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Discussing Why Unemployment Is Such an Important Issue

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Discussing Why Unemployment Is Such an Important Issue

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  • June 2012
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Discussing why unemployment is such an important issue

for governments and how it can be tackled in urban areas.

AUTHORED BY
Simon D. Ojera

CONTENTS

PAGE

1.0Introduction…………....…………………………………….…………………………...1

2.0The Concepts of Unemployment………………….……….…………………………….1

2.1Definition..………………………………………………………………………...2

2.2Causes of Unemployment…………………………...……………………….……3

3.Effects of Unemployment………………………… …………………………………...10

4.Tackling Unemployment in Urban areas………………….. ………….……………...13

5.Conclusion and Recommendations …………………………………………………...14

6.References ………………………………………………………………………………15

1. INTRODUCTION
Two serious economic nightmares African governments and the world in general are facing are unemployment and inflation. In Africa, the situation has been made worse by the high birth rate resulting into demographic pressure. As a consequent, there are increasing numbers of new entrants to the labour market negatively proportional to the growth in productive employment. "More than 200 million people globally are reported out of work (Business Week, 2011). This statistic indicates that two third of developed economies and half of developing countries are experiencing a slowdown in employment growth, the paper said. In Africa, unemployment and under-employment is a big problem to the member states. According to ILO, 2008, high unemployment remains one of the greatest challenges to Africa’s development. This has and continues to be a major concern to both member states, policy makers and all other stakeholders. The continuous increase in unemployment has seen increasingly rising poverty level in the sub-Sahara Africa. Pollin et al, 2007, in their study under a UNDP project indicate that in 2005/2006, a large number of individuals who are working could be categorised as working poor because their labour earnings were below the poverty line. This finding is typical of...

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