Despite the Nigerian economy is growing, the problem of the unemployment is still actual for this country. The statistics shows that practically 24 percent of youth is not able to find a job in comparison with the European countries, where the rate of unemployment is almost 2 times lower. Figures are impressive – more than 42 million people are unemployed. Nigeria's population is constantly increasing and the government is less able to create new vacancies.
In a recent interview the President of Nigeria Goodluck Jonathan announced that he and his team are doing everything possible to reduce the percentage of unemployed persons and increase the motivation to find a job. The President said that the country is preparing to launch new enterprise that could provide with job young university graduates.
What are the causes of problem of unemployment? Is it solvable? Still there is no effective plan for how to revive the labor market. The first and the main reason is mismanagement in Nigeria. Corruption aggravates the situation and civil wars ultimately weakened the country's economy. Nigeria is full with natural and mineral resources, but none of these advantages was used for the improvement of situation.
Low economic growth has caused worse production and reduction of the purchasing power of people. Unemployment of the Nigerian’s population increased the consumption level, especially between youth and pupils of secondary schools (35-50 %). Demonstrations and protests have become commonplace in the country.
One of the best ways of solution this problem is effective and right usage of agriculture. Land reform and training of specialists may cause a great number of workplaces for Nigerians. Such actions let them maintain better standard of living and a lot of citizens will be able to buy lands for their activity. In other cases there is a big risk of transformation of rural industry in unnecessary and non-profit sector of the economy.
Other industries of economy are not well developed and do not use the maximum of its potential. Such branches as coal, palm oil, textiles, food products, footwear, chemicals and ceramics may bring foreign exchange earnings for the country. Restructuring of GDP may partially solve the problem. Oil sector provides approximately 90% of state revenue, but non-petroleum industries are practically not invested. Such dependence from oil leads to the alienation and disillusionment of many Nigerians.
As the climate of Nigeria makes unfavorable conditions to grow crops on the arable lands, the government should seriously reflect on the variant of reducing rural residents, where the highest level of unemployment and poverty exists.
Special training and programs should be provided to decrease the rate of poverty and unemployment. There is no financial incentive for the Nigerians to get new skills and knowledge and that’s why there are no human resources to be involved for the development of the economy of the country.