Unemployment is used to describe a situation whereby the population of people ready to work is unable to get something doing. The International Labor Organization (ILO) defines the unemployed as numbers of the economically active population who are without work but available for and seeking work, including people who have lost jobs and those who have voluntarily left work.
Unemployment is a great problem to any economy like Nigeria. Its impact and effects cannot be overemphasized.
As a result of this, the economy is faced with the following problems.
1. High rate of crimes
Owing to the fact that jobs are not available, some citizens take to violence and dubious ways to make ends meet. They involve in things like robbery, fraud, prostitution, rituals, pocket picking to make money.
When there is no source of income, poverty sets in. citizens are unable to feed and clothe themselves. Some people engage in disguised employment which is a situation where you earn less than you deserve or qualify for. The quality of life is reduced because of unemployment.
Unemployment can cause depression and frustration on the populace. Most people end up committing suicide because of the trauma of not been able to make ends meet. Some take to hard drugs and alcohol thereby risking their health.
4. Negative effect on the economy
The absence of employment can affect the economy negatively. When most people are not working and the few working can hardly make ends meet, recession sets in. This reduces economic growth.
6. Inequality of income
This means a situation where money is concentrated in the hands of few people (the rich) while the others which is a greater proportion are wallowing in poverty and shame. The income is concentrated in the hands of the rich.
7. Increase in death rate
As a result of unemployment, there is increase in death rate. People die either because they are malnourished or because they cannot afford hospital bills.
8. Increase in birth rate:
When people are unemployment, there is the increase in birth rate because they spend so much time at home and as such procreation in the result.
This is another problem of unemployment in Nigeria. When people are ready to work and the work is not available, they mingle with bad people and vices and start fighting the government. In Nigeria, the south were granted amnesty and given jobs both vocation. This helped to check the rate of insurgency and terrorism
10. Increase in maternal death
This is inevitable. With no jobs, parents are unable to provide for the pregnant wives and even the new born when they fall ill. Mothers and nannies lack the essential need of life like good food.
11. Poor education
Uunemployment affects the populace in the area of education. Parents are unable to afford books and pay school fees. As a result, children roam about the street for survival a d they end up causing nuisances to the society at large.
Possible solutions to the problems of employment in Nigeria
The following are some of the possible solutions to the employment problem
- Creation of more job opportunities to reduce the rate of unemployment. When people
Are offered more opportunities to work and earn a living, the issue of crimes and environmental hazards will be reduced.
- Government should encourage foreign investor who will give rooms to employ. This will also help in reducing unemployment in the sense that money/capital will be readily made available.
- Control of the population size by encouraging citizens to properly space their children and also avoiding having many children. The government should educate those especially in the rural areas birth control methods to reduce the birth rate.
- Government should develop the agricultural sector. If this is done, revenue will be generated for the government and employment will be available to some citizens.
- Government should provide loans and grants to those that need capital to work. Most citizens who want to work especially in the agricultural setting are lack the capital to do so but if they are able to access this facilities from the government, they will utilize it.
- Government should invest greatly in education so that the students can be taught self-reliance too
- Reduction in tax rate: if the tax rates are reduced for businesses, then they will be able to produce more and then employ.
- Central Bank and Nigeria Monetary Policy: Monetary policy refers to money supply, interest rates, credit in the economy, and rules guiding the financial sector issued by the Central Bank of Nigeria (CBN) on behalf of the government.
Read Also: 10 Ways to Reduce Unemployment in Nigeria
Every year CBN makes rules for easy operation of the financial sector. It manages money supply by:
- the lending rates going up
- the lending rates going down
- lending more
- lending less
Lending rate affects individuals who borrow from banks to pay for their personal needs and firms who borrow from banks to grow their businesses.
Capital is crucial for any business to survive so companies must borrow at sensible interest rates to make profit.
Monetary policy makes it easy for companies to plan the time to borrow from their banks and do so when interest rates are low.
Getting a loan enlarges their business, which increases output and profit, and helps these companies create more jobs.
- Training Entrepreneurs; Government can start a program to train entrepreneurs instead of allowing unemployed graduates to search for jobs that are not there.
For example, the National Youths Service Corp program (NYSC) could become a one-year entrepreneurial training program for all graduates who will pass out to create jobs.
In addition, you can set up an internet business by becoming a blogger, website designer, and copywriter, to reduce unemployment in Nigeria.
- Governments at all levels may also go into partnership with private individuals to establish industries, with the private partner providing the driving force. Local and state governments should similarly collaborate with meaningful private farmers to modernize agriculture, which has a large capacity to reduce joblessness.
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