This study is motivated
by the fact that federal expenditure and money supply as a tool on the rate of
unemployment. But to which extent, these instrument have contributed either to
worsen the problem of unemployment or alleviate it.
To investigate this
problem, two hypotheses were formulated as follows.
Ho: There is no relationship between money
supply and unemployment.
Hi: There is no relationship between federal
expenditure and unemployment.
testing the hypothesis, secondary data was used and analyzed using regression
and correlation analysis as well as student t-test. The following are summary
of the major findings from the analysis carried out in the study.
expenditure and money supply contributed little to the reduction on the rate
unemployment between (1980-2000).
package of National directorate of employment programme conmcerning
encouragement and generation of employment opportunities for most especially
school teachers from secondary school and graduate from higher institution
seems to be less vigorous since 1992 till date.
inability of government of both federal and state levels to lift embargo on
public sector employment from (1994 to August 1999) could be partly responsible
for the high level of graduate unemployment in the Urban areas.
the strength of the findings, the following recommendations were made.
use of these tools (federal expenditure and money supply) need to be reviewed
to enhance their potential for addressing the rate of unemployment.
tools may be used to complement federal expenditure and money supply towards
the alleviation on the rate of unemployment.
tool thrust should be the establishment of most micro-credit scheme to assist
enterprising unemployed people to set on micro business across the country.
is need to build up human capital, this mean improving the knowledge, shall,
capacities and the mental and physical conditions of the masses.
TABLE OF CONTENTS
TABLE OF CONTENT
of the study
of the problem
of the study
of the study
of the study
of basic concepts.
deign and methodology
of data / analytical techniques
and analysis of data
for further research
BACKGROUND OF THE STUDY
is an issue that has generated debates from every nook and cranny of the world.
Its impact was more, felt during the industrial revolution when the dimension
of man power absorption changed towards the consideration of skill as a
fundamental pre-requisite. However, over the years, government around the world
have been concerned with how the unemployment question could be answered –
similarly, the Nigeria economy was characterized by severe unemployment,
especially after the civil war which necessitated policy measures aimed at
government since 1970 till date have tried different strategies in order to
reduce unemployment, but the result still remain persistent unemployment
resulting in a number of social and economic problems like crime, destitution,
prostitution, corruption etc associated
Index, unemployment in Nigeria
has assumed a frightened proportion. It is even more frightened considering the
fact that high rate of unemployment create poverty, misery and threatens social
cohesions reduction in the rate of unemployment has thus become a major policy
thrust of the government with the assistance of some international agencies
such as the international labour organization.
since early 1970’s the revenue base of the country has depended largely on the
oil sector which has provided over 80% of total government revenue. The growth
of resource in the sector private opportunity to initiate huge programme which
STATEMENT OF THE PROBLEM
Scrutinizing the time
series data on unemployment in Nigeria b/w 1960 and to mind 1980. Nigeria was
at a period of economic boom, which means unemployment was something nobody
could have dreamt about, but today unemployment has become so severe that
nobody likes to embrace it.
However, unemployment in
Nigeria is primarily youth unemployment, especially secondary school leaver for
instance in 1986, they constituted 65-3 percent of all the employed in Nigeria.
The figure for 1987 for this group was 70-7 percent when figures are
desegregated by location figures for Urban unemployment were higher for all the
years under survey with the exception of 1986. The national figures for
unemployment was 6.1 percent in 1986. It tell slightly to 5-3 percent in 1986
for all the year data indicate that unemployment was higher in the urban than within
the rural area.
Today, there is a nation
wide high rate of unemployment particularly among the youth that are leader of
tomorrow unemployment appear to be inherent in the nation economic system,
first, because intentionally or unintentionally the policy maker do not resort
to measure capable of reducing unemployment to an acceptable level.
collected from companies an private individual are misappropriated. The
expenditure on capital project are divested to private purses whilst expenditure
on personnel emolument are delayed by government officials.
This study is therefore
concerned with finding out the effect federal government expenditure and money
supply on rate of unemployment. Also, intend to investigate clearly the extent
to which these policies have contributed to worsen the problem of unemployment
or alleviate it completely.
OBJECTIVE OF THE STUDY
objective of the study is to make some reasonably investigations and, then find
out some facts paltering to the rate of unemployment and it level of existence
the research work will go as far as tracing the root of the problem, ever
increasing number of the unemployment rate among Nigerian and the cause of it,
mostly especially our youth.
(a) To determine the effect of federal
expenditure & money supply on the rate of unemployment in our society.
(b) To ascertain the efforts and inputs of
past and present government in the area of skill or rented or vocational
educative programme in our school toward solving the problem of unemployment.
(c) To examine the statistical
application of the study, that will help to enhance the empirical finding the
effect of federal expenditure & money supply.
(d) To determine a suitable solution
toward changing and alleviating the problem of unemployment in our society.
(a) What are the effect of federal
expenditure and money supply in changing rate of unemployment in Nigeria?
(b) Does the government make any effort
in increasing the education programmes in our school towards changing the rate
(c) What are the problems associated in
using statistical application.
(d) What are the effect of the policies
the government have used to change the rate of unemployment in Nigeria.
(e) What extend have the policies be
Unemployment has been
characterized as one of the major attributes used to distinguish developing
nation such as Nigeria, from most developed nation, such as U.S.A. in fact, the
rate at which this phenomenon has been skyrocketing in Nigeria has become much
more alarming and beyond expectation.
is no significant relationship between money supply and unemployment.
is significant relationship between money supply and employment.
is no significant relationship between federal expenditure
is significant relation between federal expenditure and unemployment.
Where Ho: Null hypothesis
SIGNIFICANCE OF THE STUDY
In our nation Nigeria, it
has been confirmed and indeed apparent that no social or economic welfare
equaled finding job for the jobless citizens among us. In fact this has created
a dilemma that has inspired the researcher to investigate the roles played by
government on the changing or rat of unemployment at a goal.
Therefore, the result of
this research will help the provision of much needed information that would
enhance the creation of more employment opportunity for the masses in the
society, and these jobs may possibly come from three tiers of government (ie)
Federal, state & local the private and the citizens themselves.
Much more than that the
result will serve as a guide to the government and other employers toward
initiating programs for employment of the jobless Nigeria scattered all over
LIMITATION OF STUDY
It is rare or completely
impossible to have a research work that does not have one difficult or another.
In order word every research study has some shortcoming, which arise as a result
of problem encountered by the researcher in the course of his research some
limitation notably are:- History or today in most cases are not adequate and
this specifically hampered the results of the study since a full data on
unemployment and advertised vacancies in Nigeria by industrial sector was no
taken on some of the case.
Also notable as a
limitation is the lade of sophisticated investigation of domestic data relating
to the number of unemployment citizens of Nigeria.
The problem of not having
a central process of advertising vacancies both in private public sector also
constitute a limitation.
Finally, the problem of
inefficient organized records, as well as parts the researcher into the
difficult task of locating the various case notes.
Also, the late arrived of
publication from the federal office of statistics (FOS) on their statistical
computation for unemployment are also a problem that in fact keeps the research
work non absolute. In addition the (insufficient) hour permitted to be used at (CBN)
central bank of Nigeria library for the research work contributed largely to
the limitation a well.
DEFINITION OF BASIC CONCEPTS
This is constructing to
be action by the monetary authorities to influence the national economic objective
by controlling or influencing the quantity and direction of money supply,
credit and the cost of credit. If is aimed at ensuring adequate supply of money
to support financial accommodating for growth and development programs on the
one hand and, stabilizes various sector of the economy for sustainable growth
and development on the other hand, monetary policy is defined as policy
employing the Central Bank Control of the money supply as an instrument for
achieving the objective of economic policy. Similarly from synthesis of most of
the literature and in the context of the Nigeria.
The ultimate targets of
the monetary policy within the time frame are:-
(1) Helping to stabilize the economy.
(2) Full employment
(3) Enhancing the efficiency of resources
(4) Price stability
(5) Sustained increase in growth and
(6) Supporting output and employment
is defined as government expenditure as taxes, borrowing and financial
administration to further national economic objective – Government uses it
expenditure and revenue activities to effect desired changes in income,
production, prices and employment.
changes concern national economic objectives which are targets of monetary
& fiscal policy and include acceleration of economic growth and
development, balance of payment equilibrium, price stability and reduction of
rate of unemployment.
main target of federal expenditure
Within these period are:-
(1) Maintenance of economic equilibrium
part to certain inflation, pressures accelerate economic growth and
(2) Job creation and employment
(3) Promotion of self-reliant development
(4) Poverty alleviation.
is the inability of economic cum society provide an opportunity for individual
eligible (eg) 18 to 65 years old to work and to exercise their ability for
exchange for emoluments. Hence, rendering such skills redundant and useless in
the environment through unemployment is a worldwide phenomenon, it has assumed
alarming dimension in Nigeria since the year 1980’s.
ü Above equilibrium unemployment
ü Demand Deficient unemployment
ü Structural unemployment
ü Frictional unemployment
ü Seasonal unemployment
ü Equilibrium unemployment
ü Regional unemployment
This means that those who
are eligible and willing to work at the prevailing rate of pay are able to find
work without undue for difficulty.
result when through one is employed; one is not making full use of ones ability
or skill in job place, or working below capacity. It results in disguised
who constitute the supply of labour for production processes, they are usually
between the age of 15-19yrs. This exclude, student, homemaker, related person,
the disable and those not interest in work.
COMPANIES INCOME TAX (C.I.T)
is a tool for revenue generating by taxing the private business enterprise
is a way a generation of revenue, through taxes that individual or business do
not directly pay for, they include, excise duties, import duties value added
taxes, sales tax (etc).
GOVERNEMTN RECURRENT EXPENDITURE (RECEX)
are spending on running cost of the day today running of the economy and
government affair such as emolument.
GOVERNMENT CAPITAL EXPENDITURE (CAPEX)
is one of the fiscal tools, which entail expenditure on capital projects. That
is spending on structure, physical asserts such as: schools, roads bridges
airports and all forms of social and economic infrastructure facilities by the