10 Great Effect of unemployment
The great effect of unemployment in Nigeria: To start with, unemployment is a crucial situation in a developing economy and needs attention to curb the challenges confronting it.
Unemployment refers to a person who is currently not working but is actively seeking employment. It should be noted that the keyword is actively seeking employment. A person is considered unemployed until they can prove they are actively seeking work, which includes submitting a job application or attending a job interview.
If someone is not looking for or seeking employment, they are considered to be hidden unemployed and are not entitled to receive any welfare benefits of any kind and they are not counted in the unemployment rate.
The effect of unemployment in Nigeria has caused so much devastative impact on the youth and the country. Therefore, it is necessary that unemployment challenges are considered as a priority for economic growth and development.
The Effect of Unemployment Can Be Viewed As Follows
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Increase Rate of Crime:
There are lots of effects of unemployment in Nigeria, an increase in the rate of crime in the country cannot be over-emphasized. Those who are unemployed in the country have a lot of wasted time and a lot of stress on what to do also on the challenge of how to improve their slandered of living.
The increased rate of unemployment in Nigeria has resulted in unimaginable insecurity of life and property, the fundamental right of freedom of movement, speech, and association has been limited and abused. Cultism, kidnapping, and violence are the order of the day.
Employment does not eliminate crime in any country or society but it engages people to be productive and responsible to themself and the country at large, and invariably reduces the rate of crime in the society.
Low standard of living:
The living standard of the unemployed in Nigeria is affected as they could not survive a three square meal and provide for their basic needs, this causes the need to depend on others for sustenance. The need to depend on others can only sustain for a while and has eventually plunged many into the criminal acts and has caused an increased crime rate in society. And the majority end up on the streets as criminals, while others give up their lives due to stress and frustration.
Individuals and families lose a source of income. Those who are unemployed may find it harder to find jobs in the future. There is a fall in the standard of living as employment falls in Nigerians, This results in more people buying inferior goods because they have no source of income.
The Decrease in Education:
The resultant effect of unemployment in Nigeria decreases the enrollment of students into school because unemployed people’s children tend to be less educated than employed people’s children. This is due to the difference in revenue between the employed and the unemployed, this invariably increases the possibility of unemployment in Nigeria.
The resultant effect of unemployment in the country is a recurrent effect that requires government attention to bridge the gap between “the have and the have not “through job creation. The provision of jobs creates an avenue for an increase in the education of the young generation.
Increase Government Spending:
The increase in unemployment due to lack of job opportunities or factors of unemployment results in the majority of the unemployed applying and seek for government assistant through welfare benefits. This factor fetches an increase in government spending which caused the government plans and policies to be shifted toward the unemployment situation of the region
When the employment rate falls, there are more people unemployed. These people apply for government assistance through welfare benefits. This results in an increase in government spending as the government has to hand out more benefits. Or the government will shift budgets towards unemployment benefits.
Low Businesses Income and Profit:
Business enterprises and companies strive in an environment where the inhabitant or people living in the environment are employed with an average standard of living. The economic situation in Nigeria is slowed down due to low purchasing power within the country. The GDP within the country is also low which can also lead to increased unemployment.
Low pay Job:
Wages get lowered because there is a surplus of the working force. firm gain the benefit of the lower cost of wages as availability of labor force increase by the day, the employees are willing to work and compete with a low pay job.
The challenge faced by many firms is that they have to spend more resources and time on training new employees since they have been out of a job or lack the skills required for new jobs.
Regional Economic and Human Depression:
The increase in unemployment set in an economic depression as the company’s income and profit decrease, since the purchasing power of the people in the country is low to increase sales and profit, this prompt the retrenchment or layoff of the employee in order to sustain the business or companies financial downturn.
Unemployment also leads to an increase in people suffering from depression, alcoholism, obesity, gambling addiction. Anxiety and other mental health issues, especially if an individual truly wants a job but can’t find employment. Tension can occur causing stress and strain on the body.
Decrease in Tax Revenues:
Unemployment to a large extent affects government tax revenue as fewer people are employed and earning. This causes a decline in government tax for economic development.
A decrease in government revenue constrains the development in Nigeria as basic social amenities are not provided insufficiency to meet the need of the citizens. It stagnates the development and growth of the country since the purchasing power of the unemployed is less.
Increase In Poverty:
One of the common effects of unemployment is the increase in poverty, everything in the world costs money when there is no source of money or income due to unemployment to cater for immediate needs like family or personal needs.
That is a difficult situation to leave without means of sustenance and providing the basic need of life such as food and shelter.
Conclusion and recommendation
Unemployment is the underutilization of talent and knowledge to make humanity better. Labour cannot be stored and used later. Therefore, when not used it is lost forever. When unemployment causes so many social problems like crime, depression and social unrest, insecurity.
Employment is the most direct way that people survive, a way of bringing the income in other to purchase necessities of life and improve the economic standard of the country.
The government should give priority to increase employment opportunities and encourage empowerment schemes such as granting loans with minimal or no interest to entrepreneurs and also encourage foreign investment to create employment opportunities.