Economic Effect Of Unemployment In The Nigeria Economy

Economic Effect Of Unemployment In The Nigeria Economy: (A Study Of Igbo Etiti North)

Economic Effect Of Unemployment In The Nigeria Economy: (A Study Of Igbo Etiti North)

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.

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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.


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.


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.

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


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.

 Establishment of industries in the rural areas.

 Provision of recreational facilities.

 Improvement of our Agricultural system

 Establishment 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.


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


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.


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.


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.

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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.


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.


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.


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.



Today over 30 million Nigerian are said to be unemployment, despite the effort made by government through National directorate of employment (NDE) and National economic reconstruction fund (NERFUND).

Taking a view on the report of the Federal office of statistics the composite unemployment growth rate of the Country in 1997 was 13.2 percent with urban unemployment growing at six percent. The public sector report on unemployment was worse in the last four years following the blow through the ministries with about 30.00 pencil let down for retrenchment in order to enable the federal government pay the minimum wages. This is added to the thousand through into the labour market business of corporate reengineering process going in blue- chip companies in the private sector.

There have been several attempts to solve the problem through institution like national directorate of employment (NDE), Better life for women and others, which have failed.

Last four years the federal government in an attempt to create more employment opportunities adopt real sector policies aimed at stimulating output growth, alleviating poverty and reducing unemployment through private sector participation in the economy. But the result is fair away from the intended objectives. The indication is the problem of unemployment is in increase.

The question is how the national got into present guarder, why the effort of successive administration how failed to tackle the unemployment and how should the solution be sought and engaged in the attention of experts in human capital development.

Tracing how the nation got into unemployment trap DOTUN SULAIMAN Country managing partner Anderson Consulting, said that the problems of employment persist because the economy has no growth with population (THIS DAY 1999. 19).

“It is a Case of population our ripping economic growth” said by Maltus in his theory of population, he also said that the population is growth at geometric progression while good production is growing at arithmetic progression, Rev Maltus strongly believes that there will be a time the population of a Country will increase without corresponding increase in the food production of the Country.

Although, Mr. Karods Sunday, the registrar institute of personnel management of Nigeria shares Suleiman view and traced the problem (unemployment) to lack of synchronization between what the nation education system produce and what the industries need. He stated that there is a fall in the standard of education of the economy (Nigeria) as a result or given rise to the problem of unemployment.

In addition another stated that due to the falling standard of education and lack of responsiveness of school curricular to change Labour market force, there is mismatch between the production of tertiary institution and the demand of the Markets, Adding that the Craze for Credential has failed the demand for university education particularly in non science discipline.

However, arguments were made by different people base on the origin of unemployment to Nigeria economy.

Karode (1999 –19) Admitted that Nigeria has an abidance of unemployment, he argued that it would be wrong to say that Nigeria problem of unemployment is a result of surplus of human resources. He said that human resources. He further stated that the problem of unemployment is from the nations ability to hardness in resources. According to him, Nigeria development plans were set towards putting the cat before the horse.

Consequently, we had seen not to be getting the right kind of personnel.

Karode (1999: 19) stated again that until the right Nigeria adopt a Cohesine strategic plan with industrial development against the back ground of the nations resources no body can really say whether we have surplus or optimum functional relationship or not.

But at a when these appeared to be a rise in the number of potential capable hand that can manage the industries Nigeria can indigenize the management of companies, but there was no systematic development programme that supports the move.


We have three schools of thought within the problem of unemployment and they include; the socialist school of thought led rounding socialist called hard Max. He was of the opinion that it is only government that can solve the problem of unemployment.

He said that both the voluntary and involuntary type of unemployment are equal. He further stated that those problems are called the army of unemployment. He identified two methods of recruiting them, namely the direct and indirect methods, after all said and done he emphatically and solidly believed that it is the government alone that can eradicate the problem. (Unemployment).

Again, another eminent school of though led by the great Adam Smith antagonized the believe of the socialist. He postulated that if unemployment occurs, the focus of demand and supply will interact in the market.

The third school of thought called the mixed economist led by lord John Keynes, the man who found a solution to the great depression of the early 20’s He reconciled the view of the above two schools of thought (socialist and classical) he said that there is no way an individual or government alone can solve the problem of unemployment in an economy.

He therefore calls for joint effort on the idea of both the individuals and the government in solving the problem (unemployment)


Schiller (1974:39 & 41) said that unemployment leads to poverty. When the relationship is viewed over time, where as unemployment will diminish families economic income if it last for long period.

He further stated that unemployment constitute a direct and increasing serious threats to a families economic welfare, we have not yet completely described the dimension of that threat the income of the family or people suffering from unemployment will be loss. He also sated that when unemployment, the job seekers are to become increasingly frustrated in their effort to secure employment.

Jobs as scarce and available to only a selected few others are faced with one employment rejection after another job seekers are likely to give up the search.

He stated also that unemployment in an area has a significant effect on the size of the non-participating population accordingly and may discouraged workers could be courted among the equalities of unemployment.

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The type and amount of work people undertake when jobs as scarce is another indirect hardship resulting from unemployment. As we noted that the family of unemployment will be low facing a low labour market. Many will have to accept what her employment and wages will have to afford.

The indirect and direct consequence of unemployment growth the burden of a loose labour market on the economic status of the poor to become apparent.

According to sharp, Register, and liftwhch (1988 – 310) unemployment may affect not only current production of goods and services but also futures production. During period of unemployment machines as well as workers are idle. Capital goods plant and equipment become obsolete and are not replaced. The productivity of labour and over all ability of the economy to produce in the future is reduced during periods of unemployment.

More also unemployment has some social effect unemployment threat the stability of the family as an economic and social unit without income or with loss of income the head of family relationship suffer as a consequence.

Economic and social dependency and important family tires may be jeopardized and may eventually be several by prolonged unemployment.

Human – relationship outside the family are also seriously affected by unemployment. An unemployment person looses self-respect and influence among the employed and may be rejected by working companies and looses pride and confidence. In the end the unemployment may become spiritually and socially prepared for unemployment, it tends to strike families. Least capable of with standing either its economic or its social effects. Also the incidence of unemployment like family instability and crime is high among how income group.

The social and economic effects of unemployment extend beyond the period in which it occurs. During a period of unemployment consumption and savings received, debts are incurred and for many unemployed people home and auto loan may be defaulted.

Afterwards, when work is available and income is earned debts must be paid and savings replenished it may take a long time before the living standard that prevailed and even longer before self esteem is restored.

HANNSON (1977: 542) stated that the regularity of the trade cycle has already been noted, periods of depression were characterized by low industrials production and unemployment of resources, both human and materials. The national income was low partly because of unemployment and partly because the average income of those who succeeded in avoiding unemployment also was low. In Agriculture, output often fall only a little, but prices and farmers income fall but not to same extent as in Agriculture and the depression. This manifested itself in a sever reduction in output accompanied by a great increase in unemployment. Some if those engaged in manufacture who remained at work found that price falls more than their wages, so that their real wages actually increased.

Production sometimes for example come to a stand with in a capital good industry the act looks often appearing so blank that businessmen were not prepared to renew or extend their capital equipment just as the capital producing industries were first to feel the onset of a depression, so they were the first to benefit from recovery.

As production expands and unemployment falls wholesales prices began to rise profit margins widened and recover was father stimulated. The upswing of the cycle might be set in motion by increased demand due to an expanding population of new lines of investments. Recovery might be encouraged by low rate of interest through this generally ha little effect at the very bottom of a depression for a expansion of blank credit was characteristics of the up giving of the school just as a contradiction of credit was a feature of the down giving. The stock exchange replaced the attitude of investors towards future business prospects and the optimistic of pessimistic feeding engendered by movement to share prices tend to exaggerate these trends. Detail price general rose slowly unit the later stage of a boom, but full employment was reached with the unsoundedness of the position was realized the boom would end in cash and return to depression could be precipitous prices would then fall, profit margin would be reduced or wiped out and unemployment would again become wide spread through out the industry.

The nineteenth century trade cycle was not restricted to Great Britain. It was also experienced in varying digress by other industrial countries and in some what different way by those mainly dependent on primary production with the development an expansion of international trade countries becomes, more dependent on one another so that both boom and depression spread from one country to others.

Action taken in a country suffering from a depression was often handful to the economics of others and this caused the depression spread more widely.


There are several solutions to unemployment which has been non an on crease, among which are; proper attitude to work expervision of the Agriculture sector, reorganizing the education system encouraging labour mobility and making loans available.


Most people especially the government workers don’t normally like working hard they always believe the slongan. After all government work is not my fathers own, these idea or believe at the back of their minds therefore makes them to handle the work with all amount of carelessness. In a company or establishment were we have this type of worker, there use to be high rate labour turn over. The management in its bid to stop this type of behaviour towards with restoring to frequent fringe of any workers who attempt to bread this type of obnoxious meaning and human style of worker in the work pace. Common sense therefore will even indicate to us that where the number of those employed are reduced and unemployed is increased in order to obtain from advocating for proper attribute to work, people should regard the work from which they earn a living very serious by being punctual so as to avoid unnecessary embarrassment and lay off from their employers.


If there is availability of loan to the investors who have little or no many but laid that business acumen, they will invest thereby creating opportunities for our youths, school leaves that are working the whole street of the town in search for financial situation. High rate of interest should reduce on the loan given to them. The repayment of the loan should give a loan period of time. Freedom of movement should be given to these investors so as evenly distribute theory employment opportunities to all the workers and concern of the society.


The movement of people will obviously solve the unemployment problem. A great and well-known development economist, Author laws in his theories was worked about illness of human being.

He talked about illness of human being. He took certain assumptions which include. The identification of two types of wage and these wages applies to two sectors of the society.

a) The Traditional sectors

b) The modern sectors.

The modern wages is greater than the tradition wages, because of this facts many people tend to work in the modern sector, this people who fuse the urban cities control where this modern sector will find out that capital instrument will sell then output get money capital and welcome those are not employed initially, the process continues till a stage when unemployment will be totally phased out,

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To combat any unemployment, the education system should completely be reorganized in such a way that employment is guaranteed on completion of school. This re-organization can be realized through proper and adequate training coupled with the involvement of well-experienced and qualified personnel’s.

The teacher go a long way in shaping ones life either by giving the student the real stuff as would be expected by his employers or chose a very realize course of study.


Industrialization that will geared towards solving the problem of unemployment should be supported encouraged and carried on its full sewing. This can be done effectively and efficiently through the building of industries that will be making use of local materials.

This will displace the problem of importation of foreign raw materials and expatriated which consumed million of Naira that would have been used for other reproductive purpose, Good example are the shoes making industries in Aba that makes use the local hide and skin as their raw materials they employ hundred of the unemployment with the help of local acquisition of raw material. The money generated and saved will be used to re- invest and pay workers.


Double attention should be given to the agriculture sector. This should be so because agriculture is the, aim stay and infact the bedrock of the nation. Almost 75% people of Nigeria living in rural areas without any modern infrastructure like good roads pipe born water, Electricity etc. thereby making them perpetual local and crude farmers, government should in order to curtail unemployment build good roads, good communication network pipe born water and electricity so that investors can go inside the rural are to invest financial sides loan and awareness should be given to farmers by way of making tractors, plough, harvester, etc. Available to them. This will invariably boast their ego and production capability thereby attracting more into the profession and in the same way renouncing the amount of unemployment government not only encouraging farmers as a means or step to eradicate unemployment can do the same thing by building agriculture estates like cassava, banana, cocoa plantation and also breading of poultry, piggery goat etc. This not only generate revenue to the government but reduces high rate of unemployed because it is human being not animals that are going to work in those agricultural establishments, This is to say therefore that of attention should be given to the expansion of Agricultural sector by way of making loans available to farmer the problem of unemployment will definitely to be a thing of the past in the nearest future.


As we earlier said in chapter one of this project work that unemployment means involuntary idleness. It further describes a person as unemployed when despite his ability and willingness to do work is jobless. By this definition therefore all mentally and physically incorporated person are excluded, in chapter two of this researcher we talk about the origin of the subject area, school of thought within the subject area that unemployment problem. The school of though relevant to this problem study. The different methods of studying the problems that is the situation to the problem of unemployment. Unemployment which has seen on the problem of increase have several solution among them are proper attitude to work, expansion of agricultural sector, re- organizing the education – system, encouraging labour mobility and making loans available with this can be a meaningful research work.


Having established the fact that unemployment exist in Igbo-etiti north, It becomes pertinent at this point to recommend some of the measured which the researcher feel that if proper implemented would help immensely in solving the problem of unemployment.

A) Proper education and development policies one of the primary objectives of development policy should be aimed at reducing of unemployment to the barest minimum level within the next few years our education system should be over hulled to place less emphasis or theoretical education and more attention to still oriented. This is to reflect graduate after graduation.

B) More Industries should be established to absorb the over increasing yearly turn out of graduates. At present the private sector is the principal employment labour. Regrettably, however in directed and uncoordinated private initiative can not solve the problem of unemployment in Enugu or Igbo-etiti north L.G.A it is desirable to create a frame work in which the government plays dominant role and actively promotes private enterprise establish new ones with a centrally direct mobilization of resources towards the definite objectives of solving the unemployment problem.

C) It is the contention of the researchers of this study that present the number of higher institution in the state is adequate enough to meet educational need of the people of the state.

This is without any prejudice to quantitative education but we prefer qualitative education to the formal to create room for proper finding quality product into labour market to avert a possible over saturation of the competitive labour market with half basked professional mediocrities roaming the start in search of jobs.

D) Government should often more incentives to investors as an encouragement to invest to the state. These include making land available to the investors at moderately cheap rates and providing them with infrastructure facilities this will increase the amount of job opening in the state. Thus employing more government should seek direct ownership and equity and participation in production.

E) Students should guide in choosing their discipline through career counseling. This counseling should be aimed at advising the student to low the lines in which they have great potentials and prove integrity if this is established it will offer the student what the opportunity of studying what they are capable of and also present suitable employee to the employers of labour.


From the beginning of this project it has been observed that this social disease called unemployment is a very bad and slow killing ailment which if appropriate care is not taking it will put the economy in a disable situation.

Chapter one of this work gave us an insight of background an types of unemployment which can be suffered by any person in any society. Since this is a universal problem the writers of this work has settle down on a particular geotropically location Igbo etiti north in Enugu state of the Federation.

But all things being equal, unemployment no matter the dominion that sharpen the model and styles of discussion, and occurrence is irrevocable and obtained in any society being it mixed, socialist and capitalist economy. Based on the analytical process and research recommendation we belief that its project or research have gone a long way seeing that the problem of unemployment to the background in all ramification.

Economic Effect Of Unemployment In The Nigeria Economy: (A Study Of Igbo Etiti North)

To place an order for the Complete Project Material, pay N5,000 to

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