Full Project – SOCIO-ECONOMIC EFFECTS OF GRADUATE UNEMPLOYMENT IN URBAN CENTRES

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CHAPTER ONE: INTRODUCTION

1.1 Background to the Study

Unemployment is one of the most pressing socio-economic issues facing many developing countries, particularly in urban centres where population growth and educational expansion have not been matched with commensurate job creation. Graduate unemployment, a subset of general unemployment, refers to the inability of university and polytechnic graduates to secure gainful employment after completing their education. In Nigeria, and especially in cities like Ibadan, graduate unemployment has reached alarming levels, threatening both social stability and economic development (Adebayo, 2013).

Ibadan, one of Nigeria’s oldest and most populous urban centres, is home to several tertiary institutions, including the University of Ibadan, The Polytechnic Ibadan, and others. Each year, thousands of graduates enter the labour market with high expectations, only to be confronted by the harsh realities of limited job opportunities, underemployment, and job-market mismatches (Emeh, 2012). The consequences of this situation are far-reaching and include increased poverty, social unrest, psychological distress, and a general decline in living standards.

Economic theories such as the Keynesian theory of unemployment emphasize insufficient aggregate demand as a major cause of joblessness, while structural unemployment theories point to mismatches between skills acquired and available jobs (Blanchard & Johnson, 2012). These frameworks provide useful lenses for examining graduate unemployment in Ibadan and understanding its socio-economic impact on individuals and the urban society at large.

1.2 Statement of the Problem

Despite the growth in tertiary education and the expansion of academic institutions in Nigeria, the country continues to grapple with a high level of graduate unemployment. This phenomenon is particularly pronounced in urban centres such as Ibadan, where increasing numbers of graduates compete for a shrinking pool of jobs. Many of these graduates resort to menial jobs, underemployment, or prolonged dependence on family support.

The issue of graduate unemployment poses severe socio-economic threats, including increased crime rates, reduced productivity, mental health challenges, and erosion of societal values. These effects are particularly worrisome in Ibadan, where the urban infrastructure is strained, and social inequalities are becoming more visible. What are the specific socio-economic consequences of graduate unemployment in Ibadan? What factors contribute to this persistent trend despite educational qualifications? These questions form the core of this study.

1.3 Objectives of the Study

The main objective of this study is to investigate the socio-economic effects of graduate unemployment in Ibadan. The specific objectives are to:

1. Examine the extent and nature of graduate unemployment in Ibadan.

2. Identify the socio-economic consequences of graduate unemployment on individuals and the urban environment.

3. Assess the coping mechanisms adopted by unemployed graduates in Ibadan.

4. Evaluate the role of government and private sector interventions in mitigating graduate unemployment.

1.4 Research Questions

1. What is the current state of graduate unemployment in Ibadan?

2. What are the major socio-economic effects of graduate unemployment on individuals and the urban society?

3. What coping strategies do unemployed graduates in Ibadan adopt?

4. How effective are government and private sector initiatives in addressing graduate unemployment?

1.5 Research Hypothesis

H₀: There is no significant relationship between graduate unemployment and socio-economic instability in Ibadan.

1.6 Significance of the Study

This study is significant for several reasons. First, it adds to the growing body of literature on youth unemployment in Nigeria by focusing on graduates, a group often assumed to be privileged in the labour market. Second, it provides empirical data that policymakers and stakeholders can use to develop targeted interventions aimed at reducing graduate unemployment and its negative socio-economic impacts. Lastly, the study will help graduates and students to understand the dynamics of the job market and adopt proactive strategies for employability.

1.7 Scope of the Study

This study is restricted to Ibadan, the capital city of Oyo State, Nigeria. It focuses exclusively on unemployed graduates residing in the urban areas of Ibadan. While it acknowledges broader issues of youth and general unemployment, the primary focus remains on individuals with tertiary education qualifications who are currently unemployed or underemployed.

1.8 Operational Definition of Terms

• Graduate Unemployment: The condition where individuals with tertiary education qualifications are unable to find gainful employment.

• Socio-Economic Effects: The combined social and economic impacts of a phenomenon, such as unemployment, on individuals and communities.

• Urban Centre: A densely populated area with significant infrastructure and administrative functions; in this context, Ibadan.

• Underemployment: A situation in which a person is employed but not in a job that fully utilizes their skills, education, or availability.

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