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10 Ways to Reduce Unemployment

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Unemployment concept in tag cloud

By Victor Usifo

1. Fiscal Policy of Government

Economic plan of any government depends on revenue and expenditure.

Fiscal policy shows how government spends the budget and collects revenues to run the country.

It collects revenue such as corporate and income tax, sales tax, custom duties and tariffs and spends it on repairs of roads and salary.

A Fiscal policy is either expansionary or contractionary, but we are focusing on the former.

Expansionary fiscal policy occurs when government reduces tax and spends more money to make the economy grow.

Because of this growth in the economy, individuals and firms have more money to spend, which raises output. This increase in production adds to growth and lowers unemployment in the economy.

2. Central Bank and Nigeria Monetary Policy

Monetary policy refers to money supply, interest rates, credit in the economy, and rules guiding the financial sector issued by the Central Bank of Nigeria (CBN) on behalf of the government.

Every year CBN makes rules for easy operation of the financial sector. It manages money supply by:

  • The lending rates going up
  • The lending rates going down
  • Lending more
  • Lending less
  • Lending rate affects individuals who borrow from banks to pay for their personal needs and firms who borrow from banks to grow their businesses.

Capital is crucial for any business to survive so companies must borrow at sensible interest rates to make profit.

Monetary policy makes it easy for companies to plan the time to borrow from their banks and do so when interest rates are low.

Getting a loan enlarges their business, which increases output and profit, and helps these companies create more jobs.

3. Government Spending

Due to limited resources and competing needs, it is difficult to get required funds from Government to fix infrastructures that need urgent repairs.

However, if government spends money to repair roads, purchase hospital equipment, and fix public schools, its effect on the economy is visible.

For example to repair any road, government must hire contractors who will employ people to work on the project sites.

The effect, repairing a road, will have on employment is that many laborers will get a job.

The second is that the job increases hired workers purchasing power.

The third is that people will patronize any support businesses, set up near any of the projects sites.

4. Agric Sector Reform

Agriculture is the second largest employer of labor in Nigeria. The agro allied value chain can become the hub for creating more jobs for Nigerians.

Let us use a recent case to support this claim. For example, in December 2016, Lagos state government sold Lake Rice to Lagos residents.

This happened due to a deal between Kebbi and Lagos State for the production of Lake Rice brand, and this alliance created many jobs.

Imagine that all states in the country copy this example, and produce one agric commodity; this would not only reduce unemployment but feed the country as well.

Government Intervention in Micro Lending
The government can disburse money to micro finance banks for lending to market women, petty traders, and artisans to stimulate economic growth.

How it will work is that the bank will ask these people to form corporative societies, to enable members get small loans to expand their businesses.

The corporative societies will act as a guarantor for members to ensure borrowers repay the loans.

This plan can help many poor Nigerians become self-reliant and as their business grows; they will create jobs to reduce unemployment.

6. Getting Professional Education

Education sets people free from poverty. Educated people, especially professionals are assets to the nation.

For example, a lawyer could specialize in corporate or marine law. These professionals may work in public service or set up their own practice and employ individuals to work for them.

Let us encourage professionalism so they can become employers to reduce unemployment in Nigeria.

7. Finishing School

Government has failed to fund the education sector, which have led universities to turn out half-baked graduates with little chance to secure employment.

Thankfully, grooming schools have come to the rescue to retrain and make these graduates valuable and employable.

8. Changing University Curriculum

You can change university curriculum to introduce subjects to train undergraduates for skills that are lacking, but essential for the labor market of today.

The present limited curriculum must change to add subjects such as cybernetics and robotics, computer animation, web courses, data capture, and other technology courses.

If we implement this change, graduates will become qualified for positions in the current labor market and reduce unemployment in Nigeria.

9. Training Entrepreneurs

Government can start a program to train entrepreneurs instead of allowing unemployed graduates to search for jobs that are not there.

For example, the National Youths Service Corp program (NYSC) could become a one-year entrepreneurial training program for all graduates who will pass out to create jobs.

In addition, you can set up an internet business by becoming a blogger, website designer, and copywriter, to reduce unemployment in Nigeria.

10. Setting Up Customer Service Centers

You can set up customer service business, to serve the global community.

All that is required is for employees to accept excellence as a personal value and be able to speak English without any accent, to be able to work for firms abroad.

A customer service center, which can employ large numbers of people, is a doable business that can reduce unemployment.

In Conclusion:

Unemployment is a ticking time bomb, which we must not allow to explode on our faces.

Let us all join hands to provide jobs for unemployed people, mostly made up of youths if we all wish to sleep at night with our eyes closed

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Written by PH

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