THE EFFECT OF UNEMPLOYMENT ON STANDARD OF LIVING IN UPPER WEST (WA MUNICIPAL PRECISELY)

CHAPTER ONE

 INTRODUCTION

1.1                 Background

Unemployment is a situation where people are without work and actively looking for job (ILO, 2010). West africa has fastest growing youthful population in the world. Over 20 percent of its population is between 15 to 24 years. According to the ILO youth make 36 percent of the total working-age population and three out of five of Africa’s unemployed are young people (ILO, 2010). It is estimated that the youth age between 15 and 25 years make up more than 60 percentage of the total population in Africa and 45 per cent in the labour force are youth. Youth as the proportion of the total population was estimated to be over 75 per cent by 2015, and this is as a result of high fertility rate and demographic momentum. It is expected that the increase in youth population would not decrease before 20 years or more.

In Africa 133 millions young people (more than50 percent of the total youth’s population) are illiterate (ILO, 2010). Many youth lack basic skills or have little and are excluded from both productive economics, social and political life. Some who had little formal education have skills irrelevant to current demand in the labour market, in situation where educational and skills requirements are increasingly needed resulting in more millions of unemployed youth. The incidence of youth unemployment in west africa is estimated at 20 per cent.

Unemployment has numerous consequences of equity, social stability and self-esteem, poverty eradication (African Economic Outlook 2012). The government of ghana has no definite policy as regards to youth employment, the Ministry of culture, youth and sports deals directly with issues challenging the youth, while the ministry of public service, labor and human resource development deals with issues concerning vocational trainings, the Ghana vocational training policy 2008. This was established in order to enhance practical skills for the labor market and self-employment in order to meet the changing technical demands for the social and economic advancement for the youth in Ghana.

This research will focus on the effect of youth unemployment on standard of living in upper west (Wa municipal). The researcher will use people’s perceptions to find out the real youth unemployment and the overall unemployment rates for analyzing the impacts of youth unemployment on standard of living in Ghana.

1.2                 Statement of the Problem

Youth unemployment is one of the macroeconomic problems facing West africa, according to international labor organisation (ILO, 2010). It is a major concern in Ghana as it poses numerous challenges to the country’s economic growth (African Economic Outlook, 2012).

According to studies conducted in other countries such as Somalia, Uganda, USA, South Africa, Kenya, EU, South East Asia the impacts of youth unemployment include; loss of income, loss of government revenue (tax), increased dependence, increased divorce, social isolation, high crime rate, family tension, erosion of self confidence and self-esteem, mental depression, drug abuse, homelessness, poverty, early school dropout, Alcoholism, rural-urban migration and ill health among others.

Also the effects of unemployment on earnings is that long term unemployment leads to reduced future earnings of individuals and other factors such as education, gender, experience, place of residence affect the levels of income for individuals.

As per the available literature on the effects of youth unemployment and its effect on the earnings in Ghana, there existed a knowledge gap since there has been no study carried out on the impacts of unemployment on standard of living. This is the gap this study aims to cover.

 

1.3                 Research Questions

The study seeks to answer the following research questions.

1. What is the effect of youth unemployment on standard of living in Wa municipal?
2. What other factors affect income in Wa municipal state?

1.4                 Objectives of the Study

The general objective is to examine the effects of youth unemployment on the standard of living. The specific objectives are:

1. To find out the effect of youth unemployment on standard of living in Wa municipal
2. To investigate the effect of other factors on income Wa municipal

• To draw conclusions and provide policy recommendations on the findings of this

 

1.5                 Scope of the Study

The study will look into the population about the perceptions of unemployment status, understands the extents and nature of youth unemployment, reducing youth unemployment, major factors contributing to youth unemployment, the impacts of youth unemployment on earnings and provides a platform for policy makers on in-depth analysis in order to conform with projects and programs designed to eradicate youth unemployment.

 

Upper west Wa municipal is chosen because of the alarming rates of youth unemployment in the recent years, lacks of effort from the central government’s programs and projects that will create jobs for the increasing youthful population in the city. The study will focus on the impacts of youth unemployment in upper west wa municipal state. The conclusions shall be used to generalise the impacts of youth unemployment in Upper west (Wa municipal) State and Ghana in general.

1.6                 Significance of the Study

 

The study will contribute to the understanding of unemployment from academic perspective particularly the effects of youth unemployment on income/earnings and it will helps the policymakers’ in the quest for desirable policies targeting states as unemployment is concern.    In addition, the study will contribute to the available literature and it will acts as the advocacy for the unemployed in Ghana. Finally, the findings and conclusions’ for this study can be used as the basis for further research on the area of unemployment.

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