UNEMPLOYMENT IN NIGERIA ; AN EXTREME SITUATION

BY

MUDASSIR ALIYU YUNUSA

mudaysh@yahoo.co.uk

 

     Land, labour, capital are the most important factors combine together in the process of production of goods and services in every economy. It is left for the producer to make a consistent choice among the available production functions which can be attain through the technical and efficient combination of factor input to produce various level of output. In production the application of factor depend on the intensity of that factor and this is usually measured by capital/labour ratio (K/L). It is important to note that both the factors can be under employed or unemployed generally but the most sensitive one in every economy is the unemployment of labour which is considered as a threat to the overall socio-economic setup of the society.

     By definition, unemployment of labour is a situation where people are qualified to do the work, they also have willingness and ability to partake and to offer them for employment at a prevailing wage rate but they are unable to secure the job in any sector of the economy. It is also be seen as the under utilization of labour in an economy. However so many economic and social factors can cause unemployment. Economically low aggregate demand for goods and services, excessive wage rate, literacy level, information asymmetry, pattern of demand and techniques of production, government policy e.t.c. likewise socially the societal belief base on religion and culture can  lead to a prevalence of unemployment.

     Almost all the causes of unemployment mentioned above are in existence in Nigeria and this indicate that the country can not escape from the trend of unemployment, and it is well aware that the country is blessed with abundant wealth that can be utilized to minimize the prevailing rate of unemployment that hinder the development of the country and it is responsible for the economic and social privation that the citizens are seriously facing especially the poverty inclination of over 70% of the people in the country. It was recently that the statistical analysis was released by the federal government and they reaffirm the 2007 analysis on poverty that the poverty line stated by United Nation (UN) in 2007 that any body who spend one third (1/3) out of his total earnings in consumption and any body who live below one dollar ($1) per day is considered as poor. So with this, the World Bank analysis on Nigerian case revealed that 28.57% out of the total population of Nigeria are poor, this figure was accepted by the federal government through it’s minister of labour, but up to now there is no any measure that is put in place to control the situation but they are wrongly informing the public that all the problems that the country is currently facing is because of the effect of global financial crises. This is no doubt an incredible assumption by considering the situation of unemployment which was in existence for long and even before the prevalence of global financial crises.

     The problem of unemployment in Nigeria has touches almost all the economic sectors like agricultural and industrial sector, which are considered as the nucleus economic sector in any country and the development of any country mostly depend on these two inter related sectors. Industrial sector faces serious predicaments that led to close down of many manufacturing companies, this is as a result of devastating problem of power supply in the country, within one year period about 100 textile companies were forced to close down and their workers was also thrown into the labour market and increase the rate of unemployment in the country. For those companies that are currently managing and running by the use of generator power they are not many and there is under utilization of labour in such companies which is also associated directly with unemployment.

     The large scale companies in Nigeria are in the verge of collapsing because of the power failure, while the small scale businesses that extract considerable number of labour  and distribute income in the economy like tailoring, metal work, wood work, small manufacturing firms e.t.c are also forced to close down because most of them can not afford to use private generators for smooth running of their services and as such this will definitely increase the number of people in the labour market, and this is another reason why the rate of urbanization is increasing as majority of working population are engaging themselves in some small businesses that do not have any bearing with electricity like achaba, hawking shoe servicing and other engagement that is mainly found in the cities.

     As a result of the high rate of unemployment in Nigeria the dignity of labour is falling to the extent that workers are not receiving a fair wages for their services and the right to fight for  better pay and better condition of service is deprived because of the fear that if they do so their employers can do away with them and employ others that are in long queue waiting for employment in labour market, and with this there is tendency for labour abuse that is against the concept and principle of good management of labour.

    Therefore if government is sincere in its actions for achieving stated macro economic objectives they should put effort in reducing the rate of unemployment in the country. This can be done through immediate revamping of electricity per excellent in the country, this will have multiplier effect by touching almost all the sector of the economy ranging from agriculture, industry, transportation hence the overall increase in investment, productivity, income and employment  of each sector sector in the country.

                MUDASSIR is a corp member serving with NTA Maiduguri Borno State.