THE CAUSES AND EFFECT OF UNEMPLOYMENT ON THE NIGERIAN ECONOMY: A CASE STUDY OF OREDO LOCAL GOVERNMENT AREA OF EDO STATE. CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF STUDY Human beings engage in various activities in order to satisfy their wants. In producing human wants (goods and services) land, labour and entrepreneur are utilized for these purposes. Labour being the most dynamic factor of production combines with the other factor to produce goods and services for consumption if fully utilized,, then there will be employment. Unemployment is a hazard of an industrialized economy system, primitive communities were usually self sufficient and had no unemployment problems through they had to accept a veriy low standard of living than communities had even previously enjoyed. Yesufu (1974) in the Nigeria journal of economics and social studies said that some unemployment started with the introduction of money market by the colonial masters to substitute or alter the subsistence economy which our people were conversant with. Wages earning employment was employment was the introduced by the colonial masters in their bid to tap Nigeria raw materials for export were they are sold at profitable price The civil war period provided jobs for many in the armed forces but the magnitude of the unemployed increased after the civil war because of the effect that majority of the unemployed are young workers sentering the labour market for the first time after receiving education to attracts this aspiration and value they did not have enough education and practical training to provide them with skills. These school leavers prefer white collar jobs to the farming. The government could not employ some one because of lack of job opportunity while the population of the working forces was increasingly there was no commensurate increase in job creation. Oduniyi (1986) in his work title “unemployment rate in Nigeria explained that functional nature of Nigeria education system where school leavers cannot be self employed due to lack of foreign resource and the over growing unserviceable debts has brought about retrench and high rate of unemployment that prevail in the country in the recent years. Oduniyi (1987) noted that unemployment rate in December (1985) was 9.8 percent in h=Nigeria and while the Bendel state now Edo state ands delta state urban area 15.4 percent and the rural area has 7.2 percent unemployed rate. Secondary school leavers were relatively few then in Bendel state now Edo state and delta state in the 1960’s and 1970’s before the Udoji award in general and Oredo local government area in particular. This made unemployment rate among secondary school levers. By 1972 when free education of all levels was introduced and there was increase in the job opening available. This brought about high of unemployment in Oredo local government area. The reintroduction of school fees and high rate of unemployment have reduced the number of intake into the secondary school in Edo state 1.2 STATEMENT OF THE PROBLEM The problem that necessitated the carrying out of this research are inherent in the background of the study e.g. 1. What are the effects of unemployment on secondary school leavers in Oredo local government area of Edo state 2. what are the cause of unemployment among school leavers in Oredo local government area of Edo state 3. how does unemployment affect the economic development of Oredo local government area of Edo state 4. what are the effects of unemployment on the standard of living of the secondary school leavers in Oredo local government area of Edo state 1.3 OBJECTIVE OF THE STUDY The objectives of the study include: 1. To enumerate the various types of unemployment in Oredo local government area of Edo state 2. to identify the causes of unemployment in Oredo local government area of Edo state 3. to examine the effect of unemployment in Oredo local government area of Edo state 4. to provide suggestions to guide the government solving the problem of unemployment 1.4 SCOPE OF THE STUDY The scope of this study, the causes and effects of unemployment among secondary school leavers are restricted to Oredo local government area of Edo state 1.5 RESEARCH QUESTIONS 1. Is unemployment the cause of low standard of living in oredo local government area of Edo state? 2. Does unemployment lead to frustrating among school leavers? 3. How does unemployment hinder economic development in Oredo local government area of Edo state? 4. What is the impact of illiteracy on unemployment in Oredo local government area of Edo state? 5. Does the non availability of industries bring about unemployment in Oredo local government area of Edo state? 6. How can unemployment be erased totally in Oredo local government area of Edo state? 1.7 SIGNIFICANCE OF THE STUDY The research is the opinion that the people and authorities in Oredo local government area of Edo state should be able to benefit from the study. This research will help to educate the government on the importance and the effect of unemployment the advantage of this work to the local government authorities and other people in the state. In that it will help them to keep abreast with the latest finding in generating employment with the view to educating the people and the government on the problems of unemployment and instill in them ways of creating and over coming unemployment 1.6 DEFINTION OF TERMS Unemployment: can be defined as a situation whereby persons that have acquired knowledge’s, skills and have the potentiality to work but remain without a beneficial work to do. Unemployment can also be defined as a process where some persons that have been trained with skills and knowledge and prepare to work but have no beneficial work to do Education: it is a process of teaching training and learning especially in schools or colleges to improve knowledge and develop skills Retrench: to reduce workers in order to reduce costs especially for a business, government. Primitive: very simple and old fashioned especially when something is also not convenient and comfortable.