Unemployment occurs when a person is available to work and currently seeking work, but the person is without work. The prevalence of unemployment is usually measured using the unemployment rate, which is defined as the percentage of
those in the labor force who are unemployed. Unemployment in Nigeria is one of the most critical problems the country is facing. The years of corruption, civil war, military rule, and mismanagement have hindered economic growth of the country. Nigeria is endowed with diverse and infinite resources, both human and material. However, years of negligence and adverse policies have led to the under-utilization of these resources. These resources have not been effectively utilized in order to yield maximum economic benefits. This is one of the primary causes of unemployment and poverty in Nigeria.
There are a variety of different causes of unemployment, and disagreement on which causes are most important. Different schools of economic thought suggest different policies to address unemployment. Monetarists for example, believe that
controlling inflation to facilitate growth and investment is more important, and will lead to increased employment in the long run. Keynesians on the other hand emphasize the smoothing out of business cycles by manipulating aggregate
demand. There is also disagreement on how exactly to measure unemployment.
As per the report of the World Bank, the GDP at purchasing power parity of Nigeria was $170.7 billion during 2005. Unemployment in Nigeria is a major problem both economically and socially. Unemployment in Nigeria has resulted in more
and more people who do not have purchasing power. Less consumption has led to lower production and economic growth has been hampered. Unemployment also has social consequences as it increases the rate of crime. The secondary-school
graduates consist of the principal fraction of the unemployed accounting for nearly 35% to 50%. The rate of unemployment...