STATISTICAL ANALYSIS OF UNEMPLOYMENT RATE AMONG AGE GROUPS AND GEOGRAPHICAL LOCATIONS IN NIGERIA

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CHAPTER ONE

1.0 INTRODUCTION

Unemployment could be defined as a condition whereby one that is willingly and capable of working actively is seeking for job but is unable to secure any. The unemployment rate is expressed as the percentage of the total number of persons’ available for employment at any time.

Unemployment is a problem that each society faces. The society that faces this problem must find a way to beat it. It is important to note that before a person is considered unemployed, the person must be an active member of the labour force. While a person is completely unemployed some are underemployed. Underemployment describes a situation whereby a person is able to secure a job only for a shorter period of time e.g. par time workers, seasonal workers, day or casual workers etc.

Unemployment is defined by the international labour organization as when people are without jobs and they have actively looked for jobs within the past four (4) weeks and also unemployment rate can be defined as the proportion of labour force who were available for work but did not work in the week preceding the survey periods for at least 39 hours.

Statistics on unemployment are collected and analyzed by government labour force in most places but here in Imo state the work are being done by the national integrated survey of household (NISH) which covers all the 36 states of the federation and the federal capital  territory (FCT) Abuja which is the emphasis of my project work, which trends to fight against unemployment and also to evaluate the rate of unemployment based on available data from national bureau of statistics (NBS) Owerri Imo state.

1.1 BACKGROUND OF THE STUDY

Further in discussing the term unemployment it is important and necessary to note and discuss about the various types of unemployment, negative effects of unemployment, possible ways and suggestion for solving the problems of unemployment in Nigeria.

TYPES OF UNEMPLOYMENT

STRUCTURAL UNEMPLOYMENT:

This occurs when there is a change in structure of an industry or the economic activities of the country. As an economy develops over time, the type of industries may as well change because there’s a change in people taste or the products and services Is no longer in demand.

FRICTIONAL UNEMPLOYMENT

This type of unemployment is caused by industrial friction such as immobility of labour, ignorance of job opportunities, shortage of raw materials and brake down of machinery etc.

SEASONAL UNEMPLOYMENT

This is due to seasonal variation in the activities of particular industries caused by climatic change; change in fashion or by the inherent nature of such industries. For example the ice factories are closed down in winter throwing the workers out of their jobs because there is no demand for ice during winter and also the sugar industries is seasonal because the crushing of sugar cane is done only in a particular season which  is  the raining season.

CYCLICAL UNEMPLOYMENT

This type of unemployment is due to the operation of the business cycle. This arises at a time when the aggregate effective demand of the community becomes deficient in relation to the productivity capacity of the country. For example when the aggregate demand fall below the full employment level, it is not possible to purchase the full employment level of output.

1.2    STATEMENT OF THE PROBLEM

From the annual abstract of general household survey report 2007 edition, the rate of unemployment among age groups and geographical locations have increased greatly in Nigeria over years.

Consequently, the researcher now wants to find out the causes of this high rate of unemployment in Nigeria.

  1. OBJECTIVE OF THE STUDY

Unemployment is like a disease affecting every country and it exist all over the world not only in Nigeria and the objective of this are as follows:

  1. To evaluate unemployment rate among geographical locations and the age groups
  2. To determine the significant difference of unemployment among age groups and geographical locations.
  3. To know if unemployment is independent on age groups and geographical locations.
  4. To proffer solution for remedy in order to avoid elevation behaviour, high crime rate.

1.4   RESEARCH QUESTIONS

  1. Is there any significant difference in unemployment among age groups and geographical location?
  2. Is unemployment independent on age group?
  3. Is unemployment independent on geographical locations?

1.5 STATEMENT OF HYPOTHESIS

HYPOTHESIS I

HO: Unemployment Is Independent on Age Groups

HI: Unemployment Is Not Independent on Age Groups

HYPOTHESIS II

Ho: Unemployment is independent on geographical locations

H1: Unemployment is not independent on geographical location.

HYPOTHESIS III

Ho: UI = U2 = U3 = U4= U5

i.e. the mean age group of unemployment is the same for each group.

H1: Not all mean age group of unemployment are equal.

i.e U1 = 0

HYPOTHESIS IV

Ho: U1 = U2 = U3

i.e. the mean of unemployment among geographical locations is the same for each location.

H1: Not all mean of unemployment among geographical locations are equal.

i.e U1 = 0

1.6   SCOPE OF THE STUDY

The scope of the study covers a period of 10 years (1998-2007) in Nigeria.

1.7   SIGNIFICANT OF THE STUDY

  1. The study will proffer solution to reduce high rate of unemployment in Nigeria
  2. This research work will also serve as a basic solution for further research on this topic
  3. It will help the schools and government in policy making as it affects unemployment.
  4. This study will serve as a reference point to other people.

1.8  LIMITATION OF THE STUDY

       The data was limited to only age groups and geographical locations in Nigeria and it was given in percentage of the total population to help generalize an accurate result and better conclusion.

1.9 DEFINITION OF TERMS

UNEMPLOYMENT: The number of people without jobs

UNDEREMPLOYMENT: A situation whereby applicants are given jobs not based on their current qualification but on low qualification only for a short period of time.

DEVELOPMENT: A situation where a county or state has attained the normal standard in the growth of the county or state

UNDERDEVELOPMENT: A situation whereby a country or state has not attained the normal standard in development.

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