WOLAITA SODO UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF MANAGEMENT

MY RESEARCH TITTLE ON: CAUSE AND CONSEQUENCE OF YOUTH UNEMPLOYEMENT (IN

A Research Paper Submitted to the Department of Management in Partial Fulfillment of the

PREPARED BY: WORKNEH MEKETE

ID NO: SS/R/215/12

ADVISOR: ADDISU TESEMA(ASS PROF)

November: 2023 G.C

WOLAITA SODO: ETHIOPIA

First and foremost, i would like to thanks the almighty God for all his blessing and for giving me the
ability and strength topursue my student. i would like to express my deepest gratitude to my advisor.
Adisu Tesema.(Assi proof) for his unreserved support,encouragement and valuable comments throughout
the course of this study.

my deepest and warmest appreciations also go to my family and friends for this continous support for the
successful compilation of my compass life.

at the last, i would like to thank my classmate students, i do not forget your support and advise to my
gratitude.

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 Abstract:

Youth unemployment is a significant socio-economic challenge faced by many regions around the world.
This research abstract aims to explore the causes and consequences of youth unemployment in Wolaita
Sodo Town, a vibrant urban center in Ethiopia. The study investigates the factors contributing to the high
rates of unemployment among the youth population and examines the implications it has on individuals,
communities, and the overall local economy.

To identify the causes of youth unemployment, a mixed-methods approach was employed, combining
quantitative surveys and qualitative interviews. A representative sample of young individuals sample
between 30 from Wolaita Sodo Town was surveyed, capturing information on their educational
background, skills, aspirations, access to job opportunities, and labor market dynamics. Additionally, in-
depth interviews were conducted with key stakeholders, including government officials, business owners,
and community leaders, to gain insights into the underlying systemic factors influencing youth
unemployment.

Preliminary findings indicate that several interrelated factors contribute to youth unemployment in
Wolaita Sodo Town. These include limited access to quality education and vocational training, a
mismatch between skills acquired and labor market demands, insufficient job creation, inadequate support
for entrepreneurship, and a lack of investment in key economic sectors. Additionally, socio-cultural
barriers and gender inequalities were identified as factors exacerbating the unemployment situation.

The consequences of youth unemployment in Wolaita Sodo Town are multi-faceted. Unemployed youth
face various challenges, including income insecurity, limited social mobility, psychological distress, and
increased vulnerability to social ills such as crime and substance abuse. Moreover, the community and
local economy suffer from a loss of productive potential, decreased consumer spending, and diminished
human capital development.

Key word= Youth unemployment, causes, consequences, Wolaita Sodo town, socio-economic
development, youth, employment, joblessness, factors, analysis, implications, challenges, solutions,
economic growth, social impact.

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 Acronomy

BLS: bureau of labor statistics

AEO: African Economic outlook

WS: Wolaita Sodo

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Table of Contents
ACKNOWLEDGEMENT..............................................................................................................................i

Abstract:.........................................................................................................................................................ii

Acronomy.....................................................................................................................................................iii

Chapter one....................................................................................................................................................1

1.1 Introduction..........................................................................................................................................1

1.2. Statement of the problem....................................................................................................................3

1.3 Objectives of the study.........................................................................................................................4

1.5 Scope of the study................................................................................................................................5

Chapter two....................................................................................................................................................7

2.1 Literature review..................................................................................................................................7

2.2 The concept of youth unemployment..................................................................................................7

2.3 Theoretical framework on youth unemployment.................................................................................7

2.4 Marxist theory on unemployment.......................................................................................................7

2.5 Keynesian Economic Theory...............................................................................................................7

2.6 Classical Theory of Unemployment....................................................................................................8

2.8 The Cause and Its Problem in Africa...................................................................................................9

2.9 Problem of Youth Unemployment in Ethiopia..................................................................................10

2.9.1 Consequences of unemployment....................................................................................................10

Chapter Three...............................................................................................................................................13

3. Researcher Methodology.........................................................................................................................13

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 3.1 The study area....................................................................................................................................13

3.2 Study Design......................................................................................................................................13

3.3 Target Population of the Study..........................................................................................................13

3.4 Sampling technique...........................................................................................................................13

3.5 Sampling size.....................................................................................................................................14

3.6 Methods of data collection.................................................................................................................14

3.7 Method of data analysis.....................................................................................................................14

CHAPTER FOUR........................................................................................................................................16

4.1 Back ground of the participants.........................................................................................................16

4.2 Cause of youth unemployment in the study area...............................................................................18

4.3 Consequence related questions..........................................................................................................20

4.4 External factors of youth unemployment...........................................................................................23

CHAPTER FIVE.........................................................................................................................................25

5. CONCLUSION AND RECOMMENDATION.......................................................................................25

5.1 Summary and conclusion...................................................................................................................25

5.2 Recommendation...............................................................................................................................26

Reference.....................................................................................................................................................28

Apenndex.....................................................................................................................................................30

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 LIST OF TABLE

Table 1 on sex’s distribution of partners......................................................................................................23

Table 2 age distribution of respondents.......................................................................................................23

Table 3 religions status of participant..........................................................................................................24

Table 4 marital status of the participants.....................................................................................................24

Table 5 educational level of participation....................................................................................................25

Table 6 Does lack of job opportunity could be cause of youth unemployment in your locality?...............25

Table 7 Mismatch of interest and a reliable of job may could be a case of youth unemployment..............26

Table 8 For how long you become unemployed..........................................................................................26

Table 9 What external factors do you think cause for your employment?..................................................27

Table 10 unemployment has been the economic consequences on youth?................................................27

Table 11 does youth face social problems because of your unemployment?..............................................28

Table 12 Youth unemployment have Psychological problem on youth......................................................29

Table 13 Youth unemployment was make the youth criminal....................................................................29

Table 14 is youth unemployment increasing?.............................................................................................30

Table 15 variation of unemployment with...................................................................................................31

Table 16 attempts of create thrown job.......................................................................................................32

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 Chapter one

1.1 Introduction

Unemployment is defined as the bureau of labor statistics (BLS) as people who do not have job but
actively looking job. Now, youth unemployment is jobless of young people who defined by UK as 14-28
years old and unemployment person is some are who does not have job but activity seeking work.

In order to qualify unemployed for official and statically measurement the individual must be without
employment wasing and able to work at the officially designated working and actively searching for
position. Youth unemployment refers are historically four to five times more than adult rates in every
county in the world.

A high level of and under employment is one of the critical socio-economic problems facing Ethiopia.
While the labor force grows with an increasing proportion of youth, employment growth is in adequate to
absorb labor market entrants. As a result youth are especially affected by unemployment. Moreover
young people are more likely to be employed in jobs of low quality underemployed in jobs of low quality
underemployed working long hours for low wages, engaged in dangerous work or receive only short term
and or informal (CSA, 2004).

The inadequate employment situation of youth has a number of socio-economic, political and moral
consequences. Population estimate in 2015 suggest that over 112 million people live in Ethiopia. The
central statistical authority report of 1994 states that 2.93% of rate of unemployment is prevailing in the
face of rapid rate of population. The prospect of employment growth in developing countries especially in
sub-Saharan African has worsened because of various reasons. In these regard Ethiopia is not an
exception as it is one of these countries exposed to complex social problem like massive unemployment
particularly youth unemployment. The unemployment rate has been constantly increasing by age, sex and
geographic location for instance the unemployment rate had been 2.1 in 2000 and 5.1 in 2014. Thus with
in the decade the rate had grown by 144 percent if this continues by the same rate in year 2023 the rate
was be 19.1 (Ibid).

Unemployment are the sever problem prevailing in virtually all countries of the world. These problems
have a serious effect not only on the living standard of people and the socio-economic status of a nation
but also elevate the magnitude of corruption, poverty, crime and suicidal rate in society (Asghar 2002;
Blakely et al, 2003).

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Unemployment has a negative effect on the physical wellbeing of the suffering peoples. The unemployed
are likely to experience such feelings as depression, hopelessness, disagree, annoyance, bitterness and
humiliation (Gordeney 1997; and Jacobson 1997). Different crime dishonesty, fraud, theft and violence
generally prevail in a society where population is unemployed on a large scale. A variety of other mental
and health disorders drug abuse and psychosomatic ailments are strongly linked with unemployment
(Birtt, 1994).

Unemployment had been a serious problem of international from the period of great depression when
high level of unemployment existed in the world. Structural unemployment in Europe, job in security in
United States and restricting problem in Soviet Union were some of the international economic problems
concerned unemployment .

Though in different magnitude, unemployment still exists in the world. The seriousness of the problem
may vary from one country to another. But it is a concern for both the developed and under developed
nations. There are a number of casual factors which play a key role in growing circumstance of
unemployment in a society. The current condition of joblessness, especially among educators has its roots
mainly in the disparately of establishment of educational institutions and market value of different
professions. The expansion of award colleges and universities without taking to account the future
emerging needs of the economy may also lead to disproportion in the labor market and ultimately results
in the form of unemployment.

High population growth miss much between skill and job, education quality increasing rural-urban
migration and low level of economic growth are among the major factors that have resulted in the present
high unemployment level.

The prospect of unemployment, in developing countries, especially in Sub-Saharan Africa has worsened
because of high population growth and low level of economic growth and other reasons. In this regard,
Ethiopia as it is one of these countries highly exposed to complex social and economic problems like
massive unemployment. The unemployment rate has been constantly increasing, from 19.10% in 2019 to
50% in 2022. Thus within the decade the rate had grown by 144 percent (CSA, 2004).

The overall incident that is why the city now a day is confined with a large number of youth unemployed
and since there is no unemployment benefits, unlike it is the case of in developed countries, these youth
unemployed are enjoying a life which is very much tragic. Even if labor force is one of the factors of
production, Ethiopia did not exploit it efficiently.

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Globally over 200 million youth were unemployed at the end of 2010. The reasons for unemployment
various from country to country, based on nature economic context (mursy Hanan, 2012)

There are many causes for with unemployment which stem from issues related to the structure of job and
labor marketer to education (Forlang, 2012). Youth unemployment is a problem that affects most
countries like Ethiopia. Here Africa is the fastest growing and most youthful population in the world, and
also over 20%of African population is between the ages of (15-20), so this indication is more of
unemployment ILO (2013). Accruing to youth rate /youth/ unemployment in Ethiopia is high from (1999-
2007) FDRE CSA (2003).

According to the International Labor Organization (ILO), the overall unemployment rate in Africa was
7.9% in 2013. This equates to approximately 28.3 million people who were unemployed in Africa in
2013.

In Ethiopia, the unemployment rate was 2.1% in 2013, according to the World Bank. This means that out
of a labor force of approximately 1.14 million were unemployed in 2013.

In general youth unemployment in Ethiopia specifically in my study area sodo town is very difficult to
know or measures accurately. As a result of this the study was try to assess, the cause, to extent and
consequence of youth unemployment at the study area.

1.2. Statement of the problem

Unemployment in Ethiopia is viewed by many intellectuals as a very high and more adverse in urban
center of the nation particularly in its primate city Addis Ababa. In General unemployment in Ethiopia
seems to be a phenomenal being prevalent in the city state with the majority of unemployed people being
young with modest levels of formal education.

The economy of Ethiopia has proven unable to accommodate the rapid growth of labor force. The
unemployment became a serious problem in urban areas. As many suggested the primary reason is that
the growth of the economy and its capacity to create jobs has not keep peace with the population growth.

Though the above suggestion on the issue of youth unemployment in Ethiopia are acceptable there are
other issues that causes to unemployment such as educational system, ever growing rural urban migration
and non work status of the society in agriculture etc. and its consequence such as political, economical,
psychological and social problem.

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Unemployment is one of the major prevailing social and economic problems in almost all countries of the
world, which every country should fight against. Africa, particularly Ethiopia is confronted with this
problem that has been extremely challenging. Particularly youth unemployment, various studies have
indicated that those who are not employed commit crime against society and persistent unemployment
results in begging.

It also results to a deterioration of both psychical and psychological health-higher level of heart disease,
alcoholism and suicide. The problem of unemployment is aggravated in certain segments of the
population particularly youth unemployment.

However Tsedey studies about the consequence of lack of employment opportunities for Ethiopian
women migration to Arab countries in the year 2000, Fekadu studies about assessment of socio-cultural
factors affecting women employment opportunity in Ethiopia 2003, kidst studies women and employment
situation in Addis Ababa in the year 2001 and yemisrach studies women training for self employment in
the year 1994.

But no study is found by the researcher about the cause and consequence of youth unemployment in sodo
town Therefore these initiated me to make study on the specified subject and I want to fill the gap by
identifying what are the characteristics, cause and consequences of unemployment at the study area. In
national level, the rate of unemployment as intense was 23% for both sex and 29% and 16%for males and
females respectively, on the date of 2012.

(FDRE CSA, 2012). The researcher also may show the difference on the sex but impossible for showing
time change because of resources limits so, the aim to conduct the study was to know variation on sex and
showing and comparing with previous resources and may indicate corrective measures if possible.

In general, the previous research’s show consequences of the youth unemployment like alcoholism,
suicide, prostitution and other .But my focus is on cause ,extent and consequences of the problem other
than identified effects joblessness in the area.

1.3 Objectives of the study

1.3.1 General objectives of study

The general objectives of the study are assessing cause and consequence of youth unemployment in sodo
town.

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1.3.2 Specific objectives of study

The study has included the following objectives;-

• To investigate the cause of youth unemployment.

1.4 Research Questions

• What are the causes of youth unemployment?

1.5 Scope of the study

It is clear that, the problem of youth unemployment is the global and national issue but duet to the
constraint of time and finance the study was conducted only at the town focus on the main and general
causes of youth unemployment and its consequences on the target population as well as on other
stakeholders.

1.6 Purpose of the study

Youth unemployment is one of the social problems that affect a significant number of people as well as
our country’s development efforts. Having a scientifically proven information and knowledge on the
matter is very important to design and intervene on the issue in systematic and effective ways. This study
can serve as an input in policy practice and a starting point for future researches in the area. Having a
contextualized understanding of the socioeconomic factors behind youth unemployment can also play a
role in creating awareness and teaching the society.

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 Chapter two

2.1 Literature review

2.2 The concept of youth unemployment

What is unemployment? Unemployment is the act and the situation of jobless for certain period of time.
The specific topic of my study youth unemployment is one the most critical challenges the world is facing
today. Young people make up almost half of the world’s unemployed population despite this unemployed
account for ¼ of the working population youth unemployment is the unemployment of young people
defined by USA as 19-28 years old (UN 2020). There are 1.2 billion youth in the world aged between 15
and 28 accounting for 17% of the world’s population, 87% of them are in developing countries. UN
(2012)In the other word youth unemployment refers to the condition and extent of joblessness within an
economy and measured in terms of unemployment rate, which in the number of unemployed worker
divided by the total labor force. (Robin 1983)

2.3 Theoretical framework on youth unemployment

2.4 Marxist theory on unemployment

According to Karl Marx unemployment is inherited within the unstable capitalist system and periodic
crises of mass unemployment are too expected. The function of proletariat within the capitalist system is
to provide are some army of labor that creates dawn pressure of wage. This is accomplished by dividing
the proletariat into surplus labor (employees) and under unemployment (unemployed) (Karl Marx 2009

This reserve army of labor fights among themselves for scarce jobs at lower wage. At the first glance
unemployment seems inefficient since unemployed worker do not increase profit. However,
unemployment is profitable with is global capitalist system because unemployment lowers wages which
are cost from perspective of the owner. From this perspective low wager benefit the system by reducing
economic rent yet it does not benefit workers. According to Marx the only way to permanently eliminate
unemployment would be to abolish capitalism and the system of forced competition for wages and then
shift to a socialist or communist of persistent unemployment if proof the inability of capitalism to ensure
for unemployment growth in employment (Peter Barth and Dennis Hefley, 2004)

2.5 Keynesian Economic Theory

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This theory emphasizes the cyclic nature of unemployment and recommends government intervention in
the economy it claims was reduce unemployment during recessions. This theory focuses on recurrent
shocks that suddenly reduce aggregate demand for workers. This include financial stimuli publicly funded
job creation and expressionist monetary policy (ILO, 2013)

2.6 Classical Theory of Unemployment

Within the classical model the only way true involuntary unemployment can exist if something gets in the
way of market force. The presence of a legal minimum wage only affects a portion of the work force.
However, people who are relatively unskilled including many teenagers. But unemployment tends to
affect people at all wage levels. Classical economists suggest other market interference reason for
unemployment as well as the economy might provide less than optimal number of jobs they believe
because

• Regulation on business reduces their growth restricting within the demand for labor.
• Labor related regulation or safety regulation (Tomas Weiss Kof, 2013)
• 2.7 Cause and Problem of Youth Unemployment in the Global Level

These are multiple and complex causes behind youth unemployment. Among them, the quality and
relevance of education inflexible, labor market and regulations which in turn create situation of assistance
and dependency are the main discussed today’s world
(http://.Economicshelp.org/blog/527/economics/reasonfor youth-unemployment (24 April 2015)

The reason for youth unemployment is fairly similar to other cause for unemployment that includes:

1. Lack of qualification – young without skill is much more likely to be unemployed (structural
unemployment)

2. Geographical unemployment – youth unemployment is often focused in certain areas usually inner
cities where there is low achievement and low expectation.

3. Real wage unemployment – you could argue unemployment is caused by labor market rigidities and
wager being about the equilibrium rate.

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4. Cyclical unemployment – the biggest cause of unemployment in Britain is often cyclical or demand
deficient unemployment. This is caused by output failure that occurs during recession. During the 2009
recession youth unemployment increased at faster rate than the actual unemployment rate. This is because
that young worker are unemployed because inexperienced on certain jobs.

5. Frictional unemployment – school leavers may just take time to find the right task.

6. Cultural unemployment – youth unemployment often highest among deprived whose there is
pessimism over job prospect. Youth unemployment is often higher among people who have history of
broken families, droops or criminal record.

7. Underground Economy- official unemployment may occur in career where there is thriving black
economy: i.e. there are unofficial jobs for people take. These jobs may be illegal such as dealing in soft
drugs.

8. Hysteresis – hysteresis is the idea that past unemployment tends is likely to cause future
unemployment. If young people have been unemployed in the past becomes increasingly difficult to get
job because lack of May cause to be motivated and the firm to be unwasing to hire in the first place or
lack of opportunity and skill of lack of employment.
(http://www.economichelp.org/blog/517/economics/reasonforyouth unemployment (24 April 2015).

The above cause for youth unemployment in the world is one of the deepest economic and social problem
facing economies the world over increasingly considered an international time for both developed and
developing nations alike; significantly young people are more vulnerable to the state of the economy. The
recent economic crisis increased youth unemployment by 1% double the effect on the adult rate of 0.5%
rise (ILO, 2010)

2.8 The Cause and Its Problem in Africa

Youth unemployment in Africa is similar to other part of the world with highest young population.
African countries define youth as someone from as youngest 15 to someone well into their mid thirty
which varies from standardized definition of USA. (Louph etal, 2013).

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World Bank 2008 report youth unemployment in Africa the potential problem and promise rather young
employment is more prevalent in urban areas. This problem leads to another problem impression from
rural to urban migration. (African Economic outlook, 2012) The cause for ever country and continent is
similar even though the extent of cause effect is different i.e. lack of qualification, geographical
unemployment, frictional unemployment … etc.

2.9 Problem of Youth Unemployment in Ethiopia

Unemployment in Ethiopia is a serious problem of concern particularly for the 15-24 age groups. And
also Ethiopia is the second largest in sub-Sahara countries around 110 million population (CSA 2021).
And where population growth rate is still around 2.6% According to World Bank report 2007.

The future prospects to be worthy for some reason if we look at the overall trend and dynamics of
education in Ethiopia the sector contribute a lot to youth unemployment like leads to better employment
realities has rarely come across with assumption that educated youth are the ones the better employment
opportunity. It shows that the unemployment appear to be higher among the youth with at least some
schooling experience than among those with no schooling World Bank 2008. This means the argument
educated youth stand a greater chance of unemployment holds true that is unemployment under
developed countries better educated youth the higher of unemployment rate become. A 2005 UNECA
report states that youth for more privileged background focus their job search for better paid public sector
position and as a result wasing to queue for such jobs and remain unemployed (UNCEF, 2005)

Ethiopia has one of the highest urban unemployment rates worldwide at 50% youth labor force.
According to a report by the ministry of labor and social affair 87% of all registered job seekers are
between 15-29, 68 of employed youth (rural-urban) are unpaid family workers lack of employment
opportunity for Ethiopian young people is among the critical development challenge facing the country
and key barrier to national effort towards the millennium development goal (Taya, 2013)

2.9.1 Consequences of unemployment

Some people may view unemployment has problem only for those without jobs and their families.
However, sociological point unemployment affects the entire society and for reaching consequence in
both micro and macro level (Arnold, 1999)

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From micro level the unemployed individual and his or her family most adjust to lose of spending power.
In addition there is an accompanying loss of self-image and social status science or culture and other view
unemployment as a kind of failure (Arnold, 1999)

As macro level unemployment leads to reduce demand for goods and services sells by the retailer, firms
and other business are affected adversely and this can lead to further lay of wage earners most contribute
to unemployment insurance and welfare program that assist those who are without job. As one responds
to unemployment people seek out work in the informal economy. In some case they was anticipate in
criminal enterprise Ibid.

Unemployment often leads to significantly lower self-esteem as well or increase psychological distress,
physical health symptoms alcoholic symptom and criminal behavior among youth (Douglas, 2011).

The following are the some consequence of youth unemployment – a lost generation: unemployed youth
has been called a lost generation “not only because of productivity loss but also because of long term
direct and indirect impact unemployment on young people and their families (most Morley eta al, 2012).

Political unrest and increased public spending – the rise of political unrest and anti-social behavior in the
world has been recently attributed to youth unemployment e.g. during 2011 it became a key factor in
fuelling protest around the globe within twelve month, four regimes ( Tunisia, Egypt, Libya…)

Lack of innovation – the economic crises has led to a global decrease in competitiveness. There is a risk
of loss of talent and skill since a great amount of university graduates are unable to find a job and to get
their knowledge and ability into producing innovation and contributing to economic growth (Ernest et al,
2019)

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 Chapter Three

3. Researcher Methodology

3.1 The study area

With accordance to this research objective the target populations are criminals based on this the study was
conducted among youths that living at sodo town. The town is found in SNNP region wolaita zone 327
km away from Addis Ababa to the south western and this town is the capital of wolaita zone. The
rationalities behind why I chose this town from other towns is since sodo my learned place this means I
have better chance in order to understand the existing socio-economic conditions than other places, this
means I can able to get better information about the issue better than others. The other reason is since the
topic is not yet studied in this area and this condition is motivate me to conduct my senior essay in this
area.

3.2 Study Design

In order to investigate the objective of this study and to answer the research question, the researcher used
descriptive research design because it clear describes the existing situation problem on the cause and
consequences of youth unemployment in wolaita sodo town while it insure the maximization of reliability
of data and minimization of bias, easy to understand and interpret.

3.3 Target Population of the Study

The focus of the research is on the causes and consequences of youth unemployment specifically in
Wolaita Sodo town. The target population includes all young people who are currently unemployed in the
town. This could include those who have recently graduated from school or university, as well as those
who have been out of work for an extended period of time. The target population may also include
individuals who are underemployed, meaning they are working in jobs that do not fully utilize their skills
and education. Understanding the experiences and perspectives of this target population is essential for
developing effective policies and interventions to address youth unemployment in Wolaita Sodo town.
The target populations of this study estimated 111,000 according to ( Alemu, A. A., & Adugna, L 2019).

3.4 Sampling technique

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 The use of appropriate sampling method is for representative sample. Basically this research was
employing non-probability from non-probability the researcher was use purposive/judgmental sampling
and snowball because the researcher believes that those kind of sampling techniques are important for this
study in the study area.

3.5 Sampling size

By using none probability methods he researcher was select 30 participants (samples) from the study area.
snowball sampling method was employee in non probability method key informant etc. was use bay the
researcher from non-probability methods. Sample size is determined by accuracy of data, cost , time,
inconvenience and nature of population, i.e. homogeneity and heterogeneity. By taking into account
those concepts the researcher proposes a total of 30 participants but the actual sample size was determine
by data saturation.

The selection of entities is bases on non-probability sampling technique due to the difficulty of accessing
all the entity type and the inconvenience to meet all within the specific time period. Thus, non-probability
sampling technique is employs to acquire the needed information through structured questionnaire from
the selecting entity type. he non random sampling technique on the identifying cause and c onsequence of
youth unemployment is that they have almost similar grounds.

The probability sampling also was use in the study. It is important to gather different information from
different persons of view about the study. Thus, the researcher believes that the analysis which is gives
bases on the non-random sampling represents the whole population. Thus, all data’s that was collect bay
using

non probability methods from the research participant the researcher believes that the analysis which is
gives bases on the non-random sampling represents the whole population.

3.6 Methods of data collection

The researcher was use primary and secondary sources of data. The primary source is such as:
questionnaires, interview, observation, and the secondary source are such as: letters, books& newspaper,
etc was be used. The researcher was gather questionnaires and interview while conducting the research.
The researcher was prepare both close ended and open ended questionnaires and personal interviews

3.7 Method of data analysis

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After the necessary data collected the analysis of the data in the study was be descriptive method of data
analysis is finding to be important for transforming of the raw data in to a form that makes easy to
understand and interpret. Primary descriptive techniques is was be used with simple statically analysis
such as percentage, chart and some other relevant tools was be used. In addition categorical method such
as tabular presentation was be used to the study to show the result briefly

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 CHAPTER FOUR

4 DATA ANALYSIS AND INTERPRETATION

This part of the research paper incorporates data presentation and analysis. The data were collected by
using questionnaire and interview is also used for collective data on officials and by simple observation
on the society.

The questionnaire and interview is once to know the cause and , consequence of youth employment in
the study area. Based the researcher 30 respondents or sample on total population on these the result
presented as follows.

4.1 Back ground of the participants

The demographic characteristics of the respondent were analyzed by using sex, age religion educational
level and may be mental status.
Table 1 on sex’s distribution of partners

Sex No participant Percent

Male 20 67%

Female 10 33%

Total 30 100%

Table 2 age distribution of respondents

Age Frequency Percentage

15-19 5 16.67

20-29 15 50

25-amd above 10 33.30

Total 30 100

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The age structure of the participant in the above table indicate high rate of unemployment registered to
age group of 20-29 years old followed by 25 and above years which is 50% and 33% respecting . This
impairs there productive population is employed.
Table 3 religions status of participant

Religion Frequency Percentage

Orthodox 25 83.3

Muslim 3 10

Catholic 0 0

Protestant 2 67.7

Total 30 100

As shown above most of respondent are orthodox Christians with 25(83%) followed by Muslims with
3(10%) and protestant followers cover 2(7%) respectively.
Table 4 marital status of the participants

Currently married Frequency Percentage

Un married 2 7

Widowed 28 93

Divorce 0 0

Separated 0 0s

Total 30 100

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The data above indicates the respondents who are married currently are around 28 respondents with
93% and married are around 2(respondents) with 7% on the participants. According to the data the
marriage is unthinkable without job since it costs for marriage ceremony.

Table 5 educational level of participation

Level of education Frequency Percentage

Illiterate 2 6.66

Read and write only 2 6.66

Gread1-8 5 16.6

9-12 10 33.33

Diploma 6 20

Degree 5 16.6

Total 30 100

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As it is dram in the about table the youth from grade 9-12 (10) individual 33.3, and diploma level
participant is (20(6) degree 5(16.6) grade and write only 2(6.66) respectively home their own extent
of unemployment with their respective education level. But in the above fame the researcher concludes
youth secondary level education (9-12) is more probably employed in the city.

4.2 Cause of youth unemployment in the study area

The problem of unemployment is increasing from time to the because of the increasing number of
youth Joined to labor force after completing their higher and secondary education as well as
migration of youth from one area to answer for search of better payment.

Table 4.5 cause of youth unemployment

Does lack of job opportunity could be cause of youth Frequency %

Agree 8 26.6

Disagree 3 10

strongly agree 15 50

strongly disagree 4 13.3

Total 30 100

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As the above table 1.1 shows that job opportunity in the area in very low with higher number of youth
unemployment. In the other 15 participants from the total of 30 or 50% strongly agree by the reason. And
8 or 26.6 respondents respond agreed and 3 or 10 of the respondent disagree and 4 respondents or 13.3 of
the respondent strongly disagree.
Table 7 Mismatch of interest and a reliable of job may could be a case of youth unemployment

Mismatch of interest and a reliable of job may could Frequency %

Agree 14 46.6

Disagree 5 16.6

strongly agree 10 33.3

strongly disagree 1 3.3

Total 30 100

Based on the table at the above 14 respondents from the total of 30 or 46.6% of the respondent agreed that
mismatch of job interest could be one of the case of youth unemployment Additionally, some educated
respondents argue again the mismatch of interest and job availability in the study area is cause for
joblessness. 16.6 % of the respondent dis agree by the issue, 33.3 of the respondent strong agree by the
reason and finally 3.3% of the respondent strongly disagree by the reason.
Table 8 For how long you become unemployed

Time period Frequency Percentage

1-6 month 10 33.3%

7-12month 12 40

Above 12month 8 26.66

Total 30 100%

20
On the above table the researcher can concluded that most of the youths are unemployed for half year but
no more frequent unemployed youth more than one year. Hence, 12 respondents for sample 40% of the
youth are unemployed for 7-12 month, 10(33.3) of youth again them unemployed for 1-6 month half year
and lastly 8(26.66 %( are unemployed from above 12 months.
Table 9 What external factors do you think cause for your employment?

Factors Frequency Percentage

Family 8 26.66

Government 12 40

The area of youth live 7 23.3

Others factor 3 10

Total 30 100%

21
According to the above table external factor affect the youth employment as follow as 12(40%)
government, 8(26.66%) family, 7(23.3) the area are youth live and 10% other external factors even
though the government now current job opportunity for us there some administrative and managerial
problem employment system”. Also the other factors for youth’s being unemployed is the pressure of
peer to participate in drug using and release formers job and become unemployed.

4.3 Consequence related questions

unemployment has been the economic consequences Frequency %

Agree 6 20

Disagree 2 6.6

strongly agree 22 73.3

strongly disagree 0 0

Total 30 100

22
Based on the above table 6 or 20% of the respondent agreed that youth unemployment has economic
consequence and 2 or 6.6% of the respondent dis agree by the issue. 22 of the respondent from the total
30 or 73.3 of the respondent strongly agree by the reason and no one or 0% of the respondent strongly dis
agree.
Table 11 does youth face social problems because of your unemployment?

does youth face social problems because of your Frequency %

Agree 15 50

Disagree 4 13.3

strongly agree 10 33.3

strongly disagree 1 3.3

Total 30 100

23
Based on the data at the above 50% of the respondent agree that youth unemployment have social
consequence. And 13.3% the respondent disagree by the consequence, and 33.3% of the respondent
strongly agree by the consequence. And only 33.3% of the respondent strongly disagree by the
consequence.

Table 12 Youth unemployment have Psychological problem on youth

Youth unemployment have Psychological problem on Frequency %

Agree 13 43.3

Disagree 2 6.6

strongly agree 13 43.3

strongly disagree 2 6.6

Total 30 100

Based on the table at the above 43.3% of the respondent agreed that youth unemployment have
psychotically consequence 6.6% of the respondent disagree on it, 43.3% of the respondent strongly
agreed on it and only 6.6% of the respondent strongly disagree on it. So based on this information youth
unemployment have psychotically consequence.
Table 13 Youth unemployment was make the youth criminal

Youth unemployment was make the youth criminal Frequency %

Agree 15 50

Disagree 1 3.3

strongly agree 10 33.3

strongly disagree 4 13.3

Total 30 100

24
Base on the table at the above 50% of the respondent has agree by youth unemployment have criminal
consequence, 3.3% of the respondent disagree with it. And 33.3% of the respondent strongly agree on that
and finally 13.3% of the respondents strong disagree 0n it.

Table 4.5.9 Youth unemployment has political impact

Youth unemployment has political impact Frequency %

Agree 8 26.6

Disagree 5 16.6

strongly agree 12 53.3

strongly disagree 5 16.6

Total 30 100

25
Based on the table above 26.6% of the respondent agreed that youth unemployment have consequence on
political. 16.6% of the respondent disagree on it and 53.3% of the respondent strongly agreed on it.
Finally, 156.6% of the respondent strongly disagree with it.

4.4 External factors of youth unemployment

Government, family and peers are external factors which influence the employment of youth. As they
affected negatively in which peers pressure that initiate to consume drugs and leads less hard work.
Similarly, family background also is the dominant factor for youth unemployment in which youth in poor
family are less likely employed than on youth in prosperous family background. Again, government also
fail to create job opportunity for youth who complete education .And also the government fail to
management and youth labors force administration system.

4.5 Measures and extent of youth unemployment

Response Frequency Percentage %

Yes 23 76.66

No 7 23.44

Total 30 100%

26
In the above table the response by most of respondent’s research is balanced to the increment of
unemployed population as respondents, the basic reason for joblessness’ is the high population.
Additionally, the incensement huger educate in centers contrib. growth to job youth in the town.

As interview held with youth’s association leader the cause for increment unemployment is there
initiative to create and search for job by themselves but youth wait for governments hand to employ them.

4.5.1 Measures to reduce extent of youth unemployment

At wolaita Sodo town level to reduce unemployment the administrative and the office work says we
wising the unemployed and letting them to get job by organizing and giving credit, to start some job
like cobblestone project read construction, wood work food manufacturing after training youth, this
strategy is effect the to reduce on employment.

Again the researcher try to ask some youth who are employed is short periods before says “we are
getting credit for job opportunity and the government create a workers for youth to create our own job
than waiting the government.
Table 15 variation of unemployment with

Response Frequency Percentage %

Yes 15 50

No 15 50

Total 30 100%

27
In the above table indicated, the youth respond to the variation of unemployment happen on the youth
who work in construction work and other terminating jobs cause for job lenses for certain period of time.

As most youths respond the government take great and unscramble measures to reduce unemployed
population by creating different job opportunities for the females and males. The measures taken
support for example are organizing to work on construction textile works, food manufacturing and other.

Table 16 attempts of create thrown job

Response Frequency Percentage %

Yes 8 26.66

No 22 73.33

Total 30 100

28
As indicated the above data 8(26.66) of the respondents did not think to create their own job. So, we can
generalize that most youth do not attempt to create job opportunity because of they do not have ability
and capacity.

4.6 Unemployed youth’s relationship with family and community

As we know person without job may not have good relation with others and they come out of norms and
cultures of the community what Weber called normlessness or anomie.

In addition to the above finding the data gathered through interview analyzed as follows.

The role of government mitigating the problem through different mechanism

Based on the information collected through interview from the respondent government has a tremendous
role in mitigating the problem by using different mechanism. The mechanism by which government uses
to solve the unemployment problem such as, organizing the youths to work coble stone, organizing in
small and micro enterprise. The government also gives birr in the form of revolving loan and promotions
to start up their own business what they wish and want to do. The other mechanism by which the
government use to solve youth unemployment are though providing entrepreneurship training and
through awareness creation. This is very important to the unemployed to develop experience and also
strengthened their capacity to start their own business or to be creative. It is mainly an important means to
the unemployed not to expecting jobs from the government rather they are wising to create their own
jobs. In general, from the finding we can deduce that the government of Ethiopia do not remain silent to
solve this worse problem rather it tries to solve the problem by taking different action and effort by using
the country potential resources.

CHAPTER FIVE
29
 5. CONCLUSION AND RECOMMENDATION

5.1 Summary and conclusion

Based on the finding the researcher gives his own conclusion; youth unemployment widely spread in the
study area. Here the major cause of youth unemployment is lack of job opportunity lack of initiation and
interest, termination a contract or seasonality of jobs, poverty and lack of awareness and population
increment that join in to labor force.

The consequence of unemployment in study area includes economic hardship, social problems,
psychological, physical, health related problems rise of crime, increase dwellers of street and it led youth
to consume drug lastly, youth un employment hinder economic growth of the country.

Additionally, different measures should be taken by different governmental organization to reduce youth
un employment by creating job opportunity, creating awareness greatness of every job that my generate
income, and the government and non-government organization town give loans to reduce the joblessness.

5.2 Recommendation

Based on the finding of the study the researcher recommended the following points in order to reduce
problem of unemployment at all city part. There are different problem that occurs incidentally due to
political, economic social issue. However, the researcher recommended to the city administrations well as
the whole community and youth as follows:

• The town administrate should have additional vocational training for jobless individuals showed
and indicate the way how to creates self-employment.
• Government and small enterprise and industry bureaus should be giving technical advice for
youth in order to improve the production capacity.
• The government’s responsibility to provide loans for youth with low rate of interest.
• Should encourage other un employed youth and to create job opportunity for themselves
• Educational policy also revised to increate job creativity.
• Youth should create and search their own job than waiting government.
• Community should assist youth to get job opportunity and government have to diversity job
opportunity
• Government should give interpersonal training,

30
31
 Reference

 Abebe, Y., & Ayalew, T. (2017). Determinants of youth unemployment in Ethiopia: Evidence
from the Ethiopian Urban Employment Survey. African Development Review, 29(3), 358-370.
 Alemu, A. A., & Adugna, L. (2019). Determinants and consequences of youth unemployment in
Ethiopia: Evidence from the Ethiopian Urban Employment Survey. African Journal of Economic
and Management Studies, 10(3), 371-387.
 Central Statistical Agency (CSA). (2019). Ethiopian Labor Force Survey Report 2018. Addis
Ababa, Ethiopia: Central Statistical Agency.
 Desalegn, Z. G., & Mengistu, A. A. (2017). Determinants and consequences of youth
unemployment in Ethiopia. Journal of Economics and Sustainable Development, 8(4), 1-17.
 Dibaba, B. (2018). Causes and consequences of youth unemployment in Ethiopia: The case of
Adama City. International Journal of Economics, Commerce and Management, 6(8), 137-146.
 Ethiopian Development Research Institute (EDRI). (2016). Employment and youth livelihoods in
Ethiopia: Results from a 2016 survey. Addis Ababa, Ethiopia: Ethiopian Development Research
Institute.
 International Labour Organization (ILO). (2020). Global Employment Trends for Youth 2020:
Technology and the future of jobs. Geneva, Switzerland: International Labour Office.
 International Monetary Fund (IMF). (2021). Regional Economic Outlook: Sub-Saharan Africa.
Washington, D.C., USA: International Monetary Fund.
 Ministry of Labour and Social Affairs (MoLSA). (2020). National Youth Employment Strategy:
2020-2025. Addis Ababa, Ethiopia: Ministry of Labour and Social Affairs.
 Tesfaye, A., & Tadesse, B. (2018). Determinants and consequences of youth unemployment in
urban Ethiopia. International Journal of Academic Research in Business and Social Sciences,
8(12), 167-185.
 United Nations Development Programme (UNDP). (2021). Human Development Indices and
Indicators: 2021 Statistical Update. New York, USA: United Nations Development Programme.
 Wolaita Sodo City Administration. (2022). Socio-economic Profile of Wolaita Sodo Town.
Wolaita Sodo, Ethiopia: Wolaita Sodo City Administration.

 Central statistical authority .2004. In-depth analysis from the 2000 population and housing census
of Ethiopia.

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 Central Statistical Authority .2004. Report on urban Bi annual employment unemployment
survey. Addis Ababa.
 Asghar Mohammed .2002. Economic stress main causes of rising suicides cases. Dawn 27,
 Blakely JA. Callings ScD, Atkinson J 2003. Unemployment and suicide evidence for cause of
association.
 Gordeney RD .2001. Nervous and depressive symptoms in longitudinal study of youth
unemployment at selection a exposure of adolescence
 Jacobson, S .2000. Technical change of employment and technological dependence Sweden.
 Britt CL .2002. Crime and unemployment among youth in the United States 1958-1990.
American journal of economics and sociology.
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 Tsegaye G/kidan T /selassie etal Ethiopia in youth and their labor market prospects internet
05/03/-15/

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 Apenndex

Wolaita Sodo University

College of business and economics

Department of management

Questionnaires

Background questioners (information)

Dear respondents these questionnaires are designed to collect information on the cause and consequence
youth unemployment in wolaita Sodo town so, your role and contribution, here is to provide information
appropriately and accurately as much as possible.

I kindly request to answer the question as follower for your answer please put “√” and not need of any
address related information.

Part one Background information of the participant

1. Sex male female

2. Age 15-29 20-24 25 and above

3. Religion orthodox Muslim catholic protestant

4. Marital status: currently married widowed divorced separated unmarried

5. Education level Illiterate only read and write grade 1-8

Grade 9-12 diploma degree and above

Part two questions related to cause of youth unemployment

• Does lack of job opportunity could be cause of youth unemployment in your locality?

Agree disagree strongly agree strongly disagree

34
• Mismatch of interest and a reliable of job may could be a case of youth unemployment

Agree disagree strongly agree strongly disagree

• For how long you become unemployed

1-6 months 7 -12months above 12 months

• What external factors do you think cause for your employment?

Family government

The area you live other factors

II. Consequence related questions

Because of your unemployment what consequence you face please but sign “x” for the problem you
faced.

• unemployment has been the economic consequences on youth?

Agree disagree strongly agree strongly disagree

6. does youth face social problems because of your unemployment?

Agree disagree strongly agree strongly disagree

• Youth unemployment have Psychological problem on youth

Agree disagree strongly agree strongly disagree

• Youth unemployment was make the youth criminal

35
Agree disagree strongly agree strongly disagree

• Youth unemployment has political impact

Agree disagree strongly agree strongly disagree

Questions related to extent and necessary measures for youth unemployment reduction

• Do you think youth unemployment is increasing?

Yes No

• If question number “2” is yes why? Please write down reasons

• What do you think the measures to reduce the extent of youth unemployment?

• Is there variation of unemployment based on variation in season (month of the year

• If question number “4’ is yes what was be the reasons

• Is there measures taken by government or other concerned bodies?

Yes No

• If question number ‘6’ is yes what measures has been taken?

• Do you ever think to create your own job? Yes No

• How does the relationship with your family, friends and other community?

36
Good bad

IV. Interview questions for officials

• What do you think the major cause of youth unemployment

• Please explain how government and non-governmental organization can play their role on the
reduction of youth unemployment

• What impact are on the development process as result of youth unemployment

• What mechanisms has your office use and design to mitigate youth unemployment

• How do you evaluate the role of small and micro financial institution in reducing youth
unemployment?
• What are the major consequences of youth unemployment?
• How do you think the trend in the level of youth unemployment? What are the factors?

What do you think the mitigating measures to reduce the extent of youth unemployment in the city?

37