The unemployment rate in Nigeria – In this post, you will see the current rate of unemployment in Nigeria. You will also find the economic consequences of high unemployment rate in the country.
The unemployment rate in Nigeria is quite alarming, and the rate is increasing by the day. How do I know this? It is simply calculated as a percentage when you divide the number of unemployed persons by all the persons, who are currently in the labor market.
Of course, it is true that, in the time of recession, the economy, in most cases, experienced a relatively high rate of unemployment in the country. However, unemployment is one key issue affecting the economy of Nigeria, and the Nigerian society.
Read Also: 11 Effects Of Unemployment In Nigeria
Unemployment Rate in Nigeria 2019
Nigeria’s unemployment rate stood at 23.1 percent of the work force in the third quarter, up from 18.1 percent a year earlier, the head of the statistics office Yemi Kale said on his official Twitter feed.
To be frank, the rate of unemployment in the country has actually increased as I said earlier over last few years. That out of the way, it is true that, this problem has been broadly debated.
The unemployment normally happened when citizens who have reach the age of working, or who are graduates could not find a good and suitable paid work to engage themselves, at least, for a tangible period of time.
However, going by the reports of the Bureau of Statistics,vabout 40 percent of Nigerian population who are said to fall within the employable age are not employed.
Economic Consequences Of High Unemployment Rate in Nigeria:
One can now imagine the economic, as well as, the social costs of unemployment in Nigeria, which if you look at it critically, you will discover that such costs include, personal costs, that is, lost of income, and costs to government, that is, lost of tax revenue, as well as, costs to society at large, which have to do with social problems, and also lost in GDP. Having said that, let us look at some of these economic consequences of unemployment in the country.
1. Lossing Of Earnings To The Unemployed
Unemployment, as we all know, has been considered as one biggest cause of poverty in the Nigerian society. When the period by which the unemployment in the country is extended, the possibility would be that, it will push households and everyone of their member into untold debt, whereby increasing the rates of poverty relatively.
2. Potential Homelessness In The Country
The economic consequence of unemployment in Nigeria is that, it has helped in causing potential homelessness for Nigerian citizens.
For instance, loss of income has actually leave Nigerian citizens without enough income to carter for their housing needs and costs. Hence, increase in unemployment rate, usually help in exacerbating the rates of homelessness in the country.
3. Harms Future Prospects Of The Country
This is another economic consequence of unemployment in the country, and the simply arithmetic is that most Nigerian citizens, who are unemployed today may likely find it quite difficult to secure a suitabe work in the future, and this is what is called, the hysteresis effect.
Read Also: 10 Ways to Eradicate Unemployment in Nigeria
4. Stress And Health Problems
Stress and health problems especially, suffered from those who are not employed, remained one of the economic consequences of unemployment, and when there is unemployment, the people suffer.
If you conduct studies on the unemployed citizens, you will observe signs of depression, and mental anxiety, as well as, other health problems, these problems mostly are noticeably higher. You can imagine the ffects of unemployment on health of the citizens.
5. Lost Of Human Capital In The Country
Lost of human capital in Nigeria is another economic consequence of unemployment in the country. For instance, as the Nigerian people are out of job, the citizens are missing out on what is considered in the labour market as, ‘on the job training.’
On the job training is an important component, when it comes to human capital development and labour skills. The high unemployment rate has helped in reducing the labour productivity in the country.
Supposed an individual is out of job for at least two years, he is likely to miss out of the current working practices and working trends recognized globally.
You see unemployment can even affects the confidence of the unemployed citizens, which as a result, can also make them to become less employable in the days ahead.
6. Increases Federal And State Government Borrowing
Another economic consequence of unemployment in Nigeria is that, it has helped in increasing the government borrowing, which is quite unfortunate.
High rate of unemployment has actually helped in making the tax revenue of the government to fall drastically, and this is occasioned by the fact that, there are only few citizens, who are actualy working are those paying the income tax.
These few citizens are also spending less income, and at the end, what the government is receiving is low value added tax VAT. Another consequence is that, the government is likely to spend much more on unemployment and other related benefits.
The issue is that, the government may not necessary pay unemployment benefit just like that, what the government does is to make sure that, a family whose members are unemployed is receiving housing benefit from the government, as well as, income support.
7. Lower GDP For The Country’s Economy
Another economic consequence of unemployment in Nigeria is that, it helps in lowering the country’s GDP. When there is high rate of unemployment, the indication is that, the economy will be operating quite below full capacity thus, making the country’s economy inefficient.
This however, has led to low output as well as low incomes. As the unemployed are not able to buy so many things as they want, hence has contributed to lower spending as well as lower output.
8. Increase in social problems In The Country
When there is high unemployment, the resultant effect will be that, it will contribute to more crime and more vandalism.
It can as well, bring about the effect of alienation as well as, difficulties in the integrating process of young unemployed citizens into the society.
9. Causes Political Instability
The high rate of unemployment in the country can actually lead to social crisis and social unrest.
The rate of unemployment in the country has actually increased as I said earlier over last few years. The unemployment normally happened when citizens who have reach the age of working, or who are graduates could not find a good and suitable paid work to engage themselves, at least, for a tangible period of time.
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