Chapter one (dissertation)


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An introduction to a research report on unemployment in Uganda.

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Chapter one (dissertation)

  1. 1. CHAPTER ONEINTRODUCTION1.0 IntroductionThis chapter contains information on the background of the study, the study problem, researchobjectives, scope of the study research questions and the conceptual frame work. These will helpthe reader understand what is to be researched about.1.1 BackgroundThe problem of youth unemployment and underemployment in Africa poses complex economic,social and moral policy issues. It is also well known that this problem is part and parcel of theoverall problem of unemployment and underemployment that afflicts almost all Africancountries. Unemployment is not a hard bone to chew for just a few unfortunate poor countries,but it is a problem that is not discriminative and biased, because of this, unemployment bites andindeed it bites down on the whole world including the developed countries. It does not take oneto have eyes to see that unemployment is rising around the world. According to the UnitedNations report of 2009, the world recorded the highest unprecedented increase in youthunemployment and in this regard, the number of youth who were unemployed reached 75.8million and in 2010, the global rate of youth unemployment was 12.6%. Unemployment rates inthe 30 wealthy countries that belong to the Organization for Economic Cooperation andDevelopment range from a low of 3.2% in the Netherlands to 17.6% in Spain, according to July2009 figures. The US unemployment rate was 9.4% in July 2009, above the European Union rateof 8.8%. By August, the US unemployment rate had ticked up to 9.7%, a 26-year high. It wasannounced earlier this year 2010 by the International Labor Office that global unemployment lastyear reached the highest level on record. More than 7% of the global work force wasunemployed in 2009.In Africa, many people depend on low productivity subsistence agriculture and the informalsector for their livelihood where returns on labor and capital are low. Despite all the numerous
  2. 2. declarations and commitments, the overall employment situation in Africa has not changed overthe last decade. In 1998 and 2008, the total unemployment rate was 7.4% and 7.6% in sub-Saharan Africa and 12.8% and 10% in North Africa respectively. In most African countries,including the East African countries, unemployment and under-employment levels havecontinued to increase and have remained at extremely high levels despite considerable efforts topromote sustainable development by national governments and international developmentagencies, (Economic Commission for Africa-ECA, 2002).In the region of East Africa, most of the population is involved in growing crops and herdinglivestock either for sale or consumption on the farm. The majority therefore earn their livelihoodon the country side where there are very few wage earners. In Uganda, the problem mostlyaffects the youth and yet, these form the biggest percentage of Uganda’s population.1.2 Statement of the problemUnemployment, is mostly affecting the youth. According to the Uganda National Bureau ofstatistics, the rate of unemployment in Uganda is 32% and 22.3% for the youth. According to theAfrican Development Indicators’ report 2008/2009, 83% of Ugandan youth are unemployed andthe statistics in the Uganda Youth Convention conference held at Makerere University in August2010 show that out of the 400,000 graduates every year only 80,000 get employed. Thegovernment of Uganda has set up The School Leaver’s Industrial Fund according to the 2010/11National Budget which is to provide funds for the youth to start up small scale businesses.However, despite all these efforts to try and improve the situation, the problem of unemploymentstill persists in Uganda. Many Ugandans are still living below the poverty line, there are stillmany people applying for jobs that may require only one person. This research therefore, intendsto attempt to find out the possible causes of the persistent unemployment problem and to find outthe possible solutions to this problem that has for so long undermined the stable growth anddevelopment of Uganda.1.3 General objective:To determine the factors responsible for the high level of youth unemployment in Uganda
  3. 3. 1.4 Specific objectives To examine the trend and the level of youth unemployment in Kampala central (Uganda). To identify and analyze the major causes of youth unemployment in Kampala central. To explore policy options for unemployment in Uganda. To identify the various types of unemployment in Uganda.1.5 Research Questions i. What is the trend and the level of youth unemployment in Kampala central? ii. What are the major causes of youth unemployment in Kampala central? iii. What is the trend in growth of Uganda’s population? iv. What are the major types of unemployment in Uganda? v. What are the policy options for unemployment in Uganda?1.6 Scope of the studyThe scope of the sturdy is shows the limitations of the sturdy in terms of the time, content, andcontent to be covered. This was included to describe toGeographical scopeKampala central is one of the five divisions that make up Kampala district and it being thesmallest of them makes it more ideal for my research.Time scopeContent scope1.7 Justification of the study
  4. 4. If the problem of unemployment is not addressed now, the country is likely to fail to achieve itsMillennium Development Goals. In 2007, in Paris, the Inter Agency and Experts meeting on theMillennium Development Goals indicators came up with new target and indicators that focusedon unemployment, alongside other issues.Many of the youths in Uganda are unemployed and over the years, the problem has worsened.This therefore creates the need to carry out research and if no research is carried out, the futureof Uganda’s development is uncertain. Poverty will increase and so will the crime rate as youthlook for illegal ways of making a living. Kampala has a high number of graduates and in additionto that, many of the youth move to Kampala from villages creating more pressure for theavailable jobs and increasing unemployment. People in Kampala are expected to be employedbut the reality is different hence the need to do research in this area.This research is indeed crucial and a necessity in order to free the youth of Uganda fromexploitation by over ambitious politicians. The World Bank in its 2008 report said Uganda hadthe highest youth unemployment rate and the youngest population in the world. It warned thatunless Uganda scales up her efforts to create jobs, the youth would be more involved in crimeand armed conflicts.The other reason as to why this sturdy had to be done when it was done was that according tome, many of the youth in Uganda are afraid of getting into marriage. This indeed justifies theneed for this sturdy because the main reason is that without any stable and well paying job, theyare unable to support the families that would result from marriage. This sturdy therefore set outto try and solve the unemployment problem among the youth and provide suggestions to avertthis “monstrosity” which is slowly killing the dreams and hopes of us the youth.This study will benefit all the people of Uganda who are in one way or another connected to thesubject of the study. This is in as far as providing the possible solutions and a betterunderstanding of the youth unemployment problem that is affecting Uganda.1.8 Definition of conceptsUnemployment
  5. 5. Unemployment according to Colander (2004) is a situation which occurs when people arelooking for a job and cannot find one.Unemployment rateUnemployment rate is the percentage of people in the economy who are willing and able to wprkbut who are not working. Colander (2004)Cyclical unemploymentAccording to Colander (2004), cyclical unemployment is the type of unemployment that resultsfrom fluctuations in economic activities.Structural unemploymentStructural unemployment is unemployment caused by the institutional structure of an economyor by economic restructuring making some skills obsolete. Colander (2004)Capital is any resource that put aside for investment and developmental purposesYouth: According to the International Labour Organization discussion paper No.4 (2000), it isclear that the definition of who is included in youth very much depends on which dimension of“youth” takes precedence: demographic (e.g. age); cultural (notions of adulthood); biological(attainment of puberty); social (attainment of maturity or marriage ability); or economic (e.g.ability to sustain oneself). The spectrum of youth has been variously defined to range from theages of 10 or 11 years (as in some cultural traditions), to as high as 34 years (as in South Africafor instance). More generally the age range between 12 and 25 years is presupposed, which mayeven be narrowed to 15-24 years. In the case of Uganda, the National Youth Council Statute1993 defines the youth to be those persons of either sex between the ages of 18-30.1.9 Conceptual frame work Unemployment High poverty levels Too many job applications
  6. 6. FactorsLack of skills by the educatedFast growing populationLimited capitalCorruption in the labor marketThe conceptual frame work gives direction to the study.The factors, which are lack of practical skills by the people, fast growing population, limitedcapital and corruption in the labor market if not controlled all result in unemployment.Unemployment when present can be identified by the increased poverty large number ofapplications for jobs.1.9.1 Conclusion