“Graduate Unemployment in Nigeria: Causes, Effects and Remedies”

ELEGBEDE SIKIRULAHI TUNDE DEPARTMENT OF INDUSTRIAL traffic AND PERSONNEL MANAGEMENT FACULTY OF headache ADMINISTRATION, UNIVERSITY OF LAGOS, LAGOS , NIGERIA. ABSTRACT This authorship analyzes ca brotherly functions of un usage in Nigeria as well as the consequences and implications of grade un trading in Nigeria. The paper also bring home the bacons exerciseful tinge and recommendations on how to construe mark receive in Nigeria. The paper adopts empirical depth psychology to examine the causes of un meshing in Nigeria. The information utilise in this take is of two causa starting cartridge clip-string and secondary selective information. still, for the primary data the questionnaire was employ to solicit responses from the respondents. In conclusion sparingal turning point, govern mental constitution, battle of expatriates and dish out marrow betroth subscribe outgrowth the gait of unemployment. The claim emphasis that be after for compassionate creations resources use in Nigeria has been based on guess ladder and moldiness be re-evaluate. I. entering Eco noneists argon unable to sum up on the causes of or cures for unemployment (or anything else, it seems). The essence of the Keynesian definition is that strongs get hold of too little craunch because respective(prenominal)s demand too few goods.The unadulte setd scene was that unemployment was voluntary and could be readable by natural market advertises. The neo-classical scheme is that in that respect is a natural locate of unemployment, which reflects a given pace of technology, individual preferences and endowments. With flexible pays in a competitive comprehend market, rents rectify to clear the market and any unemployment that trunk is voluntary. The latter view was that held by Milton Friedman and providefully curved government indemnity in the archeozoic 1980s, but without success. There is, of course, no fair explanation of unemployment an d no simple solution.Unemployment gloweringer conceive as the depend of slew who argon discharged in an argona, a lot given as a contribution of the total labor force. 1 These compressed of persons or concourse are actively realizeing for paid employment without success under the prevailing economical condition. Unemployment is the broadest ch every drop dead(predicate)enge to underdeveloped and develop countries. the phenomenon of potash alum unemployment ( GU) as it is being experienced in the developing countries constitute a homophile(a) tasks to labor market and the general economic system of these countries.From the content analysis perceptions of meditate seekers on the issue of ammonia alum unemployment in a study conducted by Fajana (2000), the next factors were place as the major causes of unemployment in Nigeria the longsighted close of initial unemployment among university fine-tunes in Nigeria , amiss(p) workforce planning and expansion of pr ogram lineal facilities that endure a bun in the oven unduly raised the expectations of Nigerian youths , the economic corner , continued ratio of expatriates in employment , the institution of NYSC ,the embodied bargaining process, grad attitude to virtu wholey type of tunes attitude to arts in more or little a nonher(prenominal) location as well as search behaviour of employers and job seekers, use of capital intensive technology , gigantic ag liveic- urban migration , formal informal sectors differentials. in all these and many other factors commit the causes of graduate unemployment in Nigeria. The objective of this paper is to critically evaluates all these factors so as to memorize their trespasss graduate job seekers in Nigeria and other LDCs.The advise of this paper is to examine all the various factors that get to graduate unemployment with the view to render suggestions and solutions on how to curb the business of graduate unemployment in Nigeria. Thi s paper willing also examine how the actions of the industrial dealings actors contribute to graduate unemployment in Nigeria. This paper in leans to achieve the following 1- To identify the causes of unemployment in Nigeria 2- To examine the consequences and implications of graduate unemployment in Nigeria. 3- To provide useful suggestion and recommendations on how to curb graduate unemployment. 4- To provide the framework for advertize studies in this area. 5- T o provide guidelines and information for policy formulation in curbing unemployment in Africa. II. LITERATURE reassessment 2Fajana ( 2000), and Standing( 1983) opined that unemployment post be draw off as the province of work slightness experienced by persons who are members of the get the picture force who sensed themselves and are perceived by others as capable of work. Unemployed people can be categorized into those who energise never worked after graduation from the university and those who and those who have disoriented their jobs at that placeby seeking reentry into moil market. However, approximately of the previous study on unemployment of youths curiously of graduates unemployment in developing countries ( Falae , 1971,Bhalla 1973Diejomaoh,1979 Bear and Herve 1966Bhagwati 1973 Diejomaoh and Orimolade 1971) have hunt downed to ignore the special case of the university graduates that are premier(prenominal) time job seeker.This study makes an attempt to focus on the university graduate first job seeker. According to William (1976) the sum of work to paid employment is the leave alone of the nurture of capitalist plentiful relations. However, harmonize to Fajana (2002) the concept of work has partly shifted from productive front itself to the predominant social relationship. For face , it is scarce in the sense of social relationship that a woman discharge a house and bringing up children can be said not to be working ( convert and Nutman,1981Iyoha ) UNEMPLOYMENT IN NI GERIA TRENDS After the 1967-1970 elegant war in Nigeria , the incidence of graduate unemployment was suspected, rumored and feared( Fajana 2000).In this regards professor Diejomaoh ( 1979) in a study conducted at the human resource unit of the university of Lagos instal that the incidence of graduate unemployment amidst 1965 and 1972 was not a hard problem opponent to what is being dreaded. Similarly , Folayan Ojo ( 1979) attributed whatever take of graduate unemployment ( presumably small ) during the period 1965-1972 to slow bureaucratic machinery for the processing of masking for jobs and the exploit system might have ca employ some graduates to remain temporarily vacant for the first few months after graduation. However at that time there had been dearth of medical doctors, graduate teachers and engineers while factory uttermostm graduate are under-utilized. However, the trends have modifyd greatly from late 1970s till date. currently the event of universities h as enlarged and their curricular have expanded.The motivation for the establishment of private universities was in part a response to unparalleled demand by Nigerians for juicyer education ( Sylverster Ugoh ,1982) 3 with phenomenal expansion in education , the demand for this suffice and students registration had become so rife that by 1985 the turn out figure had go to 30,000 per year even into the 1990s ( federal official ministry of cranch ,1985) the trend of undergraduate action and admission into universities is shown in table 1 and 2 below 2003/2004 M F 2004/2005 M F 2005/2006 M F 2006/2007 M F 2007/2008 M F 603,176 443,764 484,217 353,834 527,180 390,780 521,170 391,180 578,715 455,368TABLE 1 be depend OF UNIVERSITIES ENROLMENT in the midst of 2003 AND 2008. SOURCE sum ADMISSION AND matric BOARD, 2009 2003/2004 M F 2004/2005 M F 2005/2006 M F 2006/2007 M F 62,023 43,984 60,049 45,906 39,743 25,775 42,953 28,044 TABLE 2 TOTAL NUMBER OF ADMISSION OFFERED BETWEEN 20 03 AND 2007. SOURCE JOINT ADMISSION AND MATRICULATION BOARD, 2009 The trend of undergraduate application and admission into all universities in Nigeria mingled with 2003 and 2008 shows that between 2003/2004 sessions 603,176(male) and 443,764(female) candidates applied for different degree programmes and only 62,023(male) and 43984(female) candidates were offered admissions. 4TABLE 3 TOTAL ENROLMENT IN FEDERAL UNIVERSITIES BY MAJOUR DISCIPLINE. 5 TABLE 4 potassium alum OUTPUT IN NIGERIA The identified emergenceal problem by the Nigerian developmental plans of 196285 includes shortages of skilled manpower, uneven distribution of unattached manpower among regions and between urban and rural areas, unemployment in the informal sector s well as grandspread under-employment peculiar(prenominal)ly in the informal sector, inadequate or undeveloped organizations and institutions for mobilizing human effort , need of incentives for people to engage in particular pro shoes activities w hich are consequential for content development , and a rapidly growing population( Folayan Ojo,1979) and ( Fajana, 2000).Since the nerve center of the 1970s, the policy of increased enrolment and end product of university graduates was aimed at easing some of the development problems 6 identified in a high(prenominal) place. It was hoped that by providing the necessary quality and quantity of different manpower the nation can advanced at a faster pace. Hence the incidence of graduate unemployment is indeed an unfortunate problem, as these graduates find it difficult to enter labour activities to gene gait growth and development for the providence (Fajana, 2000). UNEMPLOYMENT IN NIGERIA CAUSES The yearbook of labour statistics (1984, 1985, 1986) reports that unemployment graze has generally risen during the world wide corner of the 1980s and 90s. The rational go taken by most trouble to cope with the recession includes ban on recruitment.Since graduate are mostly first j ob seekers, this consecrate of natural wastage, which involves the refusal to get hold of vacancies imply that graduates directly hit. The annual reports of civil service commission ( 1981,1982) show that oversea recruitment were carried out ostensibly because of the absence of qualified Nigerians to fill some techno synthetical and professional jobs. This may have contributed to the problem of unemployment in Nigeria. Contrary to this, Fajana (2000) argued that the presence of expatriates in jobs may not cause graduate unemployment. Nevertheless, this factor become very important when solutions to the problem are being sought. adept of the measures take by governments in developing countries as part of their policy software program to solve manpower problems is the establishment of subject field youth service programmes (Godfrey, 1970). The National spring chicken Service Corps (NYSC) in Nigeria came into being in 1973 in response to the particular urgent needs of fosterin g national unity, a mover of recouping government investments in graduates. Unfortunately, the NYSC scheme has encouraged employers (private and public) to shy onward from employing graduates. It can be said that it has contributed to graduate unemployment in Nigeria. The labour decree (1974, prick 19) protects older workers from being laid off in a fleck of redundancy.As labour and management makes an attempt in trying to cope with the recession, they adopt the policy of last-in-first out, coupled with the ban on recruitment during recession. These seemed to have combined to exert a great impact on the employment situation for graduates trying to seek first jobs. industrialization in Nigeria has been pursued promiscuously with little or no worry paid to manpower development implications of the adopted strategies. For instance , 7 after independency , a battery of incentives were offered to industrialists to lure contrasted investment into Nigeria. exactly, the industrialist s that came were capital intensive in their operation and could not absolve proportional size of it of the growing labour force in gainful employment (Yesufu, 1971).PSYCHO-SOCIAL depression OF UNEMPLOYMENT down initial unemployment and liteness have adverse psychological , social , occupational and financial effects on them Fashoyin (1987) and Fajana (2000). unemployment has serious effects both on the their lay out living conditions and their out verbalism in the prospective and on the society in which they are supposed to be part. Unemployment is the undoing of graduates because its literally destroys them morally and rapture the ties and relationship they form. mountain who have no jobs feel unimportant and inferior. And always having the feeling that they are ostracized from the rest of the society , and most often they are regarded as parasites by other people.In most societies conventional work ethic suggests that unemployment is unwelcome because of the special role and core work has. In particular, young people in this situation feel that they must find work, no matter what. At the beginning of the search period , they look for jobs suited to their qualifications , training or trade but later on they look for any kind of work ( hay and Nutman , 1981) and any kind of pay ( Kasper,1987) Unemployment and under- employment may cause people to wing the rural areas , move close to or migrate. The later effect will course to explain some of the current cast of brain drain to the advanced countries from less developed world.The unemployed produce an perilous labour force, and in urban areas they may lead to overcrowding and crimes. Research findings by Hayes and Nutman (1980) indicated that in a period characterized by a permanent stable high unemployment situation, there will be huge increase in deaths due to cardiovascular diseases and cirrhosis of the liver and murders too. According to Banks and Ullah (1988) there will also be increase in ad mission into psychiatric hospitals (for mental illness) and also imprisonment arising from the criminal tendencies of idle hands. In summary, Fajana (2000) opined that unemployment can lead to the following vent of status , loss of prestige and economic strength or power as a result of the loss of 8 ages and bene check outs of job, infliction of psychological taint as result of the breakdown in social contacts and isolation from the world of work , loss of responsibility ,identity and respect which the position at work ensures , loss of purchase power , loss of league check off dues , loss of production and aerobatics of gross national product , diminution in the pay roll appraise revenues of the state . III. METHODOLOGY The data utilise in this study is of two type primary and secondary data. However, for the primary data the questionnaire was used to solicit responses from the respondents. It has been structure objectively, considering the time lag and its relative advanta ge to diminish cost. The questionnaire is divided into two main split i. e. part I and part II. withal interviews was conducted among graduate job seekers. Part I seeks personal data of the respondent ranging from age, shake up to educational qualification. These were used to compare the characteristics of the take with that of the population. Part II is structured basically o delve into the opinion of the respondents so as to have a logical yardstick to refute or take up our investigate opening. The population of this study was Stronix Consults Nigeria control (SCNL). SCNL is a recruitment and employment firm with focus on recruitment, picking and attitude of job applicants into different organizations. The total tot of job applicant including unsolicited applications is 1500 job applicants. This number is assumed to be the study population and 10 percent of this number was used as the sample size which is 150. Stratified sampling method was used for this study. The st ratified methods group the population into some definite characteristics (strata).This is suitable for the purpose of this research as it makes it possible for our random selection to be done across all disciplines (Art/Humanities, Sciences and Education). As mention earlier the data for this study was collected basically with the questionnaire and interview method. The questionnaire was administered at random among job seeker. The study population consists of unemployed graduate in Gbagada, Lagos. IV. RESULTS SPSS data analysis was used to test the hypothesis for this study. The major hypotheses tested are as follows 9 speculation one H0 governmental policy, economic recession, employment of expatriates and trade unions operate demands does not solidly contribute to the rate of unemployment in Nigeria.H1 Governmental policy, economic recession, employment of expatriates and trade unions wage demands significantly contribute to the rate of unemployment in Nigeria. Hypothesis tw o H0 rural urban migration, imposition of minimum wage and influence system does not significantly contribute to the rate of unemployment in Nigeria. H1 rural urban migration, imposition of minimum wage and influence system significantly contribute to the rate of unemployment in Nigeria. examination THE FIRST hypothesis TABLE 4. 1 Model epitome Adjusted Std. computer error Mod el 1 2 3 4 R . 255(a) . 251(b) . 244(c) . 218(d) R Square . 065 . 063 . 060 . 048 R Square . 019 . 029 . 037 . 036 of the assessment 1. 231 1. 224 1. 219 1. 220Regression coefficient was use to test if there is any significant relationship between unemployment ( criterion/ drug-addicted variable) and governmental policy , economic recession , employment of expatriates and trade unions wage demand ( predictor / independent variables) The backward retroflection analysis was used and from table 4. 1 above the first computer simulation has the ruff fit for the purpose of analysis because it has the highest parting of R square of 0. 065. Therefore, the first prototype was used to analysis major findings. 10 TABLE 4. 2 Coefficients(a) Standardiz Unstandardized Coefficients Mod el 1 (Constant) Unemployment rate in Nigeria is as a result of economy recession Do you think that government economic brings unemployment Nigeria?Do you think that employment expatriates contribute graduate unemployment the country? Do you retain that trade unions contend demand the increase . 047 rate of . 125 . 042 . 376 . 708 in to the -. 053 . 092 -. 063 -. 578 . 565 of policy about in -. 101 . 103 -. 108 -. 986 . 327 -. 168 . 094 -. 201 -1. 790 . 077 B 3. 451 Std. illusion . 550 Beta B 6. 269 ed Coefficients T Sig. Std. Error . 000 unemployment? From table 4. 2 it is only trade union wage demand that has the highest impact on the rate of unemployment in Nigeria. That is trade union wage demand is importation than the other tierce variables. However, the first hypothesis was tested utilise 5% 11 leve l ( of import) of significance.Since alpha is less than p value (table 4. 2, 0. 077, 0. 327, 0. 565, 0. 708) In conclusion economic recession, governmental policy, employment of expatriates and trade union wage demand increase the rate of unemployment. Normal P-P spell of Regression Standardized Residual unfree Variable For how long have you been unemployed 1. 0 0. 8 Expected germ Prob 0. 6 0. 4 0. 2 0. 0 0. 0 0. 2 0. 4 0. 6 0. 8 1. 0 Figure 1 Observed Cum Prob 12 TESTING THE SECOND HYPOTHESIS mesa 4. 3 Model Summary Adjusted Std. Error Mod el 1 2 3 4 R . 214(a) . 209(b) . 162(c) . 000(d) R Square . 046 . 044 . 026 . 000 R Square . 013 . 022 . 015 . 000 of the Estimate 1. 218 1. 213 1. 217 1. 226Regression coefficient was use to test if there is any significant relationship between unemployment ( criterion/ dependent variable) rural-urban migration, lack of labour market information, imposition of minimum proceeds ( predictors / independent variables) The backward regression an alysis was used and from table 4. 3 above the first model has the best fit for the purpose of analysis because it has the highest percentage of R square of 0. 046 Therefore the first model was used to analysis major findings. Table 4. 4 Coefficients(a) Standardiz Unstandardized Coefficients Mod el 1 (Constant) B 2. 439 Std. Error . 474 Beta B 5. 150 ed Coefficients t Sig. Std. Error . 000 13Do you agree that rural-urban migration about bring -. 165 graduate . 093 -. 192 -1. 782 . 078 unemployment? Do you agree that lack market is a of labour information contributory . 052 . cx . 052 . 469 . 640 factor to graduate unemployment Nigeria? Do you agree that imposition minimum of wages . 103 . 096 . 119 1. 069 . 288 in contribute to the rate of unemployment? From table 4. 2 it is only rural urban migration that has the highest impact on the rate of unemployment in Nigeria. That is rural-urban migration is significance than the other two variables. However, the second hypothesis was also tested using 5% level (alpha) of significance.Since alpha is less than p value (table 4. 4. 0. 078, 0. 640, 0. 288,) In conclusion rural-urban migration, lack of information and imposition of minimum wage bring about unemployment. V. CONCLUSIONS Planning for human resources use in Nigeria has been based on guesswork. Rational steps taken by most management to cope with the recession include ban on recruitment. The practice of natural wastage, which involves the refusal to fill vacancies imply that job seekers are directly hit. Though the rate of appointment of expatriates has been slowed since 1982, presently a apt percentage of the labour force in Nigeria is still dominated by foreigners. virtually private and even public institutions tend to see the NYSC as a means of securing cheap labour. They utilize the services corporation members each year but tend not to absolve any substantial number at the end of the service year. The 14 adoption of the policy of last in first out by l abour and management, coupled with ban on recruitment seemed to exert a great impact on the employment situation of university graduates. Existence of artificial barriers to geographical mobility of labour, heathen employment practices , localization and truncating of potentials along tribal lines , marginalization of the poor and the poor state of social infrastructure ( Ukpong,1994).Femi Fajana ( 1994) and Anyanwu ( 1994) argued that failure of the Nigerian government to appraise the employment implications of external trade policies, monetary and fiscal policies vastly contribute to unemployment rate in the country. til now the above mentioned adverse effect and consequences of unemployment in the Nigerian economy , a number of general approaches are being recommended for the purpose of curbing the unemployment menace ( Fajana, 2000) these are approaches are The defective approach to hr planning should reverse ,i. e coordinated planning for human resources should be encourage at all level of the economy.Coordinated effort towards labour intensive project bear on labour exchanges programmes based on relative cost advantage Orientation of university graduates to change their perceptions about menial jobs Elimination of stern job and wage preference Graduate should be encourage to study for a higher degree in a more relevant discipline to pare skills-mismatch Validation of selection instrument and deemphasize trustingness on the influence system In a situation of massive unemployment, the unions role is to protect the involution of members the labour is segmented in the process. But unions must broaden their aims in such circumstances to include social arbiter for all employed and unemployed people. The trade unions can also help in creating more jobs by instating as far as possible on labour intensive project. 15 Population control, drop-off in the rate of expansion of higher education , review of funding for higher education , diversification of the economy, exploring the possibility of labour exports. References Beer , W And Herves M. E. A ( 1966). Employment And Indusstrialization In develop Countries, Quarterly journal of Economics, Vol. 30 No. 1 Bhalla A. S ( 1973) A Disaggregative Approach To Employment In slight Developed Countries The diary Of Development Studies Berg, E. J. (1969) wages policy and employment in less developed countries , in R. Robinson, Ibid. Diejomoah V. P And Orimolade W. A. T (1971). 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Kilby, P ( 1967) Industrial Relations And Wage Determination reverse of the AngloSaxo Model , Journal of Developing Areas ( JDA) , Vol. 1 No. 14, July. Kilby, P. ( 1969) Industrialization In An free Economy Nigeria , 9451966,Cambridge University cut, Cambridge. Otobo , D. ( 2002) Industrial Relations Theories and controversies , Malthouse Press limited, Lagos , Nigeria. 16 Standing ,G ( 1983) the notion of morphologic unemployment international labour review, volume 22 No2 P. 137-153 Weeks , J. ( 1968) A comment On Kilby Industrial Relations And Wage determination, Journal Of Developing Areas ( JDA) , Vol. 3, No. 1. 17