CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Unemployment is an issue that has generated debates from every nook and cranny of the world. Its impact was more, felt during the industrial revolution when the dimension of man power absorption changed towards the consideration of skill as a fundamental pre-requisite. However, over the years, government around the world have been concerned with how the unemployment question could be answered – similarly, the Nigeria economy was characterized by severe unemployment, especially after the civil war which necessitated policy measures aimed at reducing it’s.
Different government since 1970 till date have tried different strategies in order to reduce unemployment, but the result still remain persistent unemployment resulting in a number of social and economic problems like crime, destitution, prostitution, corruption etc associated with it.
Index, unemployment in Nigeria has assumed a frightened proportion. It is even more frightened considering the fact that high rate of unemployment create poverty, misery and threatens social cohesions reduction in the rate of unemployment has thus become a major policy thrust of the government with the assistance of some international agencies such as the international labour organization.
Moreover, since early 1970’s the revenue base of the country has depended largely on the oil sector which has provided over 80% of total government revenue. The growth of resource in the sector private opportunity to initiate huge programme which substantially.
1.2 STATEMENT OF THE PROBLEM
Scrutinizing the time series data on unemployment in Nigeria b/w 1960 and to mind 1980. Nigeria was at a period of economic boom, which means unemployment was something nobody could have dreamt about, but today unemployment has become so severe that nobody likes to embrace it.
However, unemployment in Nigeria is primarily youth unemployment, especially secondary school leaver for instance in 1986, they constituted 65-3 percent of all the employed in Nigeria. The figure for 1987 for this group was 70-7 percent when figures are desegregated by location figures for Urban unemployment were higher for all the years under survey with the exception of 1986. The national figures for unemployment was 6.1 percent in 1986. It tell slightly to 5-3 percent in 1986 for all the year data indicate that unemployment was higher in the urban than within the rural area.
Today, there is a nation wide high rate of unemployment particularly among the youth that are leader of tomorrow unemployment appear to be inherent in the nation economic system, first, because intentionally or unintentionally the policy maker do not resort to measure capable of reducing unemployment to an acceptable level.
Furthermore, tax collected from companies an private individual are misappropriated. The expenditure on capital project are divested to private purses whilst expenditure on personnel emolument are delayed by government officials.
This study is therefore concerned with finding out the effect federal government expenditure and money supply on rate of unemployment. Also, intend to investigate clearly the extent to which these policies have contributed to worsen the problem of unemployment or alleviate it completely.
1.3 OBJECTIVE OF THE STUDY
The objective of the study is to make some reasonably investigations and, then find out some facts paltering to the rate of unemployment and it level of existence in Nigeria.
Hence, the research work will go as far as tracing the root of the problem, ever increasing number of the unemployment rate among Nigerian and the cause of it, mostly especially our youth.
(a) To determine the effect of federal expenditure & money supply on the rate of unemployment in our society.
(b) To ascertain the efforts and inputs of past and present government in the area of skill or rented or vocational educative programme in our school toward solving the problem of unemployment.
(c) To examine the statistical application of the study, that will help to enhance the empirical finding the effect of federal expenditure & money supply.
(d) To determine a suitable solution toward changing and alleviating the problem of unemployment in our society.
1.4 RESEARCH QUESTION
(a) What are the effect of federal expenditure and money supply in changing rate of unemployment in Nigeria?
(b) Does the government make any effort in increasing the education programmes in our school towards changing the rate unemployment?
(c) What are the problems associated in using statistical application.
(d) What are the effect of the policies the government have used to change the rate of unemployment in Nigeria.
(e) What extend have the policies be used.
1.5 RESEARCH HYPOTHESIS.
Unemployment has been characterized as one of the major attributes used to distinguish developing nation such as Nigeria, from most developed nation, such as U.S.A. in fact, the rate at which this phenomenon has been skyrocketing in Nigeria has become much more alarming and beyond expectation.
HYPOTHESIS
Ho: There is no significant relationship between money supply and unemployment.
Hi: There is significant relationship between money supply and employment.
Ho: There is no significant relationship between federal expenditure and unemployment.
Hi: There is significant relation between federal expenditure and unemployment.
Where Ho: Null hypothesis
Hi: Alternative hypothesis