ROLE OF INFORMAL SECTOR IN EMPLOYMENT GENERATION IN NIGERIA.
Need help with a related project topic or New topic? Send Us Your Topic
DOWNLOAD THE COMPLETE PROJECT MATERIAL
ROLE OF INFORMAL SECTOR IN EMPLOYMENT GENERATION IN NIGERIA.
Background of the study
Over the years, experts have debated whether the informal sector should be viewed as a marginalised sector that absorbs excess or entrenched workers, or as a thriving, entrepreneurial component of the Nigerian economy that may encourage economic growth and job creation.
It should be mentioned that around two-thirds of all employees worldwide labour in the informal sector (World Bank, 2009; cited in Atal et al 2013: 34).
The informal sector accounts for a considerable portion of the Nigerian economy. As a result, the sector adds to Nigeria’s GDP and employment, as well as to the country’s overall economic development (Omisakin, 1999, cited in Atah et al. 2013: 32).
According to available statistics in Nigeria, the informal sector accounts for around 60% of the country’s GDP. Like many other developing countries, the industry is regarded as critical to job growth, accounting for approximately 90% of all occupations in the country.
In South Africa, the industry employs 60% of the workforce and accounts for approximately 28% of the country’s GDP (Federal Office of Statistics 2012).
The preceding suggests that, with the necessary legislation and assistance, the informal sector may be a major player in combating unemployment in Nigeria and other developing nations.
According to Onyemaechi (2013:62), the informal sector comprises of units engaged in the production of products and services with the primary goal of providing employment and income to the participants.
Statement of the Problem
The steady rise in Nigeria’s unemployment rate has sparked widespread concern. This has resulted in an army of angry and desperate unemployed adolescents stalking cities, as well as an ongoing inflow of young into metropolitan areas, posing a new threat to an already unstable condition of national security (Hernando 2013; cited in Atal et al 2013: 34).
The government at various levels has implemented numerous policies and programmes aimed at minimising this.
menace, but to no avail. However, the informal sector’s contribution to economic development through job creation can help to reduce unemployment.
The informal sector in developing nations appears to have been continuously rising in recent years, as most individuals have decided to build their own source of income in order to survive (Onyemaechi 2013:66).
Given the ongoing economic and financial crises that affects many African countries, including Nigeria, the informal sector has the ability to offer the necessary push for job creation.
According to Fapohunda (2012: 39), the informal sector contributes significantly to the growth and development of the Nigerian economy.
It provides productive outlets for a significant number of persons who desire or must be self-employed, thereby contributing to the national economy in terms of output and employment.
Against this backdrop, this study seeks to investigate the function of employment generation in Nigeria. Despite the fact that the topic is well documented, attempts have not been taken to investigate the sector’s dynamism in creating jobs in Nigeria, therefore this study aims to fill that gap.
GOALS OF THE STUDY
The primary goal of this research is to investigate the influence of the informal sector in employment generation in Nigeria. To attain this goal, the precise objectives are as follows:
1.) Understanding the informal sector and its activities in Nigeria.
2.) Investigate the relationship between the initial sector and enjoyment generation in Nigeria.
3.) Investigate the role of the informal sector in creating jobs in Nigeria.
RESEARCH QUESTIONS:
1.) What activities take place in Nigeria’s informal sector?
2.) How much employment has the informal sector generated in Nigeria?
Significance of the Study
This study is significant due of its timely nature. It will clarify the roles of the informal sector in Nigeria, prompting the government to consider using the informal sector as a tool to address the country’s unemployment crisis. The studies, programmes, and recommendations will benefit both the government and other unemployed adolescents.
SCOPE OF THE STUDY:
This study investigates the informal sector in Nigeria, including its operations, to better understand the role it has played in job creation in Nigeria.
Limitations of the Study
The main challenge in this project is acquiring materials.
Definition of Terms
1.) Informal Sector: This is the uncontrolled, non-formal sector of the market economy that produces goods and services for sale or other types of recompense. It also refers to the sector that consists of units engaged in the production of products and services with the primary purpose of providing employment and incomes for the people involved (Becker 2004, cited in Onyemaechi 2012: 61).
2.) Employment generation: this is the process of engaging the entire work force in productive economic activity (Yusuf 2014: 4).
3.) Unemployment: This is a state of being unemployed or without work. In other words, anyone who is fit and available for job but fails to acquire one may be termed unemployed for the relevant period (Olubukola, 2013).
References
1.) Attah, A., Audu, A., and Haruna, P. (2012), “Strategy for Reducing Unemployment in Nigeria: The Role of Informal Sector” International Journal of Capacity Building in Education and Management (IJCBEM) 2(1): 32-43.
2.) Fapounda, T. (2013). “Women and the Informal Sector in Nigeria: Implications for Development.” British Journal of Arts and Social Sciences, 4(1), 35–45.
3.) Onyemaechi, J. (2013). “Role of the Informal Sector in the Development of the Nigerian Economy: Output and Employment Approach.” Journal of Economics and Development Studies, 1(1), 60-74.
4.) Yusuf, S. (2014), “Informal Sector and Employment Generation in Nigeria”, MPRA, Lagos.
Need help with a related project topic or New topic? Send Us Your Topic