magazine, new paper and bulletins
and also the internal.
3.7

METHOD OF DATA PRESENTATION

The researchers would make use of tables and percentages in presenting the
necessary data.
3.8

METHODS OF DATA ANALYSIS

The researcher in this study used simple percentages for analyzing data from the
questionnaire. Chi-square (x2j) method was employed to test the hypotheses
provided in chapter one.
The formula for calculating the Chi-square (x). X2 = (Fo - Fe)2
Fe
X2 = Chi-square Fo = Observed Frequency Fe = Expected Frequency
16

The expected Frequency (fe) is the sum of the responses divided by the number of
the categories Nwabuoke (1986). Therefore, in computing thefrequency table.
Fe = r_x
R = Row total
C = column total
Grand total
After the data analysis cures the interpretation, and the final decision taken based
on such results.

17

REFERENCES
Akijziiiloe.O. (2002)."Research and Statistics in Education and Socialsciences"
Method and Application.Jos, Nigeria: NUEL Centi-publisher and Academic
Press Ltd.
Aknezuilo(2005).Business Mathematics And Statistics.Aldine
place, London: L.PPublications ltd.
Cochran G. C.(1963).Sampling Technique.New York: John Willey
and sons.

18