Economic Effect Of Unemployment In The Nigerian Economy (a Study Of Enugu North)

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Going through the present investigation of problem & prospects of management of unemployment in Nigeria, many finding and results were made in the service and finance oriented organization.

The result postulated that prospects of management of unemployment in the Nigerian patterns in the organization which in our act as a motivational factors to high productivity increasing work performance to achieve organization goals and objectives.

          On the other hand problem associated with prospects of management of unemployment adopted in every organization will identify any motivational problem inherited in that organization. It will further be having big problem which thus intends negative.

          However effective prospects of management of unemployment is vital in every situation in the organization.







According to the Advanced Learners Dictionary, unemployment is defined as the amount of unused. When a factor of production is not doing any job we say it is unemployed. In this project we are concerned mainly on the economic effect of unemployment in the Nigerian Economy in particular. Emphasis on Labour which is the most important and active factor of production which simply means, that without Labour all other factors will not be put into practice then all other factors will not be put into practice. Then all other factors are regarded as passive factors of production.

Unemployment is a very dangerous phenomenon to an industrialized economic system. Further primitive communities in Nigeria were usually self sufficient and had no unemployment problem, though their standard of living is a very low living. They share the work that had to be done and any spare time easily enjoyed as leisure. There is still little unemployment in Nigeria engaged in still little unemployment in Nigeria engaged in the production of primary products, products, though these communities may suffer a general reduction in their product, fall in the world market. He often advocate fro industrialization as a penance to unemployment problem, but in as much as that is true it is also very important to know that this industrialization coupled with the division of labour and specialization bring along with them this virus problem called unemployment to industrial progress, how wonder it was leading industrialized nation that were the first to introduce schemes of social security.

The ugly and nerve cracking canker – worm which has right from time been controlling its disastrous head in the blood stream of the general populaces of the worlds has been a thing of concern to great philosopher of economist and socialist of the olden days. This has led  them to come up with different ideal theories and beliefs all in gust to recommend a drug from disastrous disease called unemployment.

Anyaele (1995 : 214) It stated that unemployment may be defined as a situation where some people who fall within the age the working population capable and willing to work, but are unable to obtain a befitting work to do.



Anyaele (1995: 214) stated that the problem has become continually without solution being in sight. It has constituted itself into one of the worst enemies of populace in this part of the world that the problem unemployment has been exacerbated by the previous and retrenchments unbridle rural urban migrants etc.

Unemployment is a great problem associated with both rural and urban communities of the Nigerian economy. It results to the following problem to Nigeria.

a)       Threat to Peace: The unemployed constituted available tools for political trouble-shooters in a country.

b)      Escalation of Crime Rate: An idle mind they say is the devils workshop, and as a result of this many unemployed youths and able bodied men and women engage themselves in crime such as armed robbery, prostitution, current trafficking, touting, drug addiction etc. In order to earn a living.

c)       It Causes Immigration: That is to move from one place to another. This can be rural / urban or from one country one country to another, which creates vacuum in a nation march to economic and social development.

d)      Reduction in Investment: The money spent in educating the unemployed and the once spent as depredates should have been invested in one business or another.



                   Rural / Urban migration is the movement of people from one country side or villages to cities or town. This Rural / Urban migration is known as push and factor. Pull factor are those things within urban area while push factor, while push factor are those condition in the area that camped people to have. These push pull factor include the following.

Lack of Social Amenities: Where there is no availability of recreational facilities in the Urban cities, higher education, employment opportunities, marriage, natural disaster, political reason etc.


                   The importance of studying this rural-urban migration is to help reduce the number of people that will move out of the countryside or the village to cities or town. To curb this mass movement of people from Rural / Areas, the following should be done by the federal government of Nigeria.

·                    Establishment of industries in the rural areas.

·                    Provision of recreational facilities.

·                    Improvement of Agricultural system.

·                    Establishment of higher institution in the rural areas. This problem of unemployment to the Nigeria economy is to find a sound solid solution to it (unemployment) the federal government of the country Nigeria should adopt the following measures to eradicate this particular problem.

 (a)    The government should provide sound and sustainable education and staff developments, because when education is functional and qualifies it makes the recipient to the independent in thoughts and action. The training and development of staff increase the skills of the workers to ment the challenges of the time.

(b)     The government should provide social amenities to the rural areas. This provision of social amenities will reduce migrants and make many school leavers to accept to accept to work and reside in rural areas.

(c)      The government should control the population of the economy optimum population will help to solve our unemployment problem because it will bring our population to equilibrium point to match with our available resources.

(d)     The government should create more states and local government, this should be done based on the available resources in order to create more employment opportunities.

(e)      The government should establish industries: The establishment of many industries will create more employment opportunities.


          In this aspect we are concerned  with the  types of employment in the Nigeria economy, they are as follows:

(a)     FRICTIONAL UNEMPLOYMENT: This type of unemployment  arises when people leave their present job with hope of getting another one or a new one, but fails at that time. It may or may not be a temporary unemployment depending on the prevailing economic situation. Therefore friction unemployment is the period between the tie the worker left his former work and the time of getting a new job or work.

(b)     SEASONAL UNEMPLOYMENT: This type of unemployment is caused by seasonal changes that affect some type of work. For example workers that work in road construction companies remain unemployed during raining season. On the same hand farmers stay idle during the time between harvesting and planning periods.

(c)      SEARCH UNEMPLOYMENT: This type of unemployment occurs when some people turn down offer of work in search of better paid employment. How long this search will last depends on the prevailing economic situation in the country.

(d)     VOLUNTARY UNEMPLOYMENT: This type of unemployment un decorate occur when some people refuse to take up  any paid employment. That is to say that they voluntarily decide not to take up any paid employment. For example some husband may order their wives not to do any type of work but to stay at home as fulltime house wives.

(e)      STRUCTURE UNEMPLOYMENT: This type of unemployment is as a result of slight change in the industrial structure of a country. Workers will be retrenched as a result. This is caused by economic recession and it happened in Nigeria in 1984 when firms fold up as a result of this.             

   (f)   DEFICIENT DEMAND (CYCLICAL) UNEMPLOYMENT: This  type of unemployment occurs when there is decrease in the quantity of good demanded or there is over production which result to fall in prices. Industries will be affected and this may cause the off of workers of the industries that are affected.

(g)     UNDER EMPLOYMENT: This type of unemployment result when a workers potential is under utilized or when a worker is paid less than the effort he puts on the job. E.g. A graduate doing the work of a cleaner.








Hanson J. Lioyd (1997)                    A Textbook of Economics S. 6th Edition; London; E.L.B.S. and Macdonald and Evans. 

Dr. M. Fogiel (1980)                         The Economic Problem Solver; New York. Research and Education Association.

J.U. Anyaele (1991)                          Comprehensive Economics for Senior Secondary School, Lagos, Johnson Publisher.






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Economic Effect Of Unemployment In The Nigerian Economy