What are the Causes of Unemployment in Nigeria?


Unemployment is one of the major issues affecting Nigeria’s economy due to the fallout from the economic challenges. Nigeria currently are facing different aspect of unemployment which are frictional unemployment which is caused by industrial friction. There are jobs but people can’t fill them because they don’t have the skills or are unaware of the existence of the jobs. This occurs due to ignorance, immobility of labor, shortage of raw materials and even break down in machinery. There is also the residual unemployment that is caused by old age, physical or mental disability, irresponsible attitude towards the job and inadequate training.

Unemployment in Nigeria is also caused by structural unemployment which is caused by the shift in the county’s economy causing a mismatch between the skills required by employers and the skill proposed by employees. Cyclical unemployment also led to people not being employed because it is as a result of decrease in the demands for goods and services which often caused by the economy recession that forces companies to terminate a number of workers in order to reduce the costs.

The unemployment rate in Nigeria are caused mainly by the high and rapid growth in population, this is so because there have being an increase in the growth of the labor forces alongside with the inadequate supply of jobs. This rapid growth in population are coupled with rural urban migration which has led to the increase in cities thereby raising the level of unemployment.

Another key issue is poor leadership where by the government have failed to perform their constitutional duties which has resulted to the high level of unemployment. Most youth are graduates but because Nigeria lack quality education most employers now believe that Nigerian graduates are unemployable. The result of the educational program which usually include theories and lack of practical use of knowledge has led to unemployment because most tertiary educational courses lack entrepreneurial training.

Recession is another aspect that has led to unemployment in Nigerian due to the worsened decline in the country’s economy. A lot of people have been laid of work. While new jobs were not created and most companies laid of employees because they can’t afford a lot of workers and cause of this has made people became unemployed. The increasing rate of unemployment Nigeria has led to the adverse effects on both the economy and the society and such consequences are reduction in the output of goods and services, increased rural urban migration, high level of poverty, increase in the number of dependent people and high rate of crimes.

To overcome the crisis of unemployment in Nigeria, government must be effective in performing their duties, industrial friendly environment such as government should consider each sector of the economy and provide the necessary infrastructure and industrial friendly environment. Nigerians also needs to play their part in reducing the level of unemployment in the country by changing our attitude to the future of the country during the election and also understand our responsibilities. Unemployment can be reduced if only we take the right decisions.

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