Table of Contents
Cover page i
Title page ii
Approval page v
Table of contents viii
1.1 Background to the study 1
1.2 Statement of the study 9
1.3 Research Questions 12
1.4 Purpose of the study 12
1.5 Significance of the study 13
1.6 Scope of the study 13
1.7 Limitations of the study 13
1.8 Definition of Terms 14
1.9 Organization of the study 16
LITERATURE REVIEW AND THEORETICAL FRAMEWORK
2.1 Conceptual Review 18
2.2 Discussion of related Concepts 18
2.1.2 Full Employment 25
2.1.3 The Keynesian view 25
2.1.4 Types of unemployment 27
2.1.5 Yardstick for measuring unemployment 28
2.2 Theoretical Framework 30
2.2.1 The system theory 31
2.2.2 The Applicability of the system’s theory to the study 31
2.2.3 Objectives of the National Directorate of employment 32
2.2.4 Target Beneficiaries 33
2.2.5 Small scale enterprises and Graduate Employment
2.2.6 Problems faced by the National Directorate
of employment Kaduna state. 35
3.1 Research Design 38
3.2 Area of the study 38
3.3 Population of the study 38
3.4 Sample and Sampling Techniques 39
3.5 Method of data collection 39
3.6 Instruments for Data Collection 40
3.7 Reliability of Instrument 40
3.8 Validity of the Instrument 41
3.9 Method of Data Analysis 41
4.1 Data Presentation 42
4.2 Analysis of Research Question 45
Summary, Conclusion and Recommendations
5.1 Summary 50
5.2 Conclusion 51
5.3 Recommendation 52
The research work focuses on graduate unemployment and how the National Directorate of Employment (NDE) has helped in curbing it in Kaduna state. The work is aimed at determining the cause and effect of Graduate Unemployment in Nigeria, highlight various policies and programmes put in place by the Government to curb unemployment, assess the National Directorate of Employment and find out problems (if any) hindering the effective performance of the directorate and provide possible solutions. Data was collected from both primary and secondary data while the systematic sampling method was used in determining the sample size and the opportunistic sampling method was used in its administration. Statistical tables and charts were used in the data analysis while the Average Mean Score method was used for the test of hypotheses formulated. The three hypotheses which states “that inadequate awareness of the activities of the National Directorate of Employment has led to poor enrolment”, that inadequate skills acquisition has led to a rise in graduate unemployment in Kaduna state” and “that poor funding has undermined the effectiveness of the National Directorate of Employment Kaduna state” were accepted. It was discovered that inadequate awareness and poor funding of the activities of the NDE in Kaduna State undermined its activity, and that skills acquisition is an effective tool in reducing graduate unemployment. Consequently, specific skills acquisition schemes have been recommended as elements that could empower unemployed graduates; that specific skills acquisition schemes should be included in the curriculum of post-secondary schools. Organizing symposia, seminars and using the media were some of the recommendations made for improvement on the awareness of the activities of the National Directorate of Employment.
1.1 Background to the Study
With the recent economic or global recessions experienced at households and national levels, unemployment is no longer an alien word, as it has become part of everyday lexicon. Even the western world has for some years now experienced a notable rise in unemployment rate; Welle (2010) in his work Euro-Zone Unemployment Climbs to 10% High said the official unemployment rate in the 16 European countries that use the euro rose to 10% in December, 2009. Comments and characterization abound on the various dimensions of unemployment. To the International Labour Organisation (1982), Unemployment can be said to occur when a person is available and willing to work but currently without work. One is forced to ask how many Nigerians are willing and available to work but are currently without job.
Frank and Bernard (2001), in their book titled “Principles of Economics” noted that:
The unemployment rate in a nation is too significant to be ignored as it is necessary in assessing the level of economic activity in a country. Besides real GDP, one statistics that receives a great deal of attention from both economists and the general public is the rate of unemployment. The unemployment rate is a sensitive indicator to the conditions of the labour market. When the unemployment rate is low, jobs are secure and relatively easier to find. Low unemployment is often associated with improving wages and working conditions as well as employers competing
to attract and retain workers. In nations, most especially, developing countries like Nigeria unemployment serves as a major yardstick for development as was rightly portrayed in Dudley Seers definition of development. Seers (1969) asserted that:
The questions to ask about a country’s development are therefore: what has been happening to poverty? What has been happening to inequality? What has been happening to unemployment? If all three of these have declined from high level, then beyond doubt this has been a period of development for the country concerned. If one or two of these central problems have been worse especially if all three have, it would be strange to call the result “development” even if per capita income doubled. What then will you think of an able-bodied young man who is a graduate and currently unemployed, with a lot of dependants waiting on him for survival, or a young family man who was doing very well in a leading financial institution and was suddenly, laid off due to the Economic Recession? The right-sizing and downsizing in Federal Parastatals has also led to a considerable loss of job. Victims of all the aforementioned situations are likely to pass through psychological trauma due to job losses, that is, if they are strong enough to withstand the embarrassment of being laid off and subjected to subsequent unemployment. In an analysis of unemployment problems in Nigeria, Onosode (1982) stated that:
Economic Development is about people and people are the most important resources required to bring a about development. When large numbers of people suffer hardship and deprivation because of inadequate opportunity in the National Economy for gainful employment, whatever level of development is achieved becomes of questionable value. Besides, when able-bodied men and women are involuntarily unemployed, the nation is underutilizing its most important resources and realizing less than its full potential in development. Finally, when the rate of unemployment is intolerably high, it may be impossible to prevent the desperate unemployed from disrupting productive processes and thereby making the employed less productive apart from the threat it possess for the maintenance of law and order except perhaps under threat of grossly repressive laws.
The effect of unemployment as noted by Onosode (1982), which ranges from underutilization of human resources, economic hardship, social and civil unrest, pose as threats to the much-desired development.
How then did this situation emanate? What are the causes of unemployment? The costs of unemployment in any society cannot be overlooked or overemphasized, as every remedy that will be proffered has to look at the root cause of unemployment in the nation.
In a bid to address the menace of unemployment, various policies have been put in place by the Federal Government of Nigeria. Notably, the Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) was established in 2003 to promote the development of Micro, Small and Medium Enterprises (MSME) sector of the Nigeria economy. It is to source, process and disseminate business information, develop policy, establish business support programme, build capacity and promote services, enhance MSME access to finance. Another of such programmers is the Nigerian Agricultural Co-operative and Rural Development Bank (NACRDB) Limited which is dedicated to financing agriculture at both micro and macro levels. They are to provide affordable financial and advisory services to the farm and non-farm enterprises of the Nigeria economy using well trained and highly motivated staff, backed by appropriate technology. Others which were established but later scrapped include: the Directorate for food, Roads and Rural Infrastructures otherwise known as (DFRRI), Mass Mobilization Self Reliance and Economic Reconstruction (MAMSER) and the National Agricultural Land Development Project (NALDA) created by the Babangida regime but scrapped by the Abacha regime.
The average unemployment rates in Nigeria for the decades of the 1960s and 70s were about 2% and 4.5% respectively (National Bureau of Statistics), which was considered both physically and economically sustainable. Unfortunately, in 1985 it rose to 8.5% which was considered high. Thus, as a result of the rising rate of unemployment and its possible consequences, the Federal Government of Nigeria established a committee in 1986 to proffer solution to the menace (unemployment). The committee’s recommendations formed the basis for the establishment of the “National Directorate of Employment” in 1986 with the aim of curbing and reducing the rate of unemployment through skills acquisition, self employment and labour intensive work scheme.
HISTORY OF NATIOANAL DIRECTORATE OF EMPLOYMENT (NDE)
The national Directorate of Employment (NDE) was established in November 1986. It began operations fully in January 1987. The birth of the directorate was predicted on the effects of the economic recession of the 80s which led to a drastic reduction in capacity utilization and consequent outright closure of industries in Nigeria. Equality, other macro-economic policies of the government of the day such as the Structural Adjustment Programme (SAP), devaluation of the Naira, privatization and commercialization of the Economy, etc, resulted to massive job losses in both the public and private sectors of the economy.
As a direct response to the rising trend of unemployment, the then military government headed by general Ibrahim B. Babangida, set up a committee headed by Mr. Stephen O. Chukwumah (The Chukwumah committee). The committee was charged with the task of proffering a sustainable interventionist solution to mitigated the rising level of unemployment in Nigeria. The committee established that the informal sector of the national economy had operators and employees who were mainly low skilled, semi-skilled and or unskilled. This group also constituted about 90% of the workforce within the sector. This situation therefore placed skills acquisition/training on the front burner of unemployment creation.
The NDE’s enabling Act, CAP 250 of the laws of the federal Republic of Nigeria, 1999 (formerly Decree No. 34 of 1989) gave the NDE her legal backing as an employment agency statutorily charged with the responsibility to design and implement programmes to combat mass unemployment.
To further enhance and streamline he strategies of the NDE in mass Job generation, a committee, the AHMED JODA committee of 1999 streamlined the activities of the various poverty Alleviation Agencies in the country. Thus NDE’s activities were streamlined and made to focus mainly on training for job generation with resettlement limited to only symbolic to test the efficacy of her training activities the law establishing the NDE present its mandate as follows:
- To design and implement programmes to combat mass development.
- To articulate policies aimed at developing work programmes with labour intensive potentials.
- To obtain and maintain a data bank an employment and vacancies in the country with a view to acting as a cleaning house to link Job seekers with vacancies in collaboration with other government agencies; and
- To implement any other policies as may be laid down from time to time by the Board established under sections of the enabling Act
The NDE therefore derives its routine functions from this mandate. The main goal therefore is to combat mass unemployment through skill acquisition, self-employment and labour and labour-intensive work schemes. In order to achieve our objectives, is has become pertinent to find more avenue to connect with our target audience the unemployed. The aim of this blog is not only to sensitize the unemployed about the NDE’s programmes and schemes but to showcase successful beneficiaries of NDE schemes and their businesses, and to provide ‘Do-it-yourself’ project which our readers can o at home to earn some extra income. It is our hope that the success stones of our past beneficiaries will encourage our readers to register with the NDE in abide to develop themselves.
1.2 Statement of the Problem
Unemployment rate in Nigeria as at December 2009 stood at 19.7% (National Bureau of Statistics). This is a nation blessed with both human and material resources. This definitely has had an adverse effect on the economy, as many able bodied people out of frustration and due to inadequate infrastructure eventually resort to different vices witnessed in various parts of the country. Due to poor infrastructural facilities, unfavourable conditions of living and poverty youths have become restive and sources of nuisance. Ake (2010) in the Guardian Newspaper of Tuesday March, 30, opined that “unemployment remains the greatest challenge of the economic well being of the Nigerian Nation”.
This was the situation in the 1980’s with a global recession which became progressively worse for Nigeria. This was because of the inherent weakness in the economy, sudden reduction in oil prices which eventually lead to cuts in government expenditure leading to a reduction in employment opportunities, (NDE Brochure). Clearly, curbing the high unemployment rates, economic wastages such as excessive loss of output which manifested in a reduction of Gross Domestic Product (GDP) and gross underutilization of human resources were among the reasons given for the establishment of the National Directorate of Employment (NDE).
The National Directorate of Employment was established with the main function of combating mass unemployment through skills acquisition, self-employment and the labour intensive programmes, (NDE Brochure, 2006). This they do through their various programmes which include: National Youth Employment and Vocational Skills Development Programme
- Small Scale Enterprise and Graduate Employment Programmes
- Agricultural Sector Employment Programmes
- Special Public Works Programmes
- Provision of Transient Jobs
Unfortunately, the unemployment rates have been on the rise. In 2005 the unemployment rate as recorded by the NDE was 11.9%, in 2006 14.6%, 2007 10.9% while as at December 2009 the Bureau of Statistics gave the unemployment rate as 19.7%. Predictably, this has also been accompanied by a high rate in social vices. From the forgoing, one is forced to ask if the National Directorate of Employment which is charged with the main aim of combating mass unemployment through skills acquisition, self employment and labour-intensive work scheme is living up to its mandate. Or are their other factors responsible for the rise in unemployment rate?
On the other hand, there could possibly be other factors hindering the effectiveness of the NDE thereby leading to the perpetual rise in unemployment rates. Inadequate awareness could lead to poor enrolment into the scheme. Since, unemployed graduates can only benefit from the NDE when they enroll into the NDE’s skills acquisition scheme. Inadequate or poor funding could also affect the efficiency of NDE. As was rightly portrayed by Adebayo (1972), “every administrative act has a financial implication”. This could imply that there cannot be effectiveness and efficiency without proper funding. Thus, in the light of the above, the work is assessing the role which the National Directorate of Employment plays in reducing graduate unemployment in Kaduna State; find out the factors (if any) affecting its effectiveness and proffer possible solutions to them.
1.3 Research Questions
- Is the national Directorate of employment combating mass unemployment through it’s skill acquisition scheme?
- To what extent does the government fund the programmes of National Directorate of Employment (NDE)?
- To what extent has the national directorate of employment in solving unemployment among graduate state?
1.4 Purpose of the Study
- To determine the extent to which NDE National Directorate of Employment is combating mass unemployment through its skills acquisition schemes.
- To determine the extent to which the government is funding the programmes of the National Directorate of Employment.
- To identify the extent to which national of Employment contributed in solving graduate unemployment among graduate state.
1.5 Significance of the Study
The significance of the study lies on the fact that is of immense benefit reducing graduate unemployment in Kaduna State. It will also help the researcher to know the benefit of skills acquisition and graduate unemployment could result to. the evaluation of the effects of graduate unemployment Kaduna, which will also help to reduce unemployment at large.
1.6 Scope of the Study
The time frame of this work has 2005-2009. This research work has on graduate unemployment in Kaduna state and two local governments, that is, Zaria and Kaduna state south local governments are used as our focal points. They were chosen because they have the largest number of beneficiaries.
1.7 Limitation of the study
A major limitation to this work encountered by the researcher was the dearth of unemployment
statistics from both the National Directorate of Employment. For good reasons, the Bureau of Statistics and internet was contacted for statistical figures. Lack of cooperation on the part of some members of staff and beneficiaries of the National Directorate of Employment was also a constraint. Importantly, persistence and persuasion formed part of the researcher’s arsenal.
1.8 Definition of Terms
Graduate: The Encarta Dictionary defines a Graduate as “somebody who has completed studies: somebody who has obtained a diploma or degree, e.g.from a high school or college”
Thus, in the context of this study anyone who has graduated froma tertiary institution; be it Polytechnic, Monotechnic, Colleges of Education, or the University and obtained a Diploma, National Certificate of Education (NCE) or Degree is considered a graduate.
Unemployment: To the International Labour Organisation Unemployment occurs when a person is available and willing to work but currently is without work. Thus, for the purpose of this work, Unemployment is defined as a situation whereby a person is currently without a means of
Awareness: Having knowledge of something from having observed it or been told about it;
knowing that something exists because you notice it or realize that it is happening. Awareness as used in this study refers to a working knowledge of the NDE’s activities.
Funding: Funding could be defined as financial support or the process or act of providing the money required for something. In this work, funding refers to the budgetary allocations allocated to the National Directorate of Employment
Employment: In this study employment refers to “the situationin which people work”.
Labour Force: Thomas et al defines it as the non-institutional population who are working or looking for work
Inadequate: The Encarta Dictionary (2008) defines inadequate as “not enough or not good enough
: failing to reach an expected or required level or standard”. Hence, for the purpose of this work inadequate refers to “Not enough or insufficient”
Graduate Unemployment: For the purpose of this work, Graduate Unemployment is defined as the condition whereby graduates from higher institutions are currently without work.
Underemployment: This is a situation where certain persons with specialized skills cannot be engaged on a full time basis but only on 25%, 30%, 40% or %0% of the normal working hours.
This happens principally because of shortage of funds.
Empowerment: For the purpose of this work, the definition of empowerment which states that; “the process by which a people are authorized or supported to assume responsibility of their own affairs e.g. the empowerment of the poor and women”, was adopted.
1.9 Organization of the Study
This research work is organized in five chapters, for easy understanding, as follows. Chapter one is concern with the introduction, which consist of the (background of the study), statement of the problem, purpose of the study, research questions, significance of the study, scope of the study etc. Chapter two being the review of the related literature presents the theoretical framework, conceptual framework and other areas concerning the subject matter. Chapter three is a research methodology covers deals on the research design and methods adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding. Chapter five gives summary, conclusion, and recommendations made of the study
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