Identifying the relationship between unemployment problems and macroeconomic decision, some researchers are of the view that the poor macroeconomic decisions and policy implementation in the country is as a result of it massive unemployment rate and problems, while others argued that apart from unemployment, there are other factors.
Looking at the previous researchers’ views, the research work intends to critically assess the unemployment problems and its effect on macroeconomic decision in Nigeria.
The findings and recommendations of this study will be of great contribution to academic works as it is a contribution to the body of knowledge on unemployment problems, its effect on macroeconomic decision, industrial sector and the economy at large, it would also studious research on areas not covered by this study.
This research will also be useful to the government in enhancing its regulatory and supervisory roles as well as formulation of policies to ensure that the industrial sector is well reformed to ensure rapid increase in investment that will encourage employment.
Background to the Study
Unemployment is a global trend that mostly occurs in developing countries of the world, which does not only affect them socially but also psychologically and even economically since the unemployed populace will not contribute to the gross domestic product (GDP). Unemployment is one of the developmental problems that every developing economy in the 21st century is grappling with. International statistics portray that industrial and service workers living in developing region account for about two-thirds of the unemployed (Patterson et al, 2006).When people are gainfully employed, they earn income. Hence, full employment is a means of distributing income and ensuring that as many people as possible contributes to and share in the national income. Unemployed persons do not earn income so they do not contribute to the national income and act as a burden on those employed or the society as a whole.
Unemployment is also seen in technical terms to mean excess capacity whereby the economy operates within its production possibility frontier. From the above, it is clear that the problem of unemployment is an issue of great concern to all rational governments across the globe for three reasons; unemployed resources are idle resources, employment is a source of national income and idle mind as they said is the devil’s workshop (Abdullahi, 2008).
Unemployed persons may sometime constitute themselves into a socio- economic nuisance: the economic implication on the society cannot be overemphasized. The problem of unemployment is still eating deep into fabrics of the Nigeria economy, thus, giving rise to a host of social and political crisis raging from armed robbery, destitution, economic crimes, political thuggery, poverty, health related problems, and recent bomb blasts in addition to host of other vices (NDE, 2006; Abdullahi, 2004 and NDE, 2007).
In Nigeria, accurate unemployment rate are difficult to obtain and generally, it is a militating factor to the economic growth of Nigeria since the unemployment violence and problems has limit the effective implementation of government macroeconomic decisions and developmental policies. The high rate of unemployment in Nigeria is one of the most critical problems bedevilling the country. Nigeria is a country that is endowed with various resource; both human and material. Failure in making good macroeconomic decisions and policy implementation and continuity on the part of those at the helm of affairs has led to under-utilization of these resources in order to yield maximum economic growth and development, thereby leading to unemployment.
Due to collapse of infrastructures such as; electricity, roads, securities, etc that is supposed to be taken care of by the government, small and medium scale business which provides employment opportunities for jobless people are fast getting extinct. The banking industry which is one of the highest employers of labour in recent times is faced with downsizing of its workforce, thereby increasing the number of unemployment. Textile industries, steel companies, NITEL and Nigerian Railways are comatose. Private firms, that provides employment opportunities for Nigeria are gradually shifting base to other West Africa countries leaving the problem of unemployment to escalate.
Few years ago, a Lagos based CEO of a manufacturing outfit stated that, if he had a choice of setting up a business in Nigeria or Ghana he would opt for Ghana. He attributed his choice to the high cost of doing business in Nigeria compared to Ghana , due to the deplorable state of infrastructures such as; electricity, roads, and insecurity in Nigeria. Most business and manufacturers do not make turnover in their business because they spend much money on powering their generating set which is alternate source of power. The cumulative effects of migration of companies in Nigeria to other (West) Africa countries such as; Ghana, Togo etc is massively leading to unemployment. The gender aspect of unemployment in Nigeria is also a source of concern as statistics has shown that the number of employed female is three times more than their male folks, thereby increasing crime mostly among the male youth in Nigeria. It is to this end that the researcher deems it fit to investigate the unemployment problems and its effect on macroeconomics decision in Nigeria.
Only logged in customers who have purchased this product may leave a review.