TABLE OF CONTENT
CHAPTER ONE: INTRODUCTION
1.1 Background of study
1.2 Statement of the Problem
1.3 Objectives of the Study
1.4 Research Questions
1.5 Research Hypothesis
1.6 Scope of the Study
1.7 Significance of the Study
1.8 Definitions of Terms
References
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
2.2 Conceptual Framework
2.3 Theoretical Framework
2.4 Empirical Review
CHAPTER THREE: RESEARCH METHODOLOGY
3.1 Introduction
3.2 Research Design
3.3 Population of the Study
3.4 Sampling and Sampling Size
3.5 Data Collection Instruments and Validation
3.6 Techniques of Data Analysis
3.7 Limitations of Methodology
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Introduction
4.2 Presentation and Analysis of Data
4.3 Presentation and Interpretation of Result
4.4 Test of Hypothesis
4.5 Discussion of Major Findings
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary
5.2 Conclusions
- Recommendations
Bibliography
Appendix
CHAPTER ONE
INTRODUCTION
1.1 Background of the study
Unemployment has informed massive movement of people from rural to urban areas, up to outside the country, thereby causing pressure or overstretching available social infrastructural facilities such as housing, road, water, transport, electricity among others and within the immigrants to urban cities (Yan and Shi, 2017). This situation normally has impediment on growth and development of on nations and specifically Nigeria, where many unemployed people roam about the street in search of employment contrarily, educational institutions are graduate more students and hence, doubling increasing the population of unemployment (Akeju and Olanipeun 2014). Okoro (2019) views employment as the central activities in live existence. Stressing that people are employed for many reasons, to earn a living, to provide sense of identity, to provide integration to the society, but when the society fails to provide employment to an individual the live existence is negatively affected. The author observes that unemployment in Africa needs to be addressed from many areas such as construction sector, agriculture, manufacturing and processing sector. Moreover,the total number of people classified as unemployed has increased from 17.6 million in the fourth quarter of 2017 to 20.9 million in the third quarter of 2018 Bureau of Labour Statistics(BLS, 2018).Similarly, Organization for Economic Co-operation and Development (OECD, 2020) identifies unemployment as when persons above a specified age are either in paid employment or self-employment and whereas they are currently available for work during at the particular time. The unemployment rate across Nigeria has been very high since the beginning of this century (Ajaikaya, Jerome, Nahena&Alaba 2016). In fact, within the labor force in the third quarter of 2018, 23.9% of rural and 21.2% of urban dwellers were unemployed (BLS, 2018). This rising state of unemployment in Nigeria is observed by many with its biting presence on an average Nigerian (Akutson, messiah &Araf 2018). As a result, this problem is likely to worsen, given that the meagre number of jobs presently being created is not enough to keep pace with population growth (Bandura&Hammond 2018)
According to the Corporate Finance Institute (CFI, 2020) unemployment is caused by various reasons that come from both the demand side or employer and the supply side, the worker. From the demand side, it may be caused by high interest rates, global recession and financial crisis. From the supply side, frictional unemployment and structural unemployment play a significant role. The problem of unemployment has posed a great challenge to many countries, both developed and developing (Akutson Akutson Seth, Messiah Abaka John and Yakubu Dalhatu Araf 218). In view of this, the present research intends to investigate the effect of unemployment in Nigerias industrial sector
1.2 STATEMENT OF THE PROBLEM
Evidence shows that both unemployment and underemployment are highest among youth between the ages of 15 and 24,( then 25 and 34 National Bureau of statistics (2018). A total of 66.07 percent and 65.81 percent respectively are for the unemployed and underemployed who are majorly youth 13.7 million (NBS, 2016). Again, the higher level of underemployment among those between the ages of 15 and 24 as earlier mentioned can be explained by the fact that most youth within the age range are still receiving some form of education. This high level of underemployment is also usually associated with the seasonality of some industrial sector jobs in which most people are engaged (Sedeke 2019).The structure of the Nigeria economy is typical of a developing country like and other developing nations. The primary sector, in particular, the oil and gas sector dominates gross domestic product accounting for over 95 percent of export earnings and about 85 percent of government revenue between 2011 and 2012.The industrial sector accounts for 6 percent of economic activity while the manufacturing sector contributes only 4 percent to GDP in 2011 the economic transformation agenda, otherwise known as Nigerian Vision 20:2020, sets the direction for the current industrial policy in Nigeria. The industrialization strategy aims at achieving greater global competitiveness in the production of processed and manufactured goods by linking industrial goods with primary sector activity, domestic and foreign trades and services (Adeoti, Adeyinka & Ogundele 2020 while the above study focused on manufacturing sector, this study intend to examines the contribution of the construction sector in combatting unemployment).While Nigeria has made some progress in socio-economic terms in recent years, its human capital development remains weak due to under –investment and the country ranked 152 of 157 countries in the World Bank’s 2018 Human capital index (World Bank Development Report, 2019. (Amri& Perez 2020) citing mordor Intelligence (2020) stated that, the construction industry is anticipated to have a growth of 6% from 2019 to 2024. It is in view of the above that the researcher intend to investigate the effect of unemployment in Nigeria industrial sector.
1.3 OBJECTIVES OF THE STUDY
The study has one objective which is subdivided in specific objective and general objective, the general objective of this study is to examine the effects of unemployment in Nigeria’s industrial sector and the specific objective is to:
- Examine the effects of unemployment on construction industrial sector productivity.
- To ascertain the effects of unemployment on standard of living of citizens.
- To examine the relationship between unemployment and the profitability in industrial sector
- To investigate the role of industrial sector in combatting unemployment in Nigeria.
- To proffer suggestions and recommendations.
- RESEARCH QUESTIONS
The following research questions were formulated by the researcher to aid the completion of the study;
- Does unemployment have effect on industrial sector productivity in Nigeria?
- Does unemployment has any effect on the standard of living of citizen?
- Is there any relationship between unemployment and the profitability in industrial sector?
- What role does industrial sector play in combatting unemployment in Nigeria?
1.5 RESEARCH HYPOTHESIS
The following research hypotheses were formulated by the researcher to aid the completion of the study;
H0:There is no significant relationship between unemployment and the profitability of the industrial sector
H0: Unemployment does not have an effect on industrial sector productivity in Nigeria
1.6 SCOPE OF THE STUDY
The scope of this study is to examine the effect of unemployment on the industrial sector specifically in the construction industry of Nigeria. This study is limited to only Lagos state hence, does cover the entire country. Also, the present study take only cognizance of the construction industry among others in industrial sectors such as (mining, agriculture) within Lagos state, Nigeria as earlier enunciated. During the course of this study, there are some constraints which arise from finance, time and lack of availability of data.
1.7 SIGNIFICANCE OF THE STUDY
It is believed that at the completion of the study, the findings will be of great importance to the national economic planning committee as the study intend to investigate the effect of unemployment on the economic growth of Nigeria with emphasis on construction sector. Of the industrial sector in Nigeria. The study will also be of great importance to researchers who intend to embark on a study in a similar topic as the findings of the study will serve as a reference point for further studies. The study will equally be of great importance to student, teachers, academia, lecturers and the general public as the study will contribute to the pool of existing literature and also contribute to knowledge on the focus area.
- DEFINITION OF TERMS
Industrial sector
The industrial sector of the economy is one that make finished products which can then be utilized viz. construction and manufacturing industry.
Construction sector
The construction industry is divided into two sectors: non-residential, which has three sub-sectors and residential. Each sector has its own merits with a varied and rewarding range of work projects.
Unemployment
Unemployment, according to the OECD, is persons above a specified age not being in paid employment or self-employment but currently available for work during the reference period.
