Unemployment | Definition, Types, Causes And How To Reduce It

Unemployment | Definition, Types, Causes And How To Reduce It
Unemployment is a situation in which able-bodied and healthy people who are looking for a job cannot find a job.
Unemployment is a major social problem that is currently facing Nigeria and other African countries. It has lead to a lot of things like high rate of cyber crimes, robbery, kidnapping, cultism, gambling and even suicide.
In this article, we'll be listing out:
• Definition of unemployment
• Types of unemployment
• Causes of unemployment
• How to reduce unemployment in Nigeria

Definition Of Unemployment

According to Oxford Advanced Learners' Dictionary, Unemployment is 'a state of not being employed. It is mostly used in economics, of the condition of various social classes when temporarily thrown out of employment.
Unemployment is a state or condition whereby those who wish or are willing to work are unable to find suitable jobs. It is different from someone who voluntarily refrains self from working or a retiree. 

Types of Unemployment

There are four types of unemployment and they include frictional unemployment, seasonal unemployment, structural unemployment and cyclical unemployment.

• Frictional unemployment

Frictional unemployment is the waiting  period between when a worker is transitioning from one job to another or searching for a new job. It can also be called search unemployment and can be voluntary based on the circumstances of the unemployed individual.

• Seasonal unemployment

This refers to the periods firms or companies have few jobs to offer. It can be as a result of the slow down of the economy.

• Structural unemployment

This occurs when a labour market is unable to provide enough jobs for everyone who wants one because there is a mismatch between the skills of the unemployed workers and the skills needed for the available jobs.

• Cyclical unemployment

This refers to when there is not enough aggregate demand in the economy to provide jobs for every individual willing to work.

Causes Of Unemployment

Unemployment can be caused by certain factors ranging from the academic system, to the political system and more.
Below are some causes of unemployment you should know about:

• Overpopulation

Nigeria is the most populated black nation in the world with a population of 190.9 million (2017). If you visit some developed cities like Kano and Lagos, you'll be shocked at how congested they are. This is not so good because many villages have vacant job opportunities but no employees to pick them up.

• Recession

Recession is a countries' economy will lead to companies sacking some of their employees. This is also another major cause of unemployment that is common in Nigeria.

• Scarcity of foreign exchange

Scarcity of foreign exchange will lead to low productivity in companies which can in turn, lead to the companies sacking some of their employees.

• Nonchalant attitude towards agriculture

Nigerian youths display seriousness attitudes towards agriculture whereas so many amazing opportunities lie in them. In fact, we've outlined 10+ Top Agribusinesses That Can Make You A Millionaire and I suggest you check them out.

• Outdated academic curriculum

Imagine someone going to school to learn how to use a typewriter in 2019. It's funny right, but some courses can actually be compared to that. The ministry of education should work on the curriculum annually to enable students remain up to date.

How To Solve Unemployment Problem In Nigeria

After listing out the types and causes of unemployment, the next thing in line and probably the most important should be how to solve the unemployment issue.
As an individual, you have a role to play in making Nigeria a better place by combating this issue. What could be that role? Stay tuned...

• Entrepreneurship

This is the process of designing, launching and running a new business, which is often initially a small business. As an entrepreneur, instead of relying on the government or private organizations, you will become an employer of labour.
Are you a budding entrepreneur, why not check out this post on 10 Factors Affecting Entrepreneurship Development In Nigeria? It is an eye-opening article that will help you tackle some common entrepreneurial issues that are being faced in Nigeria.

• Reformation of the Agric Sector

The agricultural sector is the second largest employer of labor in Nigeria. The rice and beans you eat, that your best fruit, your cotton wears, your wooden tables and more are all products of agriculture.
If more individuals start displaying interest in the agricultural sector, in no distant time the rat of unemployment in Nigeria will become greatly reduced.

• Fiscal Policy of Government

Fiscal policy refers to the use of government revenue collection and expenditure to monitor and influence a nation's economy.
It shows how the government collects and spends the country's revenues. The government collects revenues such as tax, tariffs and custom duties and spends them in the payment of salaries and repairs of amenities like roads. This leads to the growth of the economy which in turn, creates jobs and reduces unemployment.

• The Nigerian Monetary Policy

This refers to the supply of money, credit in the economy, interest rates and rules guiding the financial sectors as issues by the CBN on behalf of the government.
Annually, the Central Bank of Nigeria makes rules which help in the easy operation of the financial sector. It manages the supply of money by:
  • lending more
  • lending less
  • the lending rates going down
  • the lending rates going up
Capital is a primary need for the success of every business and borrowing from financial institutions is one way of getting it. The monetary policy makes planning easy for companies that want to borrow money as it helps them know when the rats are low.

• Government Intervention in Micro Lending

Money can be disbursed by the government to micro-finance banks to enable them lend to market women, artisans and petty traders. The micro-finance banks can ask the business owners to form corporative societies which will enable them get the loans and also act as guarantors for members to ensures the loans are repaid.

• Getting Professional Education

Getting quality education will expose an individual to better ways of  providing for his/her needs. Studying of professional courses in the high institution will also go a long way into producing self-reliant students.

• Changing of the University Curriculum

The ministry of education should regularly work on the curriculum and subjects that would train undergraduates with certain skills should be introduced.
Courses like cybernetics, computer animation, robotics and others if introduced will also go a long way into producing the best students.

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