Unemployment is a micro-economic problem that affects individual most differently or severe. Unemployment arises as a result of insufficient and unavailability of jobs to correspond with the growing population.
According to Lipsey (1963), unavailability of jobs causes economic waste and human suffering.
According to Fadayomi (1993), unemployment is as a result of the inability to develop and utilize the nation manpower effectively.
In Nigeria, available data from National Bareau of Statistics (2010) shows that the incidence of poverty is higher in the rural than the urban area, so also is the rate of unemployment, particularly in the late 1990s and 2000s. The incidence of poverty is higher in Nigeria among those who have little or no education than other categories in Nigeria (Okeju and Olanikpekun 2014).
For almost two decades (1995-2011), Nigeria unemployment rate averaged 13.33% with the average growth rate of 6.36% for the same period. Also, unemployment in Nigeria increased by 69 percent in 1985 from 6.1% to 19.7% in 2009 while in 2010 and 2011 it experiences an increase to 21.1% to 23.9% respectively.
Unemployment can lead to depression, low self-esteem and other mental issues especially if an individual truly wants a job but can’t be employed.
Tension can occur which can lead to stress and strain of the body while on economic ground, during unemployment, there is no income which leads to poverty.
Unemployment and poverty go side by side. The problem of unemployment gives rise to the problem of poverty.
Moreover, young people, after a long time of unemployment, find the wrong way to earn; they accept alcohol and drugs as a way to get rid of their unemployment stress.
Unemployment increases the high rate of crimes in the society, such as robbery, murder, kidnapping and Internet fraud since they do not have anything to do. It also causes health issues affecting mental or physical well-being of an individual.
CScholars have identified causes of unemployment in Nigeria as well as other developing countries as: Neglect of agricultural sectors, rural-urban migration, wrong impression about technical or vocational education or training, corruption and embezzlement, rapid population growth, Inflation, recession.
Most industries prefer skilled candidates for their companies also many employers prefer to employ experienced candidates than freshers.
Slow business expansion and advancement in technology also give rise to unemployment.
However, the Nigeria government, at various levels, has adopted policies at enhancing the performance of informal sector in order to reduce unemployment. As a result, different administrations, often in collaboration with the private sector have embarked on youth employment programs to address poverty and unemployment issues.
Nigeria has been exploring various approaches including microfinance. In December 2005, Central Bank of Nigeria introduced a microfinance policy framework to provide access to small enterprenuers and low income household to financial services.
DPH NEWS REWIND