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Research Article
Open Access Peer-reviewed

The Effect of Unemployment on Economic Development in Onitsha South LGA, Anambra State

Ezeokafor Uche R. , Frank Nwankwo
Journal of Applied Agricultural Economics and Policy Analysis. 2021, 4(1), 54-62. DOI: 10.12691/jaaepa-4-1-7
Received August 03, 2021; Revised September 05, 2021; Accepted September 15, 2021

Abstract

The study explored the role of entrepreneurship on economic growth in Onitsha South L.G.A. of Anambra State. Specifically, the study ascertained the relationship between the nation’s indigenous technology capabilities through entrepreneurship and economic growth; assessed the relationship between government policies on entrepreneurship and economic growth; identified the possible ways to improve entrepreneurship and economic growth. Survey design method was adopted. The adoption of this design was because the study involved personal facts, beliefs and attitudes of the respondents. There was no accurate enumeration from Anambra State on the number of entrepreneurship enterprises in the State therefore the researcher used convenience-sampling method to select 103 participants that formed the population and sample while Chi-square inferential statistics was adopted as a method of data analysis. The study revealed that greater numbers of male were involved in entrepreneurship business establishment than female in the studied organizations; the highest numbers of the respondents were between the ages of 39-40. Further results shown that there were more WAEC/GCE qualification holders in entrepreneurship business ownership in Onitsha South L.G.A. of Anambra State than any other group; respondents were of the opinion that entrepreneurship enterprises have a vital role in the development of indigenous technology and economic growth in Onitsha South. In addition, government policies have not been favourable in the establishment of entrepreneurship in Onitsha South. The study recommended that government should amend the multiple tax burdens affecting the establishment of entrepreneurship business in order to encourage more people into venturing into it; assist entrepreneurs in fund raising and equally advise them on how to utilize it effectively. In addition, entrepreneurship enterprises should form mergers; by this, their capital would be placed in a better position when dealing with lending institutions.

1. Introduction

One of the pressing challenges facing the Sub -Saharan African economies today is the trend of unemployment that is on the increase over the years. Nigeria as a nation has experienced several forms of economic, political and social unrest. In recent times, unemployment which is caused by individuals and government forces had joined the list of the social evils we experience in Nigeria today 1. The issue of unemployment has become a world-wide phenomenon demanding for increased attention, though the impact is more devastating in developing nation 2. According to 3 Nigeria rate of unemployment stand at 19.7%. 2, 4 identified unemployment as one of the major challenges confronting the Nigeria-economic development. The menace of unemployment in Nigeria both now and in the recent past has been an issue of great concern to the economists, policy makers, economic managers, individuals, government and many others 1. This earliest thinking on economic issues did not fail to give a central point of reflection on the undesirability of unemployment 5.

Unemployment is one of the major challenges facing developed and developing countries. As it is been usually phrased, the phenomenon of graduate unemployment in the developing countries constitute an unusual problems to labour market and the general economy of these countries. In the opinion of 6, the state of unemployment demoralizes and increases the need of those who are able and enthusiastic to work but cannot find jobs. Unemployment is a global phenomenon, but it is more prevalent in most developing countries of the world, with resultant social, economic, political and psychological consequences 7. Nigeria’s current unemployment situation is erratic and fall short of expectations, such that a large percentage of educated, able and qualified citizens cannot secure paid employment 8. This indicates that Nigeria over the years has steadily crumbled from its extremely resilient and esteemed position among developing nations 9.

One of the major concerns of various administrations in Nigeria is the growing rate unemployment in the country and it has consistently form part of the macroeconomic objectives of the government for the past decades 8. Evidently, absence of the necessary framework to enhance employment and productivity level in Nigeria is the sole cause of the retard nature of Nigeria, the acclaimed giant of Africa. The trend and problem of unemployment in Nigeria remains obstinate with a tendency of growing geometrically to alarming rate of 3 million unemployed youth annually 10.

The trend of unemployment in Nigeria has a devastating effect on the youths from an extensive gamut of socioeconomic clusters, both the highly and less educated, even though it has mainly troubled a sizeable portion of youths from less privilege backgrounds 2.

11 noted that the seriousness and nature of unemployment in Nigeria is relatively high when placed on the same pedestal with those of other African countries. According to them, in absolute terms; it is estimated that there are presently about 22 million youths unemployed in Nigeria.

The menace of unemployment is geometrically increasing and the effects falls heavily on the economic development of Nigeria. Unemployment constitutes a serious socio-economic problem in Nigeria and is really a tragic condition that requires urgent and proactive attention. Indeed, it is alarming and worrisome to observe that Nigeria’s graduates who are educated, able and willing to work cannot find a job. The situation is becoming hopeless, as the rate of unemployment keep rising without any proactive attempt to curb the menace 12. A cursory look at the state of the nation, portend more danger with declining likelihoods of young graduates becoming gainfully employed; going with the trend of events in the country, most especially, the falling oil prices, economic recession, insurgence in the Northern parts of the country among other factors. To address this situation, the researchers set out to evaluate the causes, and economic effects of unemployment in Nigeria with particular interest in Onitsha South Local Government Area (LGA) of Anambra State. The broad objective of this study was to appraise the economic effect of unemployment on economic development in Onitsha South LGA of Anambra State, Nigeria. While specific objectives were to; determine the causes of unemployment on the economic development of the study area; examine the effects of government unemployment programmes on economic development; and to explore the socio economic effects of unemployment on economic development of Onitsha South LGA, Nigeria.

1.1. Hypotheses

H01: The causes of unemployment are not significant on economic development of Onitsha South Local Government Area.

H02: The effects of government programme on unemployment are not significant on economic development of Onitsha South Local Government Area.

H03: The socio-economic effects of unemployment are not significant on economic development of Onitsha South Local Government area.

2. Conceptual Framework

2.1. Unemployment

In general sense of the term, unemployment is a situation in which those who are able and willing to work at the prevailing wage rate do not find job. Unemployment is defined as the gap between the potential full employment and the number of employed persons. 13 defined unemployment as the difference between the amount of labour at current wage rate and working conditions and the amount of labour not hired at these levels. However, 11 defined unemployment as a situation in which people who are willing to work at the prevailing wage rate are unable to find jobs. The unemployment rate is the number of an economically active population who are without work but available for and seeking for work, including people who have lost their jobs and those who have voluntarily left work (World Bank in 7. Nicholas in 5, indicated that, a person is unemployed if he or she is eligible for work but does not have a job. Volkova in 12 maintained that an unemployment situation is in other words called mass-unemployment when the number of qualified manpower who are unemployed is considerably enough or outnumber that of those in gainful employment 4. 3 defines unemployment as the proportion of the labour force that is available for work but did not work for at least thirty nine (39) hours in the week preceding survey period. Unemployment according to lipsey in 14 brings about economic waste and cause human suffering.

2.2. Economic Development

The term “economic development” has two distinct meanings. Sometimes it refers to the growth of what we call the economy (the physical subsystem of our world made up of the stocks of population and wealth; and the flows of production and consumption). When the economy gets physically bigger we call that economic development, in the sense that it yields a net benefit or a profit. 14 sees economic development as a process by which the productive capacity of an economy increases over a given period, leading to a rise in the level of the national income. When there is economic development, it shows in the form of an increase in income levels, an expansion in the labour force, an increase in the total capital stock of the country and a higher volume of trade and consumption.

2.3. Factors Responsible for Unemployment

The fundamental factor that accounts for the high rate of unemployment in Nigeria includes the following:


2.3.1. Poor Educational Planning

The high rate of unemployment among our youth could be traced to the educational system of Nigeria. This is why none of our Nigerian universities were ranked among the first one thousand best universities in the world. The main point on the above statement is that our educational system does not equip our students with the much needed tools necessary to meet the expected needs of the society. On the other hand, the government is also faulted for the wrong orientation of students and poor salary structure in the public sector that has no special incentives for those who possess such skills. Furthermore, 15 opined that proliferation of higher educational institutions and those seeking higher education for the purpose of white-collar jobs is the main factor responsible for this problem.


2.3.2. Neglect of the Agricultural Sector

The agricultural sector had been the leading provider of employment in Nigeria especially for more than 60% of the Nigerian population. However, in an attempt to discover oil crude, the sound of the music changed to the oil sector where employment capacity is very low to job seekers who have no place in the oil industry. Even with the growth and expansion of the oil industry, the level of unemployment kept on increasing at a geometric rate.


2.3.3. Adoption of Untimely Economic Policy Measure

Another important factor responsible for unemployment situation is the dismissing of small scale and cottage industries which operated in both formal and informal sectors. Within 1986 which ushered in liberalization, deregulation and the devaluation programme of the domestic currency, many of the teething domestic firms collapsed. This ugly situation resulted in the loss of many jobs and thereby rendering many people unemployed. Although, these policies were designed to jump-start the growth of the economy, but given the structure of the Nigerian economy, some of the policy packages became out rightly hostile to the system due to their unseemliness.


2.3.4. Wrong Impression about Technical and Vocational Studies

The wrong impression most people have about technical education also contributed to the high rate of unemployment in Nigeria in recent time. There is an enduring societal biased attitude against technical and vocational education 16. A large number, of job seekers lack practical skills that could enhance self-employment. This is why rather than providing jobs for others, the graduates and unemployed persons keep depending on the government and the non-vibrant private sector for job opportunities.


2.3.5. Poor Enabling Environment

The poor-economic enabling environment that characterizes the economy over the years has continued to pose serious challenges to employment generation in Nigeria. This is coupled with the poor state of security which has continued to hamper investment drives and thereby reducing the prospects of employment generation. Many job seekers who have embarked on self-employment programmes are unable to do so because of the hostile production environment. Others who make attempt are forced to wind up due to absence of infrastructures and the overall heat of the investment environment.

2.4. Impact of Unemployment on the Youths, Society and Economy

Youths are highly affected by unemployment. Young people become the victims of adverse attitudes of people. Their self-esteem is highly affected as they perceive themselves guilty and incapable. Most of them turn to drugs, alcohol and smoking in order to rescue themselves from depression. They lose their relationship and live miserable lives. Many of the unemployed youths go even farther. They become criminals as a result of the frustration and helplessness and do anything in order to live. Many such stories have been reported that some youth indulge in killings and robberies. There is also an increasing trend of “suicides” among the youths mainly due to the unemployment and poor living conditions, especially in the rural areas, where the trend of suicide has been on the increase and taking a serious mode. Youth unemployment badly affects the morale and spirit of other youths in the society who become dejected and disappointed by looking at their peers and elders unemployed, 17.

Youth are the most active and productive members of the society, and if the majority of them are unemployed then it will negatively affect the society. Of course, when young and capable people are roaming around doing nothing useful, it will create irritation and annoyance in the environment. Unemployed youths involved in criminal activities which become a nuisance for the other members of the society. In rural areas, there is the notorious social issue of “kidnapping for ransom”. Youths are also among the professionals who are involved in such activities to kidnap local businessmen and other citizens from the city and the surroundings. Where they cause trouble for the families of the kidnapped by demanding a ransom. So, in this way society loses the great assets of young talents due to the unavailability of job opportunities and conducive working environment, 18.

The socio-economic effects of unemployment in Nigeria, like most other African countries is very severe and threatening to the citizenry and the economy as a whole. The unemployment episode has continued to cause psychological trauma which bothers directly on the unemployed.

2.5. Theoretical Framework
2.5.1. Efficiency Wage Theory

This is a macro-economic approach of explaining unemployment. The rationale behind the theory is that workers differ in quality, not just abilities but in the probability to shrink, in other words, some people are lazier than others and are therefore less likely to work harder. The effort is a function of costly monitoring i.e. if you are being closely monitored than when you are not. Again, an employer cares about the cost of labour (the wage rate). However, the cost is dependent upon the productivity of the workers. Therefore, the objective is one to minimize the wage divided by productivity (wage per unit produced). To do this, you can increase productivity by increasing wages. The reason for this is that as wages increase, the cost shrinking becomes higher because if you are caught, you are fired and lose your wages and the higher the wage is the more you lose by being fired. The importance of this theory to the study is that it is applied in monitoring and evaluating the productivity of workers.

2.6. Empirical Review

In attempt to analyze the relationship between unemployment and economic development, many researchers have applied empirical data to ascertain the nature of the relationship. Tabeuina and Daveria in 13 found empirical support by raising a hypothesis that unemployment has a negative effect on economic development while Layard and Nickell in 18 cannot find the labour market institution that increases unemployment also lower economic growth. It is quite possible that some institutions that affect unemployment also affect economic development and the level of output in Nigeria.

Eze in 4 in his study, examined the effect of unemployment on economy of Nnewi North Local Government Area, Anambra State, Nigeria. Specifically, the study ascertained the causes of unemployment on economy of Nnewi North LGA; identified the effects of government unemployment programmes on the economy of Nnewi North LGA. The study adopted a survey design method using a four-point scale structured questionnaire to collect data from a sample of 372 unemployed residences registered with Poverty Alleviation Programme. The results of his study revealed that the opinion of the respondents on the causes of unemployment were not significant to the causes of unemployment on the economy which included poor management practices; neglect of agricultural sector; poor enabling environment; adaptation of untimely economic reforms and leadership integrity. The effects of government programme on unemployment had shown insignificant empirical link with the effects of government programme on the economy.

Bello in 7 investigates the phenomenon of unemployment in the sub-Saharan Africa with special reference to the Nigerian experience. Having diagnosed the nature of this episode in this sub-Saharan region, the study unfolded a number of factors that account for this phenomenon and of course the great threat they pose to the economy. Assessment of past and the present anti unemployment policy measures in Nigeria was made and the result shows that a number of economic factors inhibit their performance. In Nigeria context, Obadan and Odusola in 5 discovered that unemployment and growth are inversely related. It was also discovered that growth response to unemployment varied among sectors of the economy. For example employers in industries sector use less labour to accomplish high volume of production thereby leading to unemployment of workers, the researcher analyzed the casual link between unemployment and productivity in different sectors of Nigerian economy except service sectors.

In another development, Maria in 19 determine the relationship between unemployment and economic growth in Peru and Lima for the period of 1992 to 2012 using Ordinary Least Square (OLS) techniques. The results confirmed a negative relationship between unemployment and economic growth in both cases. Qazi in 20 got negative relationship between unemployment and economic growth of Pakistan. The result confirmed with Okun law, which states that if unemployment moves above from normal point by one percent, GDP growth falls by two percent and vice-versa. It is estimated that real GDP and unemployment has direct relationship. The range of the study covers 1980 to 2008. Econometric models were used to ascertain the relationship between unemployment and economic growth. Anyadike, Emeh and Ukah in 21, took a study on Nigeria’s growing unemployment situation and how it increasingly dwindles the potentials of the country, especially following official figures from the Bureau of statistics that puts the figure at about 40 million Nigerian youths captured in World Bank statistics in 2009 are unemployed. Having utilized the secondary source data, the paper remained extensively on current articles from ardent scholars on entrepreneurship development and government statistical documentations. The authors concluded that government should make entrepreneurship sellable to the people by inculcating it into the educational curriculum at every state of the educational sector and also utilize a re-modelled NYSC scheme educate the youths more on the importance, essences and need for entrepreneurship development.

Bandal in 22, carried out empirical study on leveraging the relationship between entrepreneurship and job creation. He found out that individual talent, attitude, skills and knowledge along with several contextual variables such as social capital, access to credit, role of government technology and infrastructure, access to information and access to markets work together to drive entrepreneurial activity. In spite of the various studies embarked by erudite scholars on this burning issue at various locations and their possible outcomes, the was no study on the effect of Unemployment on Economic Development of Onitsha South LGA, Anambra State, Nigeria hence the researchers deem it necessary to embark on this study.

3. Materials and Methods

3.1. Research Design

The study used a cross-sectional survey, descriptive research method. Cross-sectional surveys are used to gather information on a population at a single point in time.

3.2. Area of the Study

This study was carried out in Onitsha South local government Area of Anambra state. Onitsha South LGA is one of the 21 LGA’s in Anambra State, Nigeria and it shares boundaries with Delta State and Anambra State. The estimated population of Onitsha South LGA is put at 213,894 inhabitants with the area primarily populated by members of the Igbo ethnic group. The Igbo language is commonly spoken in the LGA while the religion of Christianity is extensively practiced in the area. Notable landmarks in Onitsha south LGA include the Christ the King College and Our Lady’s High School.

Onitsha South LGA has an average temperature of 26 degrees centigrade. The LGA witnesses two major seasons which are the dry and the rainy seasons with the rainy seasons in the LGA usually characterized by heavy and frequent rainfall. The popular River Niger flows close to the LGA with the average humidity level in the area put at an estimated 79 percent.

Trade is an important feature of the economy of Onitsha South LGA with the area hosting a couple of markets such as the popular Ochanja market which attracts thousands of buyers and sellers of a wide variety of commodities. Onitsha south LGA also hosts several financial institutions, hotels, restaurants, relaxation spots, industries, institutions of learning, as well as government owned establishments with all these contributing immensely to the economy of the area and Nigeria at large.

3.3. Sample Size and Sampling Techniques

The survey design method was used in the study. This was found suitable for this study because it is a valuable tool for assessing opinions, belief, attitudes, behavior and trend. The population of the study consists of the entire unemployed residence of Onitsha South LGA registered with poverty alleviation programme. Statistics provided by the office of the Desk Officer, Poverty Alleviation Programme, Onitsha South LGA Anambra State shows that the population consists of 5,250 unemployed residences. Taro Yamane formula was used to determine a finite sample size from the population.

The model is

Where:

n = Desired sample size

N = the finite size of the population

e = Maximum acceptable margin of error as determined by the researchers

1 = A theoretical or statistical constant

For this study the population N = 5,250, e = 5%

n = 372 (Sample size)

3.4. Reliability and Validity of the Instrument

Cronbach’s Alpha reliability test was conducted to ascertain the reliability of the instrument. 20 copies of the instrument were given to unemployed registered members of poverty alleviation programme in Onitsha South LGA using simple random sampling techniques. Using the Cronbach’s Alpha, the summary of the reliability test of EUE-Q is shown in Table 1. All indicators used were greater than 0.5. Hence, reliability values of 0.5 and above were considered acceptable. On the validity of the instrument, questionnaire which is the primary measuring instrument was carefully designed in a way that aided the researchers to elicit opinion, factual and interpretative information pertinent to the objectives of the study.

Content validity of the effect of unemployment on economic development questionnaire (EUED-Q) was established to measure what it is supposed to measure. The EUED-Q was subjected to the scrutiny of two experts in entrepreneurship and business administration from National Open University of Nigeria. The experts judged the comprehensiveness and clarity of the items of EUED-Q where corrections were adequately effected.

3.5. Method of Data Analysis
3.5.1. Research Questions

The research questions and responses were analyzed using descriptive statistics with the formula shown below:

Where:

= Mean

∑ = Summation

F = Frequency

X = Nominal value of options

N = Number of Respondents

Nominal values were assigned to four scaling items thus:

Strongly Agree (SA) = 4

Agree (A)= 3

Disagree (D)= 2

Strongly Disagree (SD = 1

Determination of Cut-Off Point

To determine the mean cut-off point of the study, the normal values were added up and the mean calculated thus:

Decision Rule

The decision point is 2.50, therefore, any item that scored a mean value of 2.50 and above is regarded as agreed or accepted while any item with mean value below 2.50 is regarded as disagreed or rejected.


3.5.2. Testing of Hypotheses

The three research hypotheses set up for the study were tested using Z-test statistical tool at a significant level of 0.05 (two tailed test). If the computed value, of Z-test statistic is between -1.96 to 1.96 of the critical value, we accept null hypothesis, otherwise we reject null hypothesis.

Where p = proportion of positive responses

q = proportion of negative responses

n = sample size

x = value of positive response

To test for significance, the critical value of Z score shows that a, ± ± (0.025) = ± 1.96 is required for significance.

4. Results and Discussion

4.1. Causes of Unemployment on the Economic Development of Onitsha South LGA

In other to identify causes of unemployment on the economic development of Onitsha South LGA. Mean distribution responses to questionnaire items were used to moderate the variables as represented in Table 2;

Table 2 is the mean distribution table moderating the responses to the five items in instrument relating to the causes of unemployment on the economic development of Onitsha South LGA. Since the mean on the scale is 4 +3+2+1= 2.5. Decision rule: Accept a factor if the mean score associated with it is equal to or greater than 2.5 and reject as a factor if the mean score associated with it is less than 2.5. Since the mean score associated with the factors: Poor management practices; Neglect of agricultural sector; Poor enabling environment; Adaptation of untimely economic reforms and Leadership integrity are up to 2.5. The five factors descriptively showed as causes of unemployment on the economic development of Onitsha South LGA.

4.2. Effects of Government Employment Programmes on the Economic Development of Onitsha South LGA

On the effects of government employment programmes on the economic development of Onitsha South LGA. Table 3 shows descriptively the moderation of the variables on the effects of government employment programmes on the economic development in the study area using four-point scales.

Result revealed that the mean score of release of fund from federation account for poverty alleviation programme reduces unemployment recorded the highest mean score (m = 3.26) followed by the mean score of Introduction of National Directorate of Employment Skill Acquisition Programme which helps in reducing unemployment (m=2.6). Thus, it implies that most unemployed registered members of poverty alleviation programme in the study area area agreed that introduction of National Directorate of Employment Skill Acquisition Programme helps in reducing unemployment in the study area. The third item on the variables which emphasized that NEEDS Strategy helps in reducing unemployment was not accepted because it scored 2.28 which is below the 2.5 mean criterion.

4.3. Socio-economic Effects of Unemployment on the Economic Development of Onitsha South LGA

Table 4 below shows descriptive result of moderating responses on socio economic effect of unemployment in the economy of Onitsha South LGA on 4-point scale criterion. The highest mean score recorded 3.0 for the third item, which the participants to the questionnaire agreed that nutritional and health problems were the most socio economic effect of unemployment in the economy of Onitsha South LGA. More so, crime and violence mean score recorded 2.9 for the first item variable which showed the respondents reliance on crime and violence as a socio economic effect of unemployment on the economy of the study area. The second variable with a mean score of 2.7 is indicative of the respondents feeling that frustration and drug addiction are among the socio economic effect of unemployment on economic development in the study area. Political instability as reflected in the fourth variable with mean score 2.43 was not accepted as a socio economic effect of unemployment on economic development in the study area because the mean score is less than 2.5 point scale criterion.

4.4. Economic Effect of Unemployment on Economic Development of Onitsha South LGA of Anambra State
4.4.1. Test of Hypothesis One

H0: There is no significant variation in the opinion of the respondents and the causes of unemployment on the economic development of Onitsha South LGA, Anambra State.

H1: There is significant variation in the opinion of the respondents and the causes of unemployment on the economic development of Onitsha South LGA, Anambra State.

The hypothesis was tested using opinion of respondents on the causes of unemployment on the economic development of Onitsha South LGA, Anambra State in Table 2, where the positive responses = 174 and the negative responses = 51. Using Z-test statistic the formula for Z-test statistic is given as

Where

p = proportion of positive responses

q = proportion of negative responses

n = sample size

x = value of positive response

To test for significance, the critical value of Z score shows that a, ± ± (0.025) = ± 1.96 is required for significance. See normal distribution table.

Decision rule: we consider our null hypothesis if our calculated value fall within ± 1.96

The result shows that at 0.05 (two tail test) of significance, the calculated Z (0.10) is less than the critical Z (1.96) therefore; there was no significant variation between the opinion of respondents and the causes of unemployment on the economic development of Onitsha South Local Government Area, Anambra State.


4.4.2. Test of Hypothesis Two

Hypothesis two sought to determine the effects of government employment programmes on the economic development of Onitsha South LGA, Anambra State.

H0: There is no significant variation in the opinion of the respondents and the effects of government employment programmes on the economic development of Onitsha South LGA, Anambra State.

H1: There is significant variation in the opinion of the respondents and the effects of government employment programmes on the economic development of Onitsha South of Local Government Area, Anambra State.

The hypothesis was tested using opinion of respondents on the effects of government employment programmes on the economic development of Onitsha South Local Government Area, Anambra State in Table 3, where the positive responses = 174 and the negative responses = 51. Using Z-test statistic the formula for Z-test statistic is given as

Where p = proportion of positive responses

q = proportion of negative responses

n = sample size

x = value of positive response

To test for significance, the critical value of Z score shows that a, ± ± (0.025) = ± 1.96 is required for significance. See normal distribution table.

Decision rule: we consider our null hypothesis if our calculated value fall within ± 1.96.

The result shows that at 0.05 (two tail test) of significance, the calculated Z (0.12) is less than the critical Z (1.96) therefore; there was no significant variation between the opinion of respondents and the effects of government employment programmes on the economic development of Onitsha South LGA, Anambra State.


4.4.3. Test of Hypothesis Three

Hypothesis three sought to determine the socio-economic effects of unemployment on the economy of Onitsha South Local Government Area, Anambra State.

H0: There is no significant variation in the opinion of the respondents and the socio-economic effects of unemployment on the economic development of Onitsha South Local Government Area, Anambra State.

H1: There is significant variation in the opinion of the respondents and the socio-economic effects of unemployment on the economic development of Onitsha South Local Government Area, Anambra State.

The hypothesis was tested using opinion of respondents on the socio-economic effects of unemployment on the economic development of Onitsha South Local Government Area, Anambra State in Table 4, where the positive responses = 172 and the negative responses = 53. Using Z-test statistic the formula for Z-test statistic is given as

Where p = proportion of positive responses

q = proportion of negative responses

n = sample size

x = value of positive response.

To test for significance, the critical value of Z score shows that a, ± ± (0.025) = ± 1.96 is required for significance. See normal distribution table.

Decision rule: we consider our null hypothesis if our calculated value fall within ± 1.96.

The result shows that at 0.05 (two tail test) of significance, the calculated Z (0.16) is less than the critical Z (1.96) therefore; there was no significant variation between the opinion of respondents and the effects of socio-economic effects of unemployment on the economic development of Onitsha South LGA, Anambra State.

5. Discussion of Findings

The results of the findings revealed that the opinion of the respondents on the causes of unemployment are not significant to the causes of unemployment on the economic development of Onitsha South LGA. This shows that poor management practices; neglect of agricultural sector; poor enabling environment; adaptation of untimely economic reforms and leadership integrity are not significantly related to the causes of unemployment in Onitsha South LGA. The finding has collaborated with work of 2 that the fundamental factors that account for the high rate of unemployment in Nigeria include; Poor educational planning, neglect of the agricultural sector, Adoption of untimely economic policy measure, wrong impression about technical and vocational studies, as well as poor enabling environment. The results further revealed that the opinion of the respondents on the effects of government programme on unemployment are not significant on the economic development of Onitsha South Local Government Area. The findings of this study collaborate with the work of 2 which stated that several efforts have been taken by both the past and present government at reducing the effects of unemployment in Nigeria and they include; National Directorate of Employment (NDE), and National Economic Employment and Development Strategy (NEEDS). Their programme objectives spanned across youth employment and vocational skills development programme, special public works as well as small scale industries and graduate employment programme. It was also found out that there is no significant relationship between the opinion of the respondents and the socio-economic effects of unemployment on the economic development of Onitsha South Local Government area. The results of interpretation collaborate with the work of Bello in 4 that unemployment has continued to pose many challenges to the survival of the Nigerian nation. Some of these socio-economic effects included; unproductive labour force, crime and violence, drug addiction, low GDP, Psychological effects, family support, effect on health and political instability.

6. Conclusion

The situation of unemployment in Nigeria has been at a alarming proportion which has led to an increase in social vices, brain drain, increases in the level of poverty, terrorism, and weak purchasing power to mention but few concerns. Although, Nigerian government in previous time had put in place programmes which are meant to cob this menace. There are a couple of things which contributed to not yield up to expected results. This includes maladministration, corruption, lack of continuity, poor funding among others. From the findings, the researchers therefore recommended that Government should rejuvenate all the vocational training and institute centre in the country to offer entrepreneurship training. This will go a long way to address reduce youth unemployment. In addition, upon completion of the training programme, government should offer soft loans to the trained youths as take-off capital. Provision of infrastructural facilities and enabling environment. Re-prioritization of Agricultural sector where Government would develop a policy framework that will encourage massive participation of people in agriculture among others.

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[12]  Kayode, A., Samuel, A. & Silas, F.A. The rising rate of unemployment in Nigeria: The socio-economic and political implications. Global Business and Economics Research Journal, 3 (2): 12-32, 2014.
In article      
 
[13]  Byrne, D. & Strobl, E. Defining unemployment in developing countries. Trinidad and Tobago Centre for Research in Economic Development and International Trade, University of Nottingham, (2): 3-44, 2019.
In article      
 
[14]  Adebayo, A. & Ogunrinola, I.O. Contemporary dimensions of unemployment problem in Nigeria: A special challenge under the National Economic Empowerment and Development Strategy. The Nigerian Economic Society, 1(4): 28-52 (2016).
In article      
 
[15]  Goldney, R.D. Unemployment and health: A Reappraisal. International Archives of Occupation and Environment, (70): 145 147, 2017.
In article      View Article  PubMed
 
[16]  Damachi, N.A. Evaluation of Past Policy Measures for Solving Unemployment Problems. Bullion, 25(4): 6-12, 2001.
In article      
 
[17]  Okafor, Emeka, E. Emerging Non-Standard Employment Relations and Implications for Human Resource Management Functions in Nigeria. African Journal of Business Management Vol.6 (26), pp. 7612-7621, 2011.
In article      View Article
 
[18]  Adepegba, A. Police arrest 51 over post-election violence. Retrieved from The Punch Newspaper Online on 20th June, 2016.
In article      
 
[19]  Shadare O.A. & Tunde E.S. Graduate unemployment in Nigeria: Causes, effects and remedies. British Journal of Arts and Social Sciences, 5(2):1-16, 2012.
In article      
 
[20]  Raheem, M.I. Nigeria for Africa: A case for labour export, in Oyejide, T. A. & M.I. Obadan (eds). Applied Economics and Economic Policy-In Honour of Emmanuel C. Edozien, 2013 Ibadan: Ibadan University Press.
In article      
 
[21]  Ifejiofor, O. Causes of graduate unemployment in Nigeria. International Labor Organization, 7(3): 213-229, 2014.
In article      
 
[22]  Okoli, l. D. Family business organization and poverty reduction in Nigeria: A study of selected business organization in Anambra state. A PHD Thesis in the Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria, 2014.
In article      
 
[23]  Cronbach, L.J. Coefficient alpha and the internal structure of tests. Psychometrika, 16 (3) 297-334, 1951.
In article      View Article
 
[24]  Cooper, D.R. & Schindler, P.S. Business Research Methods (11th eds.) 2016. New York: McGraw-Hill/Irwin
In article      
 
[25]  Echebiri, R.N. Characteristics and determinants of urban youth unemployment in Umuahia, Nigeria: Implications for rural development and alternative labour market variables. Journal of Sustainable Development 19 (1): 38-43, 2015.
In article      
 
[26]  Hornby. A.S. Oxford Advanced Learner’s Dictionary of Current English. Oxford: Oxford University Press, 2010.
In article      
 
[27]  Noor, M. & Ghari, O. Relationship between output and unemployment in Malaysia during 1970-2004. European Journal of Social Sciences, 7(2): 145-156, 2007.
In article      
 
[28]  Olaleye, Y.L. Youth empowerment as a strategy for reducing crime in the Society. European Journal of Social Sciences, 15(2): 270-296, 2010.
In article      
 
[29]  Onukwuli, A.G. Reward management and performance in small scale industries in Anambra State Nigeria. Asian Academic Research Journal of Social Sciences and Humanities, 1 (23): 137-146, 2014.
In article      
 
[30]  Udu, E. & Agu, G.A. New System Economics. Onitsha: Africana First Publishers Ltd. 1 (2):112-126, 2005.
In article      
 
[31]  Umaru A. & Zubairu A.A. An empirical analysis of the relationship between unemployment and inflation in Nigeria from 1977-2009. Economics and Finance Review, 1(12): 42-61, 2012.
In article      
 
[32]  Unowa. Youth unemployment and regional insecurity in West Africa. Dakar Senegal: UNOWA Issue paper 2006.
In article      
 
[33]  Yamane, T. Statistics: An Introductory Analysis, 2nd Ed. New York: Harper and Row, 1967.
In article      
 

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Ezeokafor Uche R., Frank Nwankwo. The Effect of Unemployment on Economic Development in Onitsha South LGA, Anambra State. Journal of Applied Agricultural Economics and Policy Analysis. Vol. 4, No. 1, 2021, pp 54-62. http://pubs.sciepub.com/jaaepa/4/1/7
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R., Ezeokafor Uche, and Frank Nwankwo. "The Effect of Unemployment on Economic Development in Onitsha South LGA, Anambra State." Journal of Applied Agricultural Economics and Policy Analysis 4.1 (2021): 54-62.
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R., E. U. , & Nwankwo, F. (2021). The Effect of Unemployment on Economic Development in Onitsha South LGA, Anambra State. Journal of Applied Agricultural Economics and Policy Analysis, 4(1), 54-62.
Chicago Style
R., Ezeokafor Uche, and Frank Nwankwo. "The Effect of Unemployment on Economic Development in Onitsha South LGA, Anambra State." Journal of Applied Agricultural Economics and Policy Analysis 4, no. 1 (2021): 54-62.
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  • Table 1. The Reliability Test for Indicators of Unemployment on the Economic Development of Onitsha South LGA
  • Table 2. Mean Distribution of Responses to Questionnaire Items on the Causes of Unemployment on the Economic Development of Onitsha South LGA
  • Table 3. Mean Distribution of Responses on the Effects of Government Employment Programmes on the Economic Development of Onitsha South LGA
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In article      
 
[8]  Omotosho, J.A. Problems and counselling needs of unemployed youths in Nigeria. The Open Area Studies Journal, 3(2): 12-23, 2019.
In article      
 
[9]  Fofana, N.F. Employment and economic growth in the Cote d'Ivoire: An analysis of structural determinants. African Development Bank Review, 98-112, 2011.
In article      
 
[10]  Adelodun, S. How to be your own boss. Retrieved from Sun News Online on 20th June, 2016
In article      
 
[11]  Omotor, D.G. & Gbosi, A.N. The Dynamics of Productivity and Unemployment Nexus: Implications for Employment Generation in Nigeria. In NES, Employment Generation in Nigeria (pp. 177-197) 2016. Ibadan: Nigerian Economic Society.
In article      
 
[12]  Kayode, A., Samuel, A. & Silas, F.A. The rising rate of unemployment in Nigeria: The socio-economic and political implications. Global Business and Economics Research Journal, 3 (2): 12-32, 2014.
In article      
 
[13]  Byrne, D. & Strobl, E. Defining unemployment in developing countries. Trinidad and Tobago Centre for Research in Economic Development and International Trade, University of Nottingham, (2): 3-44, 2019.
In article      
 
[14]  Adebayo, A. & Ogunrinola, I.O. Contemporary dimensions of unemployment problem in Nigeria: A special challenge under the National Economic Empowerment and Development Strategy. The Nigerian Economic Society, 1(4): 28-52 (2016).
In article      
 
[15]  Goldney, R.D. Unemployment and health: A Reappraisal. International Archives of Occupation and Environment, (70): 145 147, 2017.
In article      View Article  PubMed
 
[16]  Damachi, N.A. Evaluation of Past Policy Measures for Solving Unemployment Problems. Bullion, 25(4): 6-12, 2001.
In article      
 
[17]  Okafor, Emeka, E. Emerging Non-Standard Employment Relations and Implications for Human Resource Management Functions in Nigeria. African Journal of Business Management Vol.6 (26), pp. 7612-7621, 2011.
In article      View Article
 
[18]  Adepegba, A. Police arrest 51 over post-election violence. Retrieved from The Punch Newspaper Online on 20th June, 2016.
In article      
 
[19]  Shadare O.A. & Tunde E.S. Graduate unemployment in Nigeria: Causes, effects and remedies. British Journal of Arts and Social Sciences, 5(2):1-16, 2012.
In article      
 
[20]  Raheem, M.I. Nigeria for Africa: A case for labour export, in Oyejide, T. A. & M.I. Obadan (eds). Applied Economics and Economic Policy-In Honour of Emmanuel C. Edozien, 2013 Ibadan: Ibadan University Press.
In article      
 
[21]  Ifejiofor, O. Causes of graduate unemployment in Nigeria. International Labor Organization, 7(3): 213-229, 2014.
In article      
 
[22]  Okoli, l. D. Family business organization and poverty reduction in Nigeria: A study of selected business organization in Anambra state. A PHD Thesis in the Faculty of Management Sciences, Nnamdi Azikiwe University, Awka, Nigeria, 2014.
In article      
 
[23]  Cronbach, L.J. Coefficient alpha and the internal structure of tests. Psychometrika, 16 (3) 297-334, 1951.
In article      View Article
 
[24]  Cooper, D.R. & Schindler, P.S. Business Research Methods (11th eds.) 2016. New York: McGraw-Hill/Irwin
In article      
 
[25]  Echebiri, R.N. Characteristics and determinants of urban youth unemployment in Umuahia, Nigeria: Implications for rural development and alternative labour market variables. Journal of Sustainable Development 19 (1): 38-43, 2015.
In article      
 
[26]  Hornby. A.S. Oxford Advanced Learner’s Dictionary of Current English. Oxford: Oxford University Press, 2010.
In article      
 
[27]  Noor, M. & Ghari, O. Relationship between output and unemployment in Malaysia during 1970-2004. European Journal of Social Sciences, 7(2): 145-156, 2007.
In article      
 
[28]  Olaleye, Y.L. Youth empowerment as a strategy for reducing crime in the Society. European Journal of Social Sciences, 15(2): 270-296, 2010.
In article      
 
[29]  Onukwuli, A.G. Reward management and performance in small scale industries in Anambra State Nigeria. Asian Academic Research Journal of Social Sciences and Humanities, 1 (23): 137-146, 2014.
In article      
 
[30]  Udu, E. & Agu, G.A. New System Economics. Onitsha: Africana First Publishers Ltd. 1 (2):112-126, 2005.
In article      
 
[31]  Umaru A. & Zubairu A.A. An empirical analysis of the relationship between unemployment and inflation in Nigeria from 1977-2009. Economics and Finance Review, 1(12): 42-61, 2012.
In article      
 
[32]  Unowa. Youth unemployment and regional insecurity in West Africa. Dakar Senegal: UNOWA Issue paper 2006.
In article      
 
[33]  Yamane, T. Statistics: An Introductory Analysis, 2nd Ed. New York: Harper and Row, 1967.
In article