CHAPR ONE
INTRODUCTION
1.1
Background to the Study
In the recent past centuries, Benue
state was created in February 1976, when Benue-Plateau State was separated into
Benue and Plateau states by the Murtala-Obasanjo administration. As time pass
by, and as the population increase they was a need to create more Local
Governments which brought it to 23 Local Government present in Benue State.
Benue state is
acclaimed to be the nation’s food basket because of its rich and diverse
agricultural endowments which include yam, rice, beans, cassava, potatoes,
soybeans, sorghum, millet and coco yam. Yet, with a very high rate of
unemployment.
The
state produces over 70% of Nigeria's Soya-beans and is home to one of the
longest river systems in the country - River Benue, which has the potential for
viable fishing and tourism industries complete with festivals similar to the
one in Argungu. The river has the potential to generate electricity, to support
dry season farming through irrigation and improved transportation through
inland waterways. There are also proven reserves of solid minerals like
Limestone, Gypsum, Anhydride, Kaolin, Salt, Lead and Zinc, Clay, Coal, Calcite,
Gemstones and Magnetite. The Benue Basin has proven quantities of natural gas
and there is the likelihood of crude oil as well. The state has many tourism
assets like Ushongo Hills, Ikwe Holiday Resort, Enemabia Warm Springs, Dajo
Pottery,mTiv Anger Weavers and many traditional festivals. The traditional
music and dances of the state attract thousands of Nigerians and foreigners,
with potentials for significant development.
It
is in no doubt that despite all the available resource embedded in the state,
the rate of unemployment is ragging the indigenes of the State. This is one of the
driving forces behind the prevailing crime rate in the state. The youths are
educated in diverse areas of discipline but have not job that would have keep
them busy and not thinking of criminal activities such as cultism, arm robbery,
rigging of election etc. In the quest for survival, the youth engage them self
in alcoholism, smoking and drugs. According to JOHN O. AIYEDOGBON (2012) A high level unemployment is one of the
critical socio-economic problems facing Benue State. While the labour force
grows, with an increasing proportion of youth, employment growth is inadequate
to absorb labour market entrants. As a result, youth are especially affected by
unemployment. Moreover, young people are more likely to be employed in jobs of
low quality, underemployed, working long hours for low wages, engaged in
dangerous work or receive only short term and/or informal employment
arrangements.
Unemployment and poverty are so inter-related
that one can easily confuse one for the other. Although, it is possible for one
to be employed and still poor, this is likely to be a case of underemployment.
Thus, by unemployment, it includes those underemployed. Unemployment and
underemployment reflect the failure to make use of an important factor of
production, labour, for fostering economic growth in Benue State. Low returns
to labour as well as high unemployment indicates poverty. Poverty makes it
difficult to make investments in education and health that would increase a
person‘s productivity. Unemployment in
Benue State is defined as the proportion of labour force that was available for
work but did not get work to engage themselves. With a high portion of
unemployed youth in Benue State, crime will becomes the other of the day as the
youth are left jobless. Crime is said to be any unlawful activities that an
individual engage himself toward the destruction of properties and distortion
of people peace.
According
to the NBS poverty profile 2012 based on data up to 2010, of the population of
the North Central zone, 61.9% is relatively poor, 57.4% is absolutely poor,
38.6% is food poor - an irony indeed for a zone with such generous agricultural
endowments. Benue’s poverty incidence is high at 36%, which means that more
than one out of every three persons is poor: as opposed to one in seven for
Lagos, and more than half - 58% in Yobe state. Benue’s unemployed population is
a whopping 25.4 % or more than one in every four working age person is
unemployed, as opposed to neighboring Plateau’s 14% and FCT’s 13%, and above
the national average of 21.1%. Benue States has one of the highest incidences
of HIV infections in the country, accounting for about one out of every eight
infections nationally.
With
the high rate of poverty brought about as a result of unemployment, The Bureau
of statistics rank Benue as the 8th poorest state in Nigeria, with some of the
highest unemployment rates. This rate has increase
since then with the relative increase in the rate of HIV/AIDS in Benue State.
Since Benue State is ranked one of the highest with HIV/AIDS, most companies
that use HIV/AIDS test as a prerequisite for employment found most Benue
indigence unqualified for the available positions. This has created impact of
unemployment on crime in Benue State metropolis.
There
is no precise definition of unemployment in the economic literature. To the
layman, unemployment means a state of joblessness. Unemployment could be
defined as the percentage out of the population of the labour force that is
without job but is able and willing to work. According to Briggs (1973),
unemployment is defined as the difference between the amount of labour employed
at current wage levels and working conditions and the amount of labour not
hired at these levels. However, Gbosi (1997), has defined unemployment as a
situation in which people who are willing to work at the prevailing wage rate
are unable to find jobs. Here emphasis is placed on willingness. Therefore,
anybody who is not actively seeking paid employment should not be counted as part
of the unemployed labour force. If we do so, we may be overestimating the
official rate of unemployment. Within the Nigerian context, unemployment rate
is defined as the percentage of persons among the labour force (15 – 65 years)
excluding students and those medically unfit, available for work but did not
work (Central Bank of Nigeria, 1993).
Prior
observations have shown that that, they is a very high impact of unemployment
on crime in Benue State metropolis. This is one of the socio vices that lead to
un-rest and post security challenges in the state. This need not be over emphasis
as the fact shows that Benue State is a civil service state with a very high rate
of employment.
1.2
Statement of the Problem
One of the major challenges facing developing
countries is that of unemployment relating to crime in Benue State.
The
unemployment situation resulting to crime in Benue State has become critical
and labour absorption problematic. The problem has increasingly come to be
recognized as one of the serious socio-economic problems currently confronting
Benue State economy. However, statistics showed that Benue State, compared to
other State has the largest segment of youth unemployment. Previous research on the issue of
unemployment, we investigated the determinants of unemployment in Benue State.
The study discovered that much of the ‘open’ unemployment observed in Benue
State metropolis on crime is due to structural factors such as the nature of
the educational system and its interface with the labor market (i.e., the
mismatch problem), technological change, permanent shifts in the demand for goods
and services and the skill content of the labor force. Cyclical factors such as
the fluctuations in aggregate local and foreign demand for goods and services
and institutional factors such as the presence of strong labor unions and labor
legislation also determine the underlying high rate of unemployment rate. In
addition to open unemployment, there is evidence of a high level of ‘disguised
unemployment’ in the form of ‘discouraged workers’ who are not in employment
and not actively looking for work, even though they would like to work. The
high rates of ‘open’ and ‘disguised’ unemployment in Benue State on crime represent a serious waste of human resources,
the explanation for poverty traps, high level of income inequality and slow
growth of gross domestic output and therefore becomes a problem which requires
thorough examination. In other words, the extent, the dimension, the
persistence of the unemployment crises and its macroeconomic implications call
for further research in the area.
The
persistently high unemployment rate is a cause of concern to Congress for a
variety of reasons.
1.3. Objective of the Study
It
is presume that unemployment have impacted so much on crime in Benue State
Metropolis. Researchers in this area have shown that unemployment and crime
have impacted on Benue State Metropolis. The main objective is to access the
impact of unemployment on crime in Benue State metropolis.
The
study is specific at achieving the following objectives:
i.
Examine
impact of unemployment on crime in Benue State Metropolis.
ii.
Determine
whether or not unemployment has contributed to increase in crime in Benue State
metropolis.
iii.
Examine
and investigate the factors that are responsible for the state of unemployment
on crime in Benue State metropolis.
1.4.
Research Question
Has
unemployment impacted on crime in Benue State metropolis?
Has
unemployment contributed towards the increase in crime in Benue State
metropolis?
Are
they factors responsible for the level of unemployment on crime in Benue State
metropolis?
1.5 Research Hypothesis
In quest for the impact of unemployment on crime in
Benue State metropolis, the following hypothesis will be tasted using
appropriate statistical, techniques.
Ho: unemployment
has not impacted on crime in Benue State metropolis.
H1: Unemployment has impacted on crime in Benue State
metropolis.
1.6 Significance of the Study
This
dissertation is justified because, it will first of all contribute to the
existing literature on the impact of unemployment on crime in Benue State
metropolis.
It will
serve as a guide for government and security agencies towards finding a lasting
solution on the impact of unemployment on crime in Benue State metropolis. It
will also serve as a reference to do more research in this area of study.
1.7 Scope of the Study
our attention will be focused on the three (3) major
towns in Benue State which include Makurdi, Gboko and Otukpo but specifically
aimed at ascertaining the extent to which unemployment have impacted on crime
on Benue State metropolis.
1.8 Limitation of the Study
The
impact of unemployment on crime is a national problem and multidimensional, but
due to time and resource constraint, the study will be narrowed to three major towns
in Benue State.
CHAPTER TWO
LITERATURE REVIEW
2.1
Theoretical Framework
Generally,
unemployment constitutes a part of the overall crime in Benue State Metropolis.
Hence, the theory of unemployment is derived from a general theory of
unemployment on crime. However, due strategies are character of unemployment,
specific programmes and strategies are usually designed to address the problem
of unemployment on crimes.
The
concept of unemployment need not be over emphasis as it a major contributor to
crime and national security in Benue State. Aiyedogbon O.John (2012), defined
as the proportion of labour force that was available for work but did not work
in the week preceding the survey period for at least 39 hours. The stress is on
how to reduce unemployment that will led to reduction on crime in Benue State.
But the famous food basket of the nation that is suppose to provide jobs for
its youths through the available agricultural products has turn a place of
joblessness.
If
Benue state pursue and deal with the issue of unemployment and crime, the state
will be among the top performing economy in the country and invariably become attractive
to foreign investors. Thus the overall emphasis depend on the population of
Benue State. The increasing population is furthering increasing the rate on
unemployment in the state, there by impacting negatively on the crime rate as
the people strive to survive. Benue State have tried in some ways towards
creating enabling environment where the youth could find them selves a means of
livelihood in form of self employment. Among others includes the following:
i.
The
training and giving of grants to youth to start up business
ii.
The
introduction of taxi as a means of curbing unemployment rate.
iii.
The
introduction of tax board (BIRS)
iv.
The
rehabilitation of fruit juice industry to create job for the youth
The programmes so far cannot cover a wider segment of
the Benue population. The programmes are not set up with the intention of
covering the entire population of Benue State but just a few related to the
ruling power.
The
ideological conception of the impact of unemployment on crime fits the
theoretical framework developed by World Bank, (1998:63)
as contained in the International Labour Organization (ILO) “defines the
unemployed as numbers of the economically active population who are without
work but available for and seeking work, including people who have lost their
jobs and those who have voluntarily left work . Examples include housewives,
full time students, invalids, those below the legal age for work, old and
retired persons”. However, the application of this
definition across states has been faulted, especially for the purpose of
comparison and policy formulation, as states characteristics are not the same
in their commitment to resolving unemployment problems (Akintoye, 2008).
Example is Imo state with a relative low level of unemployment with less crime
rate as compare with Benue State. According to Douglason and Gbosi, (2006). The
availability of housewives who possess the ability, skill and willingness to
work, the definition of the age bracket all stand as limitations to the
definition by ILO. The unemployment rate
is a percentage of the total number of persons available for employment at any
time. This research will focus on the impact of unemployment on crime on Benue
State. Unemployment has been categorized as one of the serious impediments to growth
and social progress. Raheem, (1993). State that, Apart from representing a
colossal waste of a Benue State manpower resources, it generates welfare loss
in terms of lower output thereby leading to lower income and well-being. Unemployment
is a very serious issue in Africa (Rama, 1998) and particularly in Nigeria
(Umo, 1996). The need to avert the negative effects of unemployment on
poverty has made the tackling of unemployment problems to feature very
prominently in the development objectives of many developing states like Benue
State.
According
to Briggs (1973), unemployment is defined as the difference between the number
of labour employed at present wage levels and working conditions and the amount
of labour not hired at these levels. However, Gbosi (1997), has defined
unemployment as a situation in which people who are willing to work at the
available wage rate are unable to find jobs. Here emphasis is placed on
willingness of the people. Therefore, people who are not actively seeking paid
employment should not be counted as part of the unemployed labour force. If we
do so, we may be overestimating the official rate of unemployment. Within the
Nigerian context, unemployment rate is defined as the percentage of persons
among the labour force (15 – 65 years) excluding students and those medically
unfit, available for work but did not work (Central Bank of Nigeria, 1993).
Today,
unemployment has been identified as one of Benue State major socio-economic
problems. In Benue State, as in many other developing States, unemployment
figures put forward by government officials are downwardly biased due to
political and selfish reasons. If the official unemployment rate is accepted,
the problem of underemployment still persists in many sectors of the economy.
According to Ojo (1997), underemployment simply refers to underutilized workers
whose productive capacity is below the reasonable value and potential.
Specifically, it is a measure of the degree in which people’s gainful
activities fail to make the maximum use of their productive capacity.
Unemployment also refers to less than full employment of the labour force. It
also means employment less than full time or inadequate employment in various
sectors of an economy. The problem of underemployment is an extension of unemployment.
2.2 Literature Review
The quest for the impact of
unemployment on crime in Benue State metropolis has been preoccupation of both
academic and policy makers. In this
section therefore, an attempt is made to review, explain, analyze and interpret
the various works written by the aforementioned classes of the people in
respect of our subject of study.
Various findings were made based on the research methodology used, the
population, sample size and the constraint of carrying out the research.
According
to TAIRU BELLO (2003). Unemployment
refers to the duration an individual state idle without been productive over a
given period of time. His research Having diagnosed the nature of this
episode in this sub - region, the study unfolds a number of factors that
account for this phenomenon and of course the great threat it poses to the
economies involved. An assessment of the past and the present anti – unemployment
policy measures in Nigeria was made and the results show that a number of
economic and non – economic factors inhibit their performance. In view of this,
the paper offered some policy recommendations of which the need for sustainable
economic growth that can be achieved through the institutionalization of true
federalism and resource ownership, the restructuring of the educational system
and the provision of enabling environment for investment friendliness were
given the topmost priority.
Adawo
et al (2012). Research into the unresolvable unemployment in Nigeria. He state
that unemployment in Nigeria is alarming. Statistical tools were used to measure
the level of unemployment which measurement by statistical authorities does not
pose red alert. It has been discovered that the observed situation of
unemployment on crime is more serious than what official statistics want us to
believe. The causes of unemployment in Nigeria include poor infrastructure,
insecurity and non-diversification of the economy and poor educational system
that does not readily produce employable graduates. Among other things he
recommended that governments at all levels should partner with the private
sector and diversify the economy in order to create jobs.
In the words of Adebayo (1999) and Egbuna, (2001)
unemployment leads to psychological problems of frustration, depression,
hostility and criminal behaviors. He tries to view people ways of reasoning as
regarding their standard of living. As the cost of living is high and the
standard of living is low, for the sake of survival people engage in crimes due
to unemployment. In corroborating this
opinion, Echebiri (2005) stressed that youth unemployment primarily encourages
the development of street youths and area boys who were denied of legitimate
means of livelihood to grow up in a culture that encourages criminal behaviors.
Crime resulting from unemployment can be limited if the youths of Benue state
are giving jobs or avenues is been created for them to have some thing doing.
This will increase the revenue of the state and increase the economic growth.
According to Chigunta,
(2002). Unemployed youths survive by engaging in various
activities such as petty trading, casual work, borrowing, stealing, pick
pocketing, prostitution, touting and other illegal activities. Some have become
drunkards
and others are on drugs such as cocaine and Indian-hemp. Bennel (2000) in line
with Chigunta, (2002). argued that urban society is becoming increasingly
criminalized, especially with the proliferation of youth gangs. Several studies
including Igbinovia, (1988) have shown that majority of prison inmates are
youth aged 30 years and below who have no jobs. Also, delinquency, crime and
drug
abuse are on the increase among youths of Benue state as a result of the
unemployment.
Akinboyo (1987); and Raheem (1993). Unemployment has
also been categorized as one of the serious impediments to economic growth and progress.
Apart from primarily encouraging the development of street youths and area boys
who were denied of legitimate means of livelihood to grow up in a culture that
encourages criminal behaviors; it represents a colossal waste of a country's
manpower resources, and generates welfare loss in terms of lower output thereby
leading to lower income and poor well-being. Vandemoortele,(1991), Rama, (1998)
Oladeji, (1994) and Umo (1996) found that unemployment has serious negative
implications on the economies of Africa, Nigeria and Benue in particularly. He see
growth rate of output is a function of the growth rate of unemployment.
There has been so many empirical studies
regarding the relationship between
unemployment and crime in both
developing and developed economies. Basu et. al.,(2006) and others,
finds that there is a negative correlation of employment and productivity
growth on employment via hours worked by using a VAR methodology. His research
was aimed to focus on the nexus of productivity growth and unemployment as it
may be. In the same light, Gordon (1997) in his study pinpointed that there is
a link between productivity and unemployment which presumes a time frame
especially when it is looked at from the long run perspective. This may trigger
crime if the level of unemployment is not dealt with over a long run.
Sequel to the above, Tobin (1993) state
that there is a short run technology shocks which may induce a negative effect
on employment and positive effect on unemployment which was addressed by
Francis and Ramey (2005). Despite the foregoing, it would not be out of context
for one to agree that productivity shocks may lead to a persistent employment
effect thereby reducing unemployment in the long run there by reducing crime.
According Adam (2002; Lee, 2000; Schnabel, 2002) a
drop in the unemployment rate is expectedly required to trigger an increase in
the labour participation rate, via hours worked and productivity thereby
resulting to an increase in output at large there by cubing crime rate.
On the contrary, Uhlig (2006) pointed out that all
the correlation between productivity growth and unemployment are positive, less
volatile and more persistent such that this correlation varies with the span of
time under consideration. Thereby, buttressing that technical progress and
growth in gross domestic production (GDP) are certainly not causing unemployment
and over most periods creates and kept employment. Coher, Dickers and Pogen (2001) look at it
from a different direction, suggest that the new economy features production
processes that put a greater emphasis on general rather than specific skills
which as a result make workers to become more interchangeable in order to
enhance easy to match workers and jobs which in turn reduce unemployment that
may lead to crime. In the same vein, Grubb, Jackman and Layard (1982) and Braun
(1984) Gives a vivid explanation that the link between unemployment and
productivity based on what he describe as “wage aspirations” which adjust
slowly to shift in productivity growth. Though, the concept of wage aspirations
is a departure from the neoclassical theory of the labour market, but it builds
on research by psychologists and industries relations specialists. However,
this form a basis for which the level of unemployment can be tackled there by
reducing the crime rate to the barest minimum.
2.3 Empirical Review
As a matter of fact, many researchers
have attempted to investigate the relatinship between unemployment and crime in
both developing and developed economies. For instance, Amassoma,
Ditimi et al (2013) view unemployment as a uncontrollable increase in the population
of the people with less jobs opportunity over a long period of time. He tries to examined the
relationship between unemployment rate and productivity using a period of 1986
to 2010. His study utilized co-integration and error correction model approach.
Although the unit root tests showed that the variables were integrated of
different orders, the Johansen co-integration result showed that the variables
were co-integrated. The regression estimate based on the short run and long run
models showed that unemployment rate has an insignificant influence on
productivity growth over the study period. Based on his findings, he
recommended that government need to take
urgent steps against the rising unemployment rate, because unemployment is a
major impediment to social progress and results in waste of trained manpower as
well increase the crime rate.
Bakare A. S (2012), View unemployment as a
transition problem caused by some elite who do not have the masses at heart.
Unemployment on crime is one of the most pressing challenges facing Benue State
and policy makers. He however examined the implication of unemployment crisis on economic growth. Standard
econometric method, Ordinary Least Square multiple regression, (OLS) to determine
the relationship between urban unemployment crisis and economic growth. The
results of his finding show that the past values of unemployment crisis could
be used to predict the future behaviour of economic growth. He suggested the
need for the government to embark on direct measures capable of creating jobs
through industrialization and mechanization of agriculture. It also recommended
that programmes of integrated vocational training and re-orientation of
economic activity towards self employment and self-reliance should be encouraged
in order to minimize the unemployment crisis.
Aiyedogbon
O. John (2012) in the poverty and youth Unemployment
in Nigeria using poverty as a function of unemployment, agricultural, manufacturing and
services contributions to real GDP, population and inflation rate in which the
growth rate of the variables were modeled. “The results of the study showed
that unemployment, agricultural and services contributions to real GDP as well
as population have positive determining influence on poverty level in Nigeria
with only agricultural sector statistically insignificant. On the other hand,
manufacturing sector contribution to real GDP and inflation rate exhibited
negative relationship on poverty level in Nigeria with only manufacturing
sector appearing significant. The study recommended among other things, that
holistic effort should be made by governments at all levels to create jobs and
arrest unemployment”.
Muhammad, et al., (2011) research into the role of unemployment
on the making of the Nigerian Gross Domestic Product (GDP) for a period of nine
years (2000 - 2008). His data was analyzed using regression analysis, findings
showed that unemployment has enormous effects on crime (over 65 percent) on the
making of the Nigerian GDP and there exist an inverse relationship between the
model (unemployment) and the GDP - increase in the model leads to decrease on
the GDP and vice versa.
Bakare (2010) examines the determinants of the urban
unemployment in Nigeria. Using the level of unemployment and demand for labour,
supply of labour, population, inflation, capacity utilization, gross capital
formation and nominal wage rate as the variables. “Using time series secondary
data and parsimonious error correction mechanism, the study found that the
rising nominal wages and the accelerated growth of population which affected
the supply side through a high and rapid increase in labour force relative to
the absorptive capacity of the economy appear to be the main determinant of high
unemployment in Nigeria”.
Ibrahim and Umar, (2008) assess the determinants of
poverty as well the poverty coping strategies among farming households in
Nasarawa State, Nigeria. The study used simple random sampling to select 150
farming households and used Costs of Calorie method and Discriminant Analysis
to determine the incidence of poverty as well as its determinants respectively.
The sampled households was found to be high and the major determinants of
poverty include household size, number of income sources of the household head,
number of household members employed outside agriculture and the number of
literate adult males and females in the household. “The major poverty coping
strategies include skipping of meals, reduction in the quantity of meals served
and engaging in wage labour. The study recommends that the farming households
should be effectively involved in the formulation of strategies for imparting
knowledge on family planning to the farming households”.
Sanda (2006) uses a sample of 360 firms in Kano to
examine whether or not, in comparison to large firms, small firms are
relatively better at creation of employment opportunities. The results were
positive in that small firms were found to be relatively better in terms of
employment opportunities, and the conclusion they derived was that a policy
that gives special preference to small firms is justified.
2.4 TYPES OF UNEMPLOYMENT
The main aim in this section is to
review the various types of unemployment that that could be leading to crime in
both developed and developing economies. Thus, in order to establish the type
of unemployment that exists in an economy, economists have classified
unemployment as “seasonal”, “cyclical” or “technological” to know how they have
impacted on the lives of the people. Each types of unemployment is discussed below.
i.
Seasonal Unemployment
Seasonal unemployment is a type of unemployment that occurs as a
result of seasonal fluctuations in the economy. According Elrenburg and Smith
(1982) observed, the demand for agricultural workers usually declines after the
planting season and remains low until the harvesting season. In the same vein,
the demand for construction workers usually falls during the rainy season and
picks up during the dry season. For example, the author made a trip to Spibat
Nigeria Limited, a major French construction company that built the second Port
Harcourt Refinery at Alesa Eleme, near Port Harcourt in July 1987. As at the
time he made the trip most of the construction workers were laid off. Reason
been that, it usually rains heavily in the month of July in Nigeria. But when
another trip was made to the company in December of the same year, most of the
retrenched workers have been called back. Therefore, seasonal unemployment does
not pose a serious threat to the economy but could lead to crime as the period
for which these workers have not jobs.
ii.
Frictional Unemployment
Frictional unemployment is that type of unemployment which occurs
when workers spend time searching for new jobs without getting it. For example,
a 26 worker
in Enugu may leave his present job to Makurdi with the expectation of getting a
higher paid job. Unfortunately, when he got to Makurdi, he could not find a
job. During this period without a job, he is being described by labour
economists as a frictionally unemployed worker who is prone to crime. Factors that
could be responsible for frictional unemployment maybe. First, there is
imperfect flow of information in the labour market. This is because the labour
market is not dynamic as the neo-classical economists contended in the past.
Second, it usually takes a longer time for unemployed workers to get in touch
with potential employers who may have available job openings in Benue State.
Even though the size of the labour market is constant, at every point in time,
there are new entrants in the labour market daily. Some of those workers may be
searching for employment, while other employed or unemployed individuals will
be leaving the labour force. This is more difficult in Benue situation because
it is a civil service state. Therefore, one can safely say that the level of
frictional unemployment in any Benue State may be determined by the flows of
individuals into and out of the labour market and the speed with which these
unemployed individuals search for and secure jobs (Gbosi, 1998).
iii.
Structural Unemployment
Structural
unemployment occurs when there are some structural changes in the economy such
as the band of motor cycle(Okada),Laying off of civil servants. Such structural
changes may take the form of a decrease in demand for certain skills or a
change in technology of a certain industry or even political incline in nature.
Some workers who are structurally unemployed do not have jobs because of lack
of industries, or the industry in which they would have loved to work may be
decreasing output. Structural unemployment may result because there are
individuals who look for jobs in a location that has no industry that can use
their skills or because these individuals possess the wrong skills to offer
available employers (Solomon, 1980). Experience within the recent past in this
country during the past 20 years shows that many teenagers who moved from the
rural areas to the urban areas do not possess the requisite skills. One can
therefore argue that structural unemployment poses a more serious problem than
frictional 17 unemployment that could lead to crime.
Today,
Structural unemployment is a serious threat to the Benue economy. Specifically,
because of the state’s rising rate of unemployment alarming, there has been
mass exodus of people from the rural areas to the urban centres in search of
paid employment. As they do not possess the required skills or related job
experience, they become structurally unemployed. Even those who have the
required skill still find it difficult to secure job in Benue State. A high proportion
of these people are usually teenagers. Presumably, most of these teenagers who
left the rural areas for the urban centres do not possess the skills, which
prospective employers are looking for or it might be they moved to cities that
have no industries that can use their skills.
Consequently,
they become structurally unemployed. Children of peasant farmers also suffer
from structural unemployment not only civil servant children or traders. Many
of these youngsters are from poor parents. As a result, some do not possess an
adequate education which prospective employers may require or do not even have
the relevant work experience. The little job available have been tag with age
limit just to curb out people from getting the job and further creating unemployment.
A good description of structural unemployment has been summarized by Shiller
(1982) in this way.
“Structural
unemployment is analogous to a musical chair’s game which there are enough
chairs for everyone but some of them are too small to sit on”.
iv.
Cyclical Unemployment
This type of
unemployment occurs when there is an inadequate level of aggregate demand. Benue
State is no exceptional as the demand for labour is low with a very high level
aggregate of graduate. In every market economy, producers produce in
anticipation of demand. For example, it does not make sense for a shoe
manufacturer to produce 1,000 pairs of shoes per week when he knows that the
demand for his product is not effective. How inadequacy in the level of
aggregate demand leads to unemployment is illustrated below
Shift
in Aggregate Demand Function.
P AS
A
P0
P1
AD0
AD1
y
Y1 y0
(Output,y)
In
the above graph, AD represents aggregate demand while AS is aggregate supply. P
is the general Price level, while Y represents a nation's total output of goods
and services. Assuming that the economy is at full-employment, that is point A,
and eventually a recession occurs as it was the case during the Great
Depression, the economy’s total demand of goods and services will fall from ADo
to AD1. The general price level will fall from Po to P1. The movement of output
from yo to y1 is what is referred to as demand deficient unemployment. This
type of unemployment was what actually worried John Magnard Keynes during his
time. Some economists have argued that another name for deficient demand
unemployment is when there are lack of job vacancies. Therefore, one can argue
that the dramatic increase in the rate of unemployment during the Great
Depression was neither due to frictional unemployment nor structural
unemployment but rather to insufficient aggregate demand (Gbosi, 1998).
v.
Technological Unemployment
This
type of unemployment occurs when people are being replaced with machines. The
argument is that as soon as a country becomes technologically advanced, there
is always the tendency to use more machines in the production of goods and
services. Thus, a worker who operates one machine day after day eventually
becomes specialized in a particular job. There is however, a greater risk of
unemployment in such a situation. This is because the affected worker may find
it difficult to change to something else especially when he is old. Nigeria is
not yet technologically advanced. Therefore, technological unemployment does
not pose a serious threat to our economy.
2.5 CAUSES OF UNEMPLOYMENT
Every
problem have a cause, some of the causes of unemployment have been traced to
the following:
1.
LACK OF CAPITAL :- The less developing countries are
facing the problem of capital shortage. While for the development of any
country, there is a need of a huge amount of capital. When new projects ,
buildings and factories are constructed a large number of people are engaged in
these project. So lack of capital is the major cause of unemployment.
2.
OVER POPULATION :- In the less developing countries the
rate of population growth is 3% per Annam while the natural resources are
limited and they cannot meet the increasing demand of the population.
3.
SEASONAL VARIATIONS :- There are many industries which
produce the goods seasonally like ice factory. These work only month and remain
close in the remaining period. So a large number of people who are engaged with
these industries become unemployed. Due to inventions, new goods are replacing
the old commodities. So the people who are engaged with old industries are
unemployed.
4. LACK OF EFFECTIVE DEMAND :- According to keynes when aggregate supply increases than the aggregate demand unemployment prevails. So he stresses that the rate of consumption may not fall.
4. LACK OF EFFECTIVE DEMAND :- According to keynes when aggregate supply increases than the aggregate demand unemployment prevails. So he stresses that the rate of consumption may not fall.
5.
LACK OF SKILL :- In the less developing countries,
majority the people is uneducated and they have no any skill about any
particular job. So they can not get the job.
6.
POOR PERFORMANCE OF AGRICULTURE SECTOR :- Under developed
countries depends upon the agriculture sector and production of agriculture
depends upon nature. Second problem is this that there is subdivision of land.
Farmers have very small holdings, neither they can sell it nor they can
cultivate it.
7.
TRADE CYCLE :- Some time due to crises unemployment
prevails. Because in the period of depression, prices, profits, production and
rate of employment falls.
2.6 CURE OR REMEDIES TO
UNEMPLOYMENT IN BENUE STATE
It is one thing to diagnose a problem, but it is
another thing to provide solution to it. Some of the suggested remedies to the
prevailing effects of unemployment on crime include the following:
1.
INCREASE IN CAPITAL FORMATION:- Government should
establish the labour intensive industries to increase the rate of employment.
2. INCENTIVE FOR PRIVATE SECTOR:- Government should provide the liberal concessions bad tax holidays to the private investors to increase the rate of employment.
3. ESTABLISHMENT OF SMALL SCALE INDUSTRY:- In the rural areas small scale industry should be established to remove the disguised unemployment.
4. TECHNICAL TRAINING CENTERS:- Technical and commercial centers should be established to provide training and skill to the public. It will be very useful in curtailing the unemployment rate in Benue State.
2. INCENTIVE FOR PRIVATE SECTOR:- Government should provide the liberal concessions bad tax holidays to the private investors to increase the rate of employment.
3. ESTABLISHMENT OF SMALL SCALE INDUSTRY:- In the rural areas small scale industry should be established to remove the disguised unemployment.
4. TECHNICAL TRAINING CENTERS:- Technical and commercial centers should be established to provide training and skill to the public. It will be very useful in curtailing the unemployment rate in Benue State.
5.
CONTROL ON POPULATION :- There should be an effective check
on the population growth. Family planning program should be introduced and
population should be reduced according the size of natural resources.
6. INCREASE IN EFFECTIVE DEMAND :- Government should increase the rate of investment by establishing the various industries to increase the rate of employment.
7. EMPLOYMENT EXCHANGE OFFICES :- The offices should be established to provide the proper information's about the employment to the public.
8. MONETARY AND FISCAL POLICY :- Government should frame the above policies in such a manner that maximum chances of employment may be provided to the public.
6. INCREASE IN EFFECTIVE DEMAND :- Government should increase the rate of investment by establishing the various industries to increase the rate of employment.
7. EMPLOYMENT EXCHANGE OFFICES :- The offices should be established to provide the proper information's about the employment to the public.
8. MONETARY AND FISCAL POLICY :- Government should frame the above policies in such a manner that maximum chances of employment may be provided to the public.