Macroeconomics Group Report: Analyzing Youth Unemployment in Nigeria

This report critically analyzes an article discussing youth unemployment in Nigeria, focusing on its causes, effects, and potential solutions. The study identifies migration from rural to urban areas, rapid population growth, and inadequate education as primary causes. It explores the detrimental effects, including income inequality, increased crime rates, and decreased foreign investment, impacting the country's socio-economic landscape. The report also examines the impact on the tourism sector and the rising unemployment rate, particularly among the 15-24 age group, and job insecurity. The article emphasizes the need for effective solutions to address the challenges posed by youth unemployment in Nigeria, including a focus on the push and pull factors, and the need for improved education standards. The analysis includes references to relevant literature and data sources to support the arguments presented. The report aims to provide a comprehensive understanding of the problem and potential pathways towards sustainable solutions for the Nigerian economy.

MACROECONOMICS

Table of Contents
Main Body.......................................................................................................................................1
REFERENCES................................................................................................................................3

Main Body
The article discusses cause, effect and solutions regarding unemployment problems faced
by the youth in Nigeria. It revealed that the major causes of youth unemployment in Nigeria.
Migration of rural in urban areas is one of the reason. It can be explained using push pull
factor. The push factor is unavailability of people in rural areas due to lack of infrastructural
facilities and unattractive lifestyle. It causes serious underemployment during seasonal cycle.
Rural youth get attracted towards urban areas for employment in industries It leaves rural area
neglected with regard to social and economic opportunities (Aiyedogbon and Ohwofasa, 2012).
There is a rapid increase in the population of Nigeria leaving majority of the individuals
unemployed.
It has been evaluated that the graduates of Nigeria are not employable which shows that
the education standard followed by the schools and universities is not effective enough that can
help in employment of youth in the country.
Other causes are, rapid expansion in education system, lack of steady and sustainable
power supply etc. According to the article, it has greater impact on the country which shows:
 Inequality of income where 65% of the wealth of the country lies in the hands of 20% of
the population. It has also increased violent crimes in Nigeria.
 A decrease in Foreign Direct Investment have also been noticed from USD 8.65 billion in
2009 to USD 6.1 billion in 2010. It shows slower growth rate due to corruption and
political obstacles in Nigeria (Asaju, Arome, & Anyio, 2014).
 It has led to decrease in quality of life due to prevailing family income, insecurity,
tension and conflicts.
 Tourism sector have also been affected by the crisis in Nigeria. It is due to increase in
Boko Haram activities Niger Delta militant, kidnapping etc. Dana air crash is also
another reason of dropping tourism in the country. It has resulted in crashing of aviation
industry as well (Ajufo, 2013).
 Unemployment rate is on increase in the country. In 2010 it was 21.1% which has
increased to 23.9% in 2011. Further, an increase in the population have also been
experienced from 158.8 to 168. It is estimated that the figures may rise in near future as
well. The major effect of unemployment have been faced by middle age between 15-24
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year old. Females have higher unemployment in comparison to males (Bassey and Atan,
2012).
 Another impact of unemployment is job insecurity where people are not happy, free and
feel safe with the process of governance. They don't enjoy protection of fundamental
rights and have access to the resources that can help to access necessities of life.
Unavailability of job opportunity and its security affects the lifestyle of people (George
and Oseni, 2012).
Nigerian people have difficulty in living their life with lost jobs, bankrupt companies,
retrenchment in the organizations and unemployment of younger ones leading to decay of
lifestyle. It has been experienced that there is an increasing phase in these activities leading to
market crash of Nigeria. There is a real danger on democracy of the country have been
experienced.
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REFERENCES
Books and Journals
Aiyedogbon, J. O., & Ohwofasa, B. O. (2012). Poverty and youth Unemployment in Nigeria,
1987-2011. International Journal of Business and Social Science. 3(20).
Ajufo, B. I. (2013). Challenges of youth unemployment in Nigeria: Effective career guidance as
a panacea. African Research Review. 7(1), 307-321.
Asaju, K., Arome, S., & Anyio, S. F. (2014). The rising rate of unemployment in Nigeria: the
socio-economic and political implications. Global Business and Economics Research
Journal. 3(2).12-32.
Bassey, G. E., & Atan, J. A. (2012). Labour market distortions and university graduate
unemployment in Nigeria: Issues and remedies. Current research journal of economic
theory. 4(3). 67-76.
George, E. O., & Oseni, J. E. (2012). The relationship between electricity power and
unemployment rates in Nigeria. Australian Journal of Business and Management
Research. 2(2). 10.
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