……………………….

UNIVERSITY

COLLEGE OF BUSINESS AND ECONOMICS

DEPARTMENT OF ECONOMICS

AFFECT OF UNEMPLOYMENT IN BAKO TIBE TOWN (ACASE STUDY OF BAKO)

A RESEARCH PROPOSAL SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE AWARD OF BACHELOR OF ART DEGREE IN ECONOMICS

By:-AMSALU BIRU

ID No:

ADVISOR: …………………. (MSc)

June, 2012

Bako, Ethiopia

1
ACRONYMS

CSA= central static authority

ILO=International labor origination

LFOSBCSA= Labor Force Survey by Central Statistical Agency

NGO=non-governmental organizations

OCED =organization for economic co-operation and development

LDC= lower developed countries

MOLSA=ministry of labor and social affairs

2
TABLES

Table -1 Age category…………………………………………………………………..

Table -2 status…………………………………………………………………..

Table -3 educational background …………………………………………………………………..

Table -4 family background…………………………………………………………………..

Table -5 reason 1       …………………………………………………………………..

Table -6 reason 2…………………………………………………………………..

Table -7 wish to earn…………………………………………………………………..

Table -8 problems…………………………………………………………………..

Table -9Consequences of Unemployment……………………………………………………..

Table -10 Statement…………………………………………………………………..

Table -11 Area of training…………………………………………………………………..

3
Abstract

Unemployment had been a serious problem of international economy from the period of great
depression where higher level of unemployment existed in the world. The present study was
under taking to find what cause and consequence of unemployment in Bako city is the serious
problem in finding of jobs.

The major time being of the research, include the characteristics (compositions) and the
structure of unemployment of the study area cause of unemployment some social and economic
political consequence of unemployment.

4
Acknowledgement

First and for most almighty God ,the provider the all knowledge for going me the opportunity to
successful completion thought my paper work I would like to express my sincerely thanks to my
advisor ………………….. (MSc) for his constructive goodness advice and fairly full
suggestions and comments which help me to organize the paper at this form.

I would also like to express my deepest gratitude to my family to brother and sister
especially for helping me by pray and morally .Last but not least, I would like to thanks to all my
friends that extend that me to for the paper accomplishment of the research paper.

5
 Table of Contents

Content Page

Chapter one

1.1 Background of study…………………………………………………………………..

1.2 Statement of the problem…………………………………………………………………..

1.3 Objective of the study…………………………………………………………………..

1.4 methodology of the study…………………………………………………………………..

1.4.1 Data collection method…………………………………………………………………..

1.5 Significance of study…………………………………………………………………..

1.6 scope of the study…………………………………………………………………..

Chapter two…………………………………………………………………..

2.1 Theoretical literature review…………………………………………………………………..

2.1.1 Definition of urbanization and unemployment and types………………………………..

2.1.5 Theories of unemployment…………………………………………………………………..

2.1.3 Special Features of youth unemployment………………………………………………..

2.1.4 The Magnitude and Nature of urban Unemployment I n Ethiopia…………………………

2.2 Empirical literature…………………………………………………………………..

2.2.1 Unemployment in Ethiopia…………………………………………………………………..

Chapter 3…………………………………………………………………..

3. Data analysis and Presentation of Results……………………………………………………..

3.1 Back Ground Information of Respondents……………………………………………..

6
3.2 Causes of unemployment…………………………………………………………………..

3.3 consequence of unemployment……………………………………………………………..

3.4 Possible solution of the Urban Unemployment Problem……………………………………..

Chapter four…………………………………………………………………..

4. Conclusion and recommendation……………………………………………………………..

4.1 Conclusion…………………………………………………………………..

4.2 Recommendation…………………………………………………………………..

7
CHAPTER ONE

1.1 Background of study

Now many developing countries are unique combination of massive rural urban population
Movement stagnation of agriculture productivity and growing urban rural unemployment is one
of the critical socio economic problems facing the least developing countries like Ethiopia While
the labor force growth is adequate to observe labor market entrants as result youth are more
affected by unemployment. According to the international labor organization (ILO) is defined as
the pool of above a specified age that are without work but seeking work and available for Work
during period of reference. All the three condition must be present for a person to be considered
as unemployed. The problem of youth unemployment is high in June 2020 especially Oromia
region youths unemployment is 18,2%,for male 10,6%and female 25,7%. The rapid population
growth and high level of rural urban migration contribute to high level of total unemployment
population is 1,653,685 which female 1225,770 and male 427,915.

According to this urban area 894,177 and rural area 759,508 (unemployment by gender and age
by of (CSA2010) .Low returns to labor as well as high unemployment indicate poverty. Which in
turn makes difficult to invest in education and healthy that would increase a person productivity
and economic development .Unemployment youth people tend to concentrate urban area the
social aspect of the problem lies in the association of unemployment with social exclusive and
sense of hopelessness. The inadequate employment situation of youth has a numbered of socio
economic, political and moral consequences .unemployment implies the failures to make use of
important factors of production for fostering economic growth.

1.2 Statement of the problem

Most of the time major problem faced by the people is the problem of unemployment and urban
unemployment of development, population growth has a great impact for the expansion of urban
unemployment and rural unemployment, specially this problem has been seeking in lease
development. It creates economics and social problems that prevent development become
stronger (Todaro,2009).Unemployment is the macroeconomics problem that affects people most
directly and seriously, for most people, the loss of a job means a reduced living standard and
psychological problem. It is no surprise that unemployment is a frequent to piece of political

8
debate and those politicians of the claim that their proposed policies would help create jobs
(Mankiw, 2010). In 1950 Ethiopia had a population 15 million in 1990 it had an estimation and
population of 63 million out of which 52 million live in rural area, the reaming in urban area
with population projection to be 169 million people in the year 2050,

The number of rural urban migration and hold tremendous implications for the proportion of
those who will be entering the working age group can be affect there sample size. Similarly in
Bako city the problem of population growth and underemployment growth is since in 2000.
Bako had population projection of 100,508 in 2009 had an estimated. Population projection of
193,473 out of which 108,583 are working age population with populations with population
projection to be 202,162 in year 2010. From 70,005 economically active population local
unemployment in 2009 in 15,107 of which 8997 are female in this year unemployment rate for
male and female is 18,8 and 24,6 respectively in the same year unemployment rate among 15-19
age group ,20-24 age group and25-29 age group are 27% and 24,55 respectively (CSA 2005)
now day it estimated ,

That about 101,000 populations live in Bako .Among these population 40% are unemployed
(CSA ‘1997) such crucial problem limited the study to look at problem of both population
growth and their consequence on socio economic activities of the city. This all figures show the
effect of growth of population to unemployment problem in rural and urban area .most of the
researchers concerned on cause, problem of population growth city, push, and pull factor of city.
I will want to show or paper is found out the dimension, cause effect and consequence of youth
unemployment in urban area specific in Bako town.

1.3 Objective of the study

General objective my study is assessing problems of unemployment in Bako town

The specific objective can be

1. To analyses the causes of unemployment

3 .To examine the consequences of unemployment problem In Bako town

4. To come up with some possible solutions for the problem

9
1.4 methodology of the study

1.4.1 Data collection method

This study was as use primary source of data and In this type of data collection the researcher
was use questionnaire because questionnaire is the most .Popular sources of data gathering
instrument the questionnaire was having moved closed ended types of questions, this because
closed ended types of questions was standard answers and can be compared from person to
person. In the study, the researcher uses simple random sampling technique, these because in
simple random sampling each unit of the population is giving an equal chances of being selected
male and female. The researchers took 45 respondents of the town with skill and without skill
.They are 15 men and 25 women unemployed .the total numbered in town are estimated about
193,515. The reason is manageable and financial and time constraints in the year of 2011 out of
5950 male youth unemployed ,the remaining are 11697 female youth unemployment .there for
45 unemployment people are randomly selects from 01 Keble and 02..the questioner distributed
the version of Afaan Oromoo.

The study was analyzing the data through tabulation and percentages. Most of respondents
answered there question are change in to numbered and percentage. Primary data is collected
from individual unemployed person and analyzed by using descriptive methods.

1.5 Significance of study

The study is significant for several reasons, among other to mention too few. The study deals
with the problem of rapid population growth and unemployment .which is the main problem of
development ,therefore such study may help policy makers and other respective on their offer to
achieve better resource allocation in general and reducing unemployment particular .

1.6 scope of the study

As regard to the coverage or scope of the study, urban area with a particular emphasis of Bako
town is taken as a point of reference .Among the major played youth in city due to different
reasons such as migrating from the rural area to get job and education service, because of the
concentration of these service mainly concentrate in place like Bako.

10
CHAPTER TWO

2.1 Theoretical literature review

2.1.1 Definition of urbanization and unemployment and types

Urbanization is the increase in the proportion of people living in town and cities. A cause of
urbanization occurs because people move from rural areas (country side to urban area, towns and
city).this usually occurs, when a country is still developing.

The three main causes of urbanization in low developed countries since 2005 are

1. Rural to urban migration is happing massive scale due to population pressure and lack of
resources in rural areas this are “push factors”.

2. People living in rural area are “pulled” to the city often they believe that the standard of living
in urban area will be much better than in rural area usually wrong people also hope for well-paid
jobs.

3. Nature increase caused by a decrease in death rates while birth rate reaming high. Since 1950
urbanization has slowed in more economically developing countries and now some of the biggest
city are losing population ad people move away from the city .to rural environments. This known
counter urbanization. Counter urbanization is the movement of people out of cities to the
surrounding areas, since 1950 this Process has been occurring in more economically developed
countries. (www.ral.ucar.edu/staff/prlankao/GRHS-2011-ISUES paperfinal.pdf/source).

Unemployment is a situation in which workers are, jobless because there, is no work for them to
do each if they are prepared because there is no work for. Them to do each if they are prepared to
and would accept lower wages .the measurement of unemployment is based on the following
three criteria’s that must be satisfied simultaneously “without work” current available for work
and “seeking work” the standard definition o f unemployment is based on the “seek work”
criteria that can be interpreted as activity or efforts undertaken By prior .unemployment is
measured by taking in to account the labor force which is the sum of employed Plus that of
unemployed .those who are unemployed are without work but are actively searching for work,

11
the employed ones are those who are working at least one of hour in a week for pay an unpaid
work per week in family business (Mankiw 136-143)

NU
UR= X 100
LF

UR=unemployment rate

LF=labor force

NU =number of unemployment

Types and cause of unemployment

Smith 2000 and most of scholars have identified four types of unemployment with their
respective cause.

1-seasonal unemployment; Is caused by both supply side and demand side seasonal fertilities
seasonally .variations in products Demand, such as seasonal fertilities, planned to variations and
the demand for labor assisted in the production Of that commodity .production seasonality from
the supply side and such as has tin of agriculture produce Lands to the seasonal variation in
above demand(Smith 2000).

2- Cyclic unemployment or demand deficient ;Is caused by unemployment arise due to

inadequate effective aggregate demand .gross Domestic product may not be as high potential
output of demand shrink due to expectation with Discourage private investment spending, low
government spending or high taxes ,no private consumption. Low exports, net import, under
demand deficient unemployment cyclic condition. The number of unemployment worker for
exist the number of job vacancy or available jobs (Smith, 2000).

3-Frictional unemployment; Caused by lack of necessary skill for doing a particular job,
immobility of labor, breakdown of machinery ,Shortage of raw materials and change in
technology of product .the amount of friction of unemployment Depends on the frequency with
which workers change jobs, and the time it takes to find new once when Workers are free to guilt
their jobs. However, some frictional unemployment will always present if economy at full
employment (ibid).

12
4. Structural unemployment: has caused by lack of knowledge on the particulars of employers
about the availability of workers or off workers about the availability of jobs. this is involves a
mismatch between the workers looking for jobs and vacancies availability .even though the
number of vacancies may be equal to the number of the unemployed ,the unemployed workers
look the skills needed for the jobs in the wrong part of the country take the jobs offered (ibid).

2.1.5 Theories of unemployment

The four major theory of unemployment has discussed of the following (Smith 1997.)

A-classical theory of unemployment

Main characteristic of this theory is that the labor market force of supply and demand respond to
change in the real wages beginning and remaining too high to allow the labor market to clear
,government wage lariat and trade union are identifying as significant casual factor
consequence ,unemployment in the classical system realized up on markets not clearing ,the
polices recommendation forward from classical analyses of unemployment in that reduced
government regulation and reduces trade union power to make labor competitive in the
market(smith 1997.)

B- neo-classical theory of unemployment

The neo- classical economical school focused on choice on techniques. That a best cost of
minimization boundless of factor production, thus Approach a voids focusing on the social
possess which determines incorporation of labor power in to production; labor and capital Are,
reviewed as factor price wise, the relative cheapens of capital in relation labor on the terms of
technological consideration related to the non –sustainability of the capital for labor or what has
been dominated of production problem. (ibid)

C- Keynesian theory of unemployment

Keynesian economics emphasize the aggregate condition of economic and labor force
disequilibrium that emerge from the instability of market force re stabilization full employment
equilibrium Keynesian recognized some unemployment on job to other (Schervish 1983). Never
tresses in the work of the great person keynes(1936).Formulated his history of involuntary

13
.unemployment in which workers are an ability to located job even when offering to work at the
labor lags because the demand for goods and services land to behind to the capacity of economy
to produce them (ibid)

D-Marxist theory of unemployment

Marxist analysis like the Keynesian approach is at the aggregate level “in the Marxist traditional,
unemployment derives from the Marxist traditional ,unemployment derives from the general and
normal anarchism of the market economy in which what power beneficiary for an individual
firm is distinction for the system as whole “this individual firms maximize profit and enjoy
their must efficiency production at level of employment that fails to provide employment for
forces as whole (Scherivish 1983)

2.1.3 Special Features of youth unemployment

The figures on youth unemployment conceal crucial differences across different groups of
youths, such as urban youth, young women and those with lower educational attainment.

A. Urban vis-à-vis rural unemployment; the preceding discussion of youth unemployment

conceals crucial differences across rural and urban areas. Like the entire population, the majority
of youth live in rural areas. It was shown above that rural participation rates were much higher
than urban participation rates. Open youth unemployment appears to be characteristic of urban
centers, and rose sharply between 2000 and 2001. In contrast, the youth unemployment rate in
rural areas was only 0.7 per cent in 1984, 1.2 per cent in 1994 and 7.2 percent in 2005. These
findings are consistent with those of Gebreselassie and Krishnanz (2002) who report sharply
rising youth (15-29 years old) urban unemployment between 2000 and 2005. We are reminded
that unemployment is typically not an option in rural area

B. Unemployment by gender; Women have lower participation rates and face higher level of
unemployment compared to their male counterparts. Empirical evidence indicates that the
unemployment rate among young women (20-24) was 38.7 per cent while it was only 23.2 per
cent for young men in that age category during the same year.31 These figures stand in contrast
with the general trend for the Sub-Saharan region, where the unemployment rates for young men
(23.1 per cent) exceed those for young women (18.4).32 The unemployment rates for the total

14
labor force, youth and urban youth, disaggregated by gender, are. The data indicate that women
experience higher levels of unemployment than their male counterparts in Ethiopia. This is
consistently true for all working age groups (10 years and above), for all youth (both urban and
rural youth) as well as for urban youth across all reference periods. This coincides with the
findings on rural vs. urban unemployment. Unemployment rates have increased more for women
than for men over the five years prior to 2004. In 1999, the youth unemployment rate among
women was 17.3 per cent, compared to 6.8 per cent among men. The urban female youth
unemployment rate was 43.7 per cent compared to 29.4 per cent for urban male youth. This
concurs with the findings from MOLSA data on registered job seekers. In 2003, female job
seekers accounted for 56 per cent of the total registered job seekers.33 this upward trend in
unemployment is, in part, a consequence of the increased participation of women in the labor
force and in education.

C. Unemployment by educational levels; It has often been argued that unemployment is high
amongst educated youth in developing countries. The empirical evidence is mixed, however.
O’Higgins (1997, 2003) reviews the experience of various countries and argues that there is no
strong evidence to support the existence of widespread educated unemployment in developing
countries. The rates of return to education are substantially higher in developing countries than in
the OECD, and all evidence counters the notion of an impoverished and disadvantaged group of
educated young people in developing countries. For Ethiopia, it is clear from the numbers in
figure 15 that there are higher levels of unemployment for those with lower levels of education.
The same picture emerges for youth. The figures reveal some unemployment amongst educated
urban youth. Highly educated (beyond Grade 12) unemployment constitutes only a minimal
proportion of the total unemployed in both rural and urban areas. This is also reflected in the data
from registered jobseekers data registered unemployed people, 14,701 (62 per cent) had some
form of secondary school education. A recent survey of unemployment in urban areas reveals an
increase in unemployment rates of young people, who have attained high school or a higher
educational level. This could be due to a mismatch between the type of education provided at
schools and the requirements of the labor market.

D. Transitory vis-à-vis structural unemployment: the high incidence of youth unemployment,

its persistence and the long job search time involved lead to discontent and disillusionment

15
among the youth. Moreover, long-term unemployment has Deskilling and scarring effects. Two
alternative theories on structural unemployment among youth exist .The first argues that youth
face a higher incidence of long-term unemployment than adults.

The competing argument is that the unemployment of young people is relatively transitory.
Youths experience a higher level of unemployment rate compared to older people, but this is
because of the tendency of youth to shop around in the labor market. This does not last very
long, however, and youth would eventually have a lower average duration of unemployment than
older people. 1981 indicate that employment in the government (public) sector accounted for
more than 94 per cent of formal sector employment while the share of private sector employment
was less than 6 per cent. Thus, employment opportunities largely depended on the performance
of the public sector during the last regime. Studies, however, indicate that increases in the
employment opportunities in the government sector were extremely low compared to the annual
increase in the labor force (ILO 1986). With the increase in the role of the private sector after the
downfall of the communist military regime in 1991 and liberalization of the economy,
employment in the formal private sector is expected to show some growth. One of the thrusts of
the strategies of the Sustainable Development and Poverty Reduction Programmer (SDPRP) of
the current Ethiopian government is in fact ‘strengthening private sector growth and
development especially in industry as a means of achieving off-farm employment and output
growth. The two major public employers are the industrial sector and the civil service.

The industrial sector consists of mining and quarrying, manufacturing, construction, electricity,
gas and water as well as construction. The largest employer out of these sub-sectors is
manufacturing, in which more than 1.1million people worked in 1999. Moreover, youth are
equally represented in manufacturing compared to establishment of government offices at
regional, district and lower tiers. Owing to the decentralization process, the size of the civil
service has shown significant growth in the 1990s. Total employment in the civil service grew,
on average, by 6.61 per cent per year between 1995 and 2003, providing employment
opportunities to 388,903 people in 2003, which is nearly four-fold the employment in
manufacturing. Employment of youth aged 18-22 grew, on average, by 4.29 per cent per year
between 1995 and 2003, while employment in the age group 23-27 grew by 7.35 per cent per
year. Moreover, both age groups (18-22 and 23-27) together accounted for more than 26 per cent

16
of total employment in the civil service .More than three-quarters of youth work in agriculture,
which is characterized by low productivity and low per capita income. Employment in the
industry sector generally comes with better working conditions as the sector tends to be formal
and protected. Finally, the working conditions in services are mixed depending on the type of
work.

The employment pattern of the youth population is comparable to that of the population as a
whole. In 1999, compared to the entire population, a slightly lower percentage of youth worked
in agriculture and industry, whereas a slightly higher percentage of youth worked in services. It
should be noted that agriculture is characterized by low productivity and low income, several
factors could account for this. Firstly, a slightly higher proportion of youth live in urban areas.
Thus, youth might have a higher propensity to migrate than the overall population, seeking
employment in services and in industry in urban areas. What is more, the growth in services is
likely to also include growth of services in the informal economy.

2.1.4 The Magnitude and Nature of urban Unemployment I n Ethiopia

Unemployment and underemployment continue to be serious social problems in Ethiopia

Despite some improvements in recent years. This is mainly a result of rapid population and labor
force growth and limited employment generation capacity of the modern Industrial sector of the
economy. The national rate of unemployment, which stood at 3.6% in 1999, declined to 2.6% in
2005. Open unemployment is not a common problem in rural areas. Under employment defined
as the proportion of workers who are "available and ready to work more hours” is a phenomenon
of rural areas. However, this does not mean that underemployment is not a problem in urban
areas. According to the Labor Force Survey by Central Statistical Agency, underemployment is
highest among Male youth and prime-age adults, and higher rural areas. In particular, the
underemployment rate of urban male adults aged 25 to 39 stood at 20 to 25 percent in 2005.

The underemployment rate declined beyond the age of 40 at national level as well as for urban
and rural residents (CSA, 2006). High urban unemployment rates remain a major policy
challenge. According to the 2006 Urban Employment and Unemployment Survey, urban
unemployment has consistently declined from 26.2 percent in 2003 to 22.9 percent in 2004 and
further to 16.7 percent in 2006. Unemployment rate has been consistently higher among females

17
than males across the years, 35.2% in 2003, 30.6% in 2004 and 22.1% in 2006. The
corresponding rates for males stood at 17.6%, 15.8% and 11.5%, respectively. Urban
unemployment, particularly youth unemployment being growing areas of concern for the
Government, recent survey programs have been intended to cover only urban areas given that
unemployment is an urban rather than a rural phenomenon. Rural-urban migration is considered
to be the main contributing factor to urban population growth in Ethiopia. There is a widely
shared view that rural-urban migration

In Ethiopia is increasing and is driven by the dwindling amount of farmland available to the rural
population and also by the low level of agricultural productivity. The rural-urban migration has
seasonal behavior and is considerable in different parts of the country. The majority of the
employed labor force is found in the agricultural sector where earnings are low for the labor
force to come out of poverty. A large size of the labor force is also engaged in the informal
sector where underemployment, poor earning, and lack of institutional protection are the
characteristic features. These realities nurture the problem of working poor in Ethiopia, making
poverty more a result of poor earnings than open unemployment. According to CSA’s 2006
Urban Employment/Unemployment Survey, looking at the employed population by major
occupations, nearly three-fourths of urban employed population of the country is engaged in
three almost equally important major occupations: services, shop and market sales workers (25.5
percent), elementary occupation (23.6 percent), and craft and related activities (22.1 percent).
Professionals together with technical and associate professionals make up about 10 percent of the
employed population while those persons working in legislator and senior officials took the
smallest share constituting a mere 2.5 percent of the total employed urban population of the
country .

According to the same survey, looking at the distribution of urban employed population by
employment status of a person (at all-urban level), the bulk of employed population was
constituted by self-employed (42 percent) followed by those employed by government and
public enterprises (19 percent) and private organization (18 percent). As can be seen from Table
1.2, paid employees altogether constituted about 45 percent of the Total working population.
Paid employees consist of employees of government, public Enterprises, private organization

18
and non-governmental organizations (NGOs) and Domestic employees. Unpaid family workers
have a substantial share (10 percent).

According to existing studies, more than 50 percent of urban employment is accounted by the
informal sector. According to the Informal Sector Survey (CSA, 2002), the total number of
persons engaged stood at 997,380 of which 799,353(80%) were operators and the remaining
198027(20%) employees. Women dominate in both categories (operators and employees). The
share of women in the total number of persons engaged, operators and employees stood at 60%,
59% and 65% respectively. As it stands now, the informal sector is not well integrated with the
formal (organized) sector. A vertical and horizontal linkage does not seem to exist within the
respective activities of informal sector operator.

2.2 Empirical literature

employment problem has pointed out in his economic development book that historical the
economic development of western Europe and north America has often been described in terms
of the contentious transfer of economic activity and people from rural to urban area (Todaro,
1994).both within and between countries .as urban industries expanded new employment
opportunity were created and over the same period, labor saving technological progress in
agriculture reduced rural man manpower needs. The combination of the above two phenomena
made it possible for western nation undergo a systematic rural to urban transfer of their human
resources. On the basis of western countries experience many economists concluded that
economic development in third world can be achieved using transfer of manpower form rural to
urban by promoting rapid urban industrialization .whereas when we come to the existing
situation of third world countries the figure is different from that of western countries .

According to O’Higgins, 2001 globally. the problem of youth unemployment is increasing

assuming higher proportions than the adults. recently ILO estimate suggest that at least 60
million young people are without a job and that youth unemployment rates are on average three
times as high as adult rates (ILO, 1998).in countries of the organization for economic co-
operation and development (OCED) the unemployment rate of the 15-24 group in 1998 was
12.9% more than double the figure for adults which stood at 5.7% around 10 million young
people are less figure are less widely available for developing countries. according to the

19
demographic and health survey (2000), tow –third of women and 84% of men who live in urban
areas have been to school, while 41%of women and 61% of men who live in urban area have
reached to secondary level of education .but for more than 80% of Ethiopia’s population that live
in rural areas, educational attainment is substantially lower, with 84% of women and 58%of man
having never attended school, only 2% of women and 7% of men have attained secondary level
schooling in rural areas .residents of the heavily urban areas of the country like Addis Ababa,
Dire Dawa and the Harare region have higher levels of educational attainment especially at the
secondary level or higher. Ndegua and powelson 1973 in most developing countries the working
age population has roughly doubled in the past 25 years. it will double again in the next 25
years ,this growth clearly intensifies pressure on employment and the amount of investment
available per labor market .entrants, worst of all ,in most of the LDCs .40 to 50 percent of the
population is below 15 years of age if the economically productive age bracket is taken as 15 to
65 years. the percentage of population in this category is considerably less in poor countries .this
“bottom heavy “age structure of population result in a higher ratio of dependent to adult workers
(Meier 1995).the implication is that those working must share their incomes with those who
don’t work and this leaves less for saving and accumulation moreover, with high population
growth, a good deal of the national income is spent on the expansion of social services.

Which do not directly generate productive capacity Ghai (1988).in developing countries
although, the figures are less widely available evidence. From variety of source indicates that
there has been deterioration in employment situation, in Africa Asia and Latin America no less
than 40% to 45% of the work force is unemployed /underemployed (Farooq, 1995).it is
important to note that the in those countries is deeply rooted in their socio economic structures
including the demographic base and education and training system.

2.2.1 Unemployment in Ethiopia

In this section, the Ethiopian labor market and studies on unemployment will be reviewed
briefly. The following papers which are conducted on the unemployment situation in Ethiopia
will be discussed: Krishnan (1996) on the role of family background for employment, Dendir
(2000) on unemployment duration, Astatike (2003) on youth unemployment, Serneels (2004) on
the nature of urban youth unemployment, and Haile (2008) on youth self-employment. The
World Bank (2007) has also prepared a comprehensive study in two volumes on the urban labor

20
market situation in Ethiopia. Towards growth and job creation in the face of increasing poverty
and labor supply in urban Ethiopia. Background (especially fathers education)he report
welcomes the government’s effort

Studies addressing urban unemployment in Ethiopia are relatively few and most of those
surveyed in this paper concentrate on youth unemployment. Krishnan (1996) studies the role of
family background and education on employment in urban Ethiopia and finds that family
strongly affects entry to public sector employment but it is not significant in determining entry to
lower status private employment. Entry to public sector employment is also affected positively
by education while age (being older) positively affects being in the labor force.

Dendir (2000) studies unemployment duration in urban Ethiopia and finds that the mean duration
is 3 years for completed spells and 4.7 years for incomplete spells. Astatike (2003), using data
from the Ethiopian Urban Socio Economic Survey from 1994 to 2000, finds high urban youth
unemployment in Ethiopia with more than 50% of the youth unemployed. Between the periods
1994-2000 teen age youth unemployment increased and was higher for women. Those from
families of at least secondary school education are found to be affected less according to this
study.

Serneels (2004), using the 1994 Ethiopian Urban Socio Economic Survey, studies the incidence
and duration of unemployment in urban Ethiopia emphasizing on the youth. According to this
study, in the year 1994 highest in the world with male unemployment standing at 34% and the
urban youth unemployment rate was even higher at 50%. Serneels indicates that mean duration
of unemployment is 4 years and those youth whose parents are civil servants have shorter
durations. It is also indicated that public sector was the top employer hiring one third of the adult
men. A negative relationship is found between unemployment incidence and duration, and
household welfare. There is evidence that households reduce their savings and consumption to
cope with unemployment. With regard to job aspirations, well-educated first time job seekers
who aspire to well-paying jobs are more affected. On family background, Serneels concludes
that effect for labor market performance in urban Ethiopia. Ethiopia urban unemployment rate
was one of the mothers education may play a role but fathers education has strong Denu et al.
(2005/07) study the characteristics and determinants of youth unemployment and
underemployment in Ethiopia from 1984-2001. They conclude that the youth is substantially

21
affected by unemployment and significant differences exist within the youth group across
location (urban-rural), gender and education. The urban youth unemployment stood at 7.2%
while it was 37.5% for the rural, the latter facing high rate of underemployment. Unemployment
for the youth women was 17.3% in 1999 while it was 6.9% for their men counterparts.
Regarding education, 44.5% and 32.6% of the unemployed youth were illiterate or had only
primary education. The paper indicates that the private sector plays a huge role in employment as
a result of policy change by the current government to promote the private

Sector as opposed to the previous government’s policy where most enterprise was government
owned. Using data from the Ethiopian Urban Socio Economic Survey from 1994 to 2000, Haile
(2008) studies the nature of self-and finds that the young, the educated, those that migrate to
urban areas recently and those without parents in self-employment are less likely to be found in
self-employment.for the first the time in Ethiopia The World Bank (2007), with its report in two
volumes, acknowledges important improvements in urban unemployment between 1995 and
2005 though the labor market situation remained unchanged. According this study, the rapid rise
in the urban labor force creates pressure on the labor market and it can be seen as both a
challenge and an opportunity for the Ethiopian government. The rising number of educated labor
force entering the market each year as a result of education expansion and internal migration
necessitate enhanced job creation in the country. Another feature of the Ethiopian urban labor
market indicated in this study is the increasing literacy rate.

This is implicated in World Bank (2011) that the net primary school enrollment rate in Ethiopia
increased to 87.9% in 2010 from 68.5% in 2005. Low wages characterize Ethiopian urban labor
markets although it differs among the type of employers, sector and worker characteristics. Even
though females are relatively less skilled yet, the literacy rate and their participation in the labor
force is increasing. There is labor market segmentation with a relatively wanted public sector and
formal private sector, and a large number of unemployed and a large informal sector with low
wages and mostly occupied by women. Women in urban Ethiopia are relatively more affected by
unemployment and they are paid lower wages (World Bank, 2007). As can be noted, many of the
studies surveyed so far have concentrated on youth unemployment in urban Ethiopia and not
many of them focused on general unemployment. The welfare impact of unemployment in urban
Ethiopia is also found to be less explored. generally it is difficult to measure unemployment in

22
less developed countries such as Ethiopia because of the lack of reliable records and the
existence of various informal types of work ,however ,based on minister of labor survey and
numerous other analyses ,a general assessment of unemployment rate increase by 11.5 percent
annually during the 1979 -1988 period .by 1987/88 there were 715065 registered unemployed
Workers in thirteen –six major town .of those registered 134117 ultimately found jobs ,living the
reaming 580948 unemployed.

The urban labor force totally 1.7 million in 1988/89 the ministry of labor Indicated that
government employed 523000 of those workers .the rest relied on private employment or self
-employment for their livelihood. According to the government, rural unemployment was
virtually nonexistent. A 1981/82 rural labor survey revealed that 97.5 percent of rural labor force
worked 2.4 percent. did not work because of social reason and 0.1 percent had been unemployed
during the previous twelve month .however ,it is important to not that unemployment as
conventionally defined records only part of the story it lives out designed unemployment and
underemployment which were prevalent in both urban and rural areas for instance The rural
labor force survey found 50 %of those working where unpaid family workers what is the
important about unemployment in Ethiopia a that with an expansion of labor force the public
sector with an all ready swollen payroll and acute budgetary problems was likely to absorb more
than a tiny friction of those entering the labor market.

23
CHAPTER 3

3. Data analysis and Presentation of Results

This chapter deals with analysis and interpretation of the data the finding are present based on
the data collected from primary source .the selection start with presentation and analysis of
general characteristic of respondent followed by presentation, analyses and interpretation of the
data result to the research issue.

3.1 Back Ground Information of Respondents

As indicate in the previous chapter  ,respondent are unemployed ,who are found in Bako  city 
.from the total population that the town questioner  was distributed to  25 for  female and 15 for 
male youth unemployment person ,the total questionnaire was to 40 youth unemployed  persons
the general characteristics   of the respondent are illustrated in the following  table

As shown below ,the demographic indicate  as respondent  unemployment  age  among  youth
men are found in the age (15-19 ) 12% and in age ( 20-25) 25 % the total youth male
unemployment  are 37% as the youth unemployment  but the great part of unemployment rate 
covers by female ,age (15-19%)22.5% ,( 20-25)40% the total females unemployment  are 62.5%.

Table -1 Age category

Male Female Total

Age
Respondent Respondent Respondent
Respondent Respondent Respondent
Category in in in
in number in number in number
percentage percentage percentage

15-19 5 12.5 9 22.5 14 35

20-24 10 25 16 40 26 65

Total 15 37.5 25 62.5 40 100

Source: primary source

24
Therefore, when we look the whole of the Bako city unemployment is rate age category. Above
60% of men and women are found in the age group of (20-24) the remain are covers under
40% .in general the data indicates that female has higher experience than men level of
unemployment

Although this  indicate as   the mostly  high Youth employment rates have fallen significantly,
and many youth seem to enter the labor market via low quality so Bako city tray to develop  this
age groups change to join within labor force.

  when we  have seen from the underline table-1  the marital status of the Bako city
respondent .most of the youth unemployed are singe (unmarried )77.5% and the reaming has it is
own  effect the .married 17.5%,household and divorce has 2.5%  it has little impact on
unemployment rate.

Table -2 status

Status Respondent in number Respondent in percentage

Single 31 77.5

Married 7 17.5

House hold 1 2.5

Divorce 1 2.5

Total 40 100

Sources: primary source

Most of unmarried or single person has their own reason behind they haven’t work or the other
means of to generate income to manage their families and the can get enough money from their
family the remain house hold and divorce are the can get or thy depend friends and family

          The underline table-3 show as the  literacy rate among Bako  youth is low  from underline
status  proportion to the illiterate youth  population .from the table the show certificate 2.5%
,male 2.5%  female  zero  and   elementary level 5% ,male none and female 5% it show as
education level of  youth  first  and  second level of cycle  has the less level of education

Table -3 educational background

25
 Male Female Total
Educational
Respondent Responden Respondent Responden Responden
Responden
Background in t in in t in t in
t in number
percentage number percentage number percentage

I never  studied - - 1 2.5 1 2.5

Elementary level - - 2 5 2 5

Secondary level 3 7.5 5 12.5 8 20

Vocational school 3 7.5 8 20 11 2.5

Certificate 1 2.5 - - 1 2.5

Diploma 4 10 6 15 10 25

Degree
5 12.5 2 5 7 17.5

Total
16 40 24 60 40 100

Source; primary data

  as in unemployed most of vocational school finished 27% , female has 20% and male 7.5% it
show as female has more chance to get in this education .and the diploma has 25% ,female get
15% and male10% and  the  secondary level has 20%,male 7.5%and female 12.5%and degree
17.5% ,female 5% and male 12.5%.  so in Bako  city women has more chance to get education 
more than mal attend in education  this result could show  as  to miss mach between the type of
education  and requirement of labor market  .   

         The table  analysis  the condition  of unemployment from their family background .most of
respondents  are government employee 30%, non government employee 27.5% ,business men  or
women 22.5%   and farmer 12.5% the reaming  are  less factors like  parentless 5%, pensioner
2.5% this all respondent are their own side effect  for unemployment  problem in Bako town  .

Table -4 family background

Family Respondent in number Respondent in

26
background  percentage

Farmer 5 12.5

Government  employee 12 30

Non government employee 11 27.5

Business men and women 9 22.5

Pensioner 1 2.2

Pertness 2 5

Total 40 100

Source; primary data

   As the empirical data indicate the most of unemployed men and women their family
background show as government employed and non government employee for theses purpose the
unemployed men and women haven’t worry about get a job, because their family may be
generate enough income for them .that why they don’t worry getting work .the reaming
respondent are not getting enough income from their family. because of some of haven’t family
and other are migrate from rural to urban  so this all things are  show as   result of unemployment
in Bako respondent

3.2 Causes of unemployment

            From the underline tables respondent result Show as not interesting to work  so they have
their own  reason not interesting  to work the figure show as the half  of them are not knowing by
this table ,why not interested of respondent are not  explain their interest from  the underline
table . they need to  choose others 55%,waiting for better job offer 12.5% and saw no
possibilities for advancement  or work  would required to many hours  10%the reaming  tow are
wages offer  were to low and work would require too few hours.

Table -1 reason       

27
 Reason Respondent in number Respondent in percentage

Wages offer were to low 3 7.5

Work would require to many

4 10
Hours

Waiting for better job offer 5 12.5

Saw no possibilities for

4 10
Advancement

Work would require too few

2 55
Hours

Other
22 5

Total 40 100

Source; primary source

Based on the empirical while finding a job is a challenge, even having a job does not guarantee
the means to escape poverty.  Wages for urban paid employees are generally low, although
significant differences are found across type of employer, sector and worker characteristics. The
employers that pay higher media .Increased unemployed labor force and not interested to work
are positive relation of underdeveloped. Which also raise challenges, particularly in terms of the
expectations of youth? The abolished the job guarantee for educated an uneducated. There was
evidence that in the unskilled youth unemployment were not interested to work and choosing
work without enough experts has effect on unemployment in Bako city.

             Unemployment in the developing country has expanded day to day activities that why
unemployment didn’t get the solution stile not only in  Africa  even in Europe didn’t get the
solution  so there   is cause of  unemployment  .the table -2 show respondent answers .unfair
competitively  environment in job vacancies35%, on availability of job opportunities22.5% ,lack
of capital to start new business 20%   and trained in a field of study did not work with it 17.5
%the reaming are financial in capability to purse farther education 2.5%.

28
Table -2 reason

Respondent in Respondent in
Reasons
Number  percentage

Non availability of job opportunity 9 22.5

Unfair competitive environment

14 35
In job valances

Lack of capital to start new business 8 20

Trained in a field of study did not

7 17.5
Work with it

Financial in capability to pursue

1 2.5
Farther education

Other 1 2.5

Total 40 100

Source; primary source

  When we see in detail the great cause for the expansion of unemployment in Bako city is
because of unfair competitive environment, off course there are some office responsible to give
equal chance of for all of people to get but most of are not interested to annoyed or post vacancy
to all of people even they post new vacancy so the cause of unfair competitive environment is
corruptions and bribery.

 The other reasons for unemployment as the respondent said non availability of job opportunity 
even there are many vacancies ,that are post in the notice board  ,but the fact is all most
vacancies are require ,work experience ,because of this requirement many unemployment men 
and women are segregated from participation .

 Apart from the above reason lack of capital to start new business is the great challenge for
unemployment as we know that currently most people are interested to start their own business
(becoming self employment) .because it have on advantages regarding to job security, flexible
working hours, give order instead on receiving order implement the idea what you generate

29
without any hesitation so people need to starter their own business, but the question is lack or
shortage of capital.

  To sum up the reason what the respondent replay indicates that the government should arrange
all things depended on each reason, for example arrange credit facility for unemployed to create
their own business, amend vacancy announcement based on the skills and professions instead of
experience and on

       Bako city respondents need to earn when they get work but yet the attractiveness of an
employer and job quality is clearly multi-dimensional. This goes beyond wages, and includes
hours worked, and job attributes, including occupational health and safety, non-wage benefits,
employer’s adherence to core labor standards, employer/worker affiliation to statutory social
security schemes, commuting distance, employment and earnings stability and career
development prospects Want to earn  Wage relativities mean and median  by skill category and
type of employer .

Table -3 wish to earn

Respondent in Respondent in
Wish to earn
Number  percentage

300-700 9 22.5

701-1300 6 15

1301-2000 9 22.5

2001-3000 5 12.5

3001-4000 11 27.5

30
 Total 40 100

Source; primer source

The above table show as most of  them are need to earn  high level of  incomes like ( 3001-
4000)27.5 % ,and some of them are wish to get  the less  level income  ( 1301-2000),(300-700)
22.5% the reaming  are less to interested to earn low earning income (2001-3000)12.5 % and
(701-1300) 15%.

              Unemployment person can have face problem to start new business   when look the
respondent have face problem finding job, self employed them self and it show as result in
percentage .most of them are face lack of getting facility of land training credit and license30%,
difficult to get suitable partner 27.5%and group collapse for different reason market interact the
ramming are not expressed in this part it mines they face other problem we have gap to their
choice other 17.5%.

Table -4 problems

Respondent in Respondent in
Problem 
Number  percentage

Difficult to get suitable partners 11 27.5

Lack of getting facility of land

12 30
Training and credit and license 

 Group collapse for different

10 25
reasons market interact

 Other 7 17.5

31
 Total 40 100

Source; primary source

              As the above table indicate that 30% of unemployed men and women get a higher
challenge on to start new business, lack of getting facility like land training credit and license,
the remaining 27.5% said that the problem is difficult to get suitable partners for different
reasons (marketed interaction).the other 17.5% respondent saying because of skill how a new
business. We know that to start a new business there is a perquisite that is getting proper training
about business management, getting work area, license from the government and startup
capital .but the great challenge unemployed men were setup capital  provide loan  for
unemployed  with in bad credit can help them live better life style and fulfill their goals in the
life however ,the truth is that banks and other financial institution    prefer to give away loans to
those having a fixed income every month ,irrespectively whether self employed or working in a
firm this is because the risk of customer  defaulting on monthly installments of the loan in this
case .it is well accepted faceted that giving loan for the unemployed with no bank account it is
not an easy task there are many formalities which a loan seeker needs to complete to get a loan
approved, in case of unemployed people ,banks will property screen out .the financial position of
the person applying   for alone assists such as properties or real estate ,bank deposited  share and
bond would be checked before arriving at a conclusion that person is deserving candidate for
alone ,banks and finance are interested to judge that giving loan for those individual whose
repayment capacity is high.

3.3 consequence of unemployment

           The high level and duration of urban unemployment in Ethiopia raises a number of
questions about measurement, drivers and policy implications. The high incidence and depth of
urban poverty, and lack of unemployment benefits, would a priori suggest that unemployment is
simply not an option for most Ethiopians. This would seem to hold even if available employment
opportunities offer only subsistence earnings, since relatively few families can afford to
subsidize their unemployed children for extended periods. Perhaps, then, the respondent extent
of unemployment is a measurement issue.  Under table -1 show a respondent participation in
illegal activities 25%, looking for away outs to leave their city 20%,they become frustrated and

32
are addict to some drink, smoke and obliged to sell fixed assets to make alive 15 %, motive to
work serve the people and purse for their education, skill and quarrel with families for financial
requirement 12.5%

Table -1 Consequences of Unemployment

Consequences of Respondent in Respondent in
Unemployment Number  percentage
Become frustrated and are addict
6 15
To some drink ,smoke
Motive to work serve the people 
and purse for their education, 5 12.5
skill
Quarrel with families for
financial 5 12.5
Requirement 
Participation in illegal activities 10 25
Looking for away outs to leave
8 20
their city 
Obliged to sell fixed assets to
6 15
make alive
Total 40 100
Source; primary source
          Interesting   to earns they will have work and consequences of unemployment   are
unemployed for the   consequence of unemployment person for the futures are government
thinks with budget or total expenditure the Unemployment has obvious affects on individuals
communities family and political entities ,according to the data what is collect that 25%ofthe
respondents said that “because of unemployment we make participate in illegal activities “around
20%looking far away outs to leave the city15%of unemployment’s are obliged to sell fixed
assets to some drink ,smoke or gamble .12.5of them are motivates to work serve the people and
purse for their education is skilled and quarrel with families for financial requirement . General
high unemployment creates huge cost for individual and for the economy as a whole, there are
no positive impacts to all instead of loss of income conflict and gamble people interested to
migrate one country to other, civil war can be takes so these whole things are the main purpose
or consequence of youth unemployment in the country. 

3.4    Possible solution of the Urban Unemployment Problem

33
The respondent show as how much they  are interested  to get  solution of unemployment 
problem and  increment  of creating new job and self employee. The performance of urban labor 
in Ethiopia has been disappointing, even with the acceleration in growth in recent years. Jobs
growth has been slow, and way below what is needed to productively employ urban residents
looking for work; unemployment is thus high. Even for those who have income earning
opportunities, these are typically in the informal sector and very low paid. Compounding the
challenges of sluggish job creation and low pay are the particular disadvantages faced by women
and men youth.

Our respondent is that these dismal outcomes can be traced back, at least in part, to segmentation
of the labor market. In effect what we see is an urban economy that is to a large extent cut into
three segments the relatively privileged public sector; the private formal, and the large informal
economy, which is mainly small scale and more ‘survival’ than entrepreneurial. To explore this
respondent result, this table seeks to explain the crating new business and pattern of job creation
in Bako and examine the policy and other factors which are generating the observed outcomes.

Table -2 Statement

Respondent in  percentage

Statement
Disagre Strong
Strong norma
Agree e disagre Total
agree l
e

The government should create new

jobs in 50 30 10 7.5 2.5 100
The public sector
The government should encourage
establishment  and expansion of 67.5 27.5 5 - - 100
private business

34
 The government out to support the
unemployed with finance and 45 40 15 - - 100
training

Provide proper educational system

32.5 50 5 10 2.5 100
that used create self employment

Government should provide loans

50 45 2.5 2.5 - 100
to you had youth

Government should provide

45 30 7.5 17.5 - 100
working /saving place

290 222.5 45 30 5 100

Total
Source; primary source
        As indicate the above table largely number of respondent  above halve 67%strongely agree
it mines most of the respondent  are one hundred percent  believe on the government should
encourage establishment and expansion of private business better way for reducing
unemployment rate and increasing economic growth the development of expansion private
business on the other way 50%,of the respondent said the government should create new jobs in
the public sector and government should provide loan to you had youth it must the solution
government expanded new investment ,small scale business to discourage unemployment rate on
the other hand 45%of respondent strong interest on government out to support the
unemployment with finance and training ,government should provide working and saving
place ,actually this way might be reduce unemployment rate because if there is large number of
microfinance association ,youth will try to borrow many from association after the long period 
he is get his own business therefore he is out of inactive labor or reduce unemployment by the
effort of him to be  conclude this table presentation there are three major opportunities in Bako
city according to the respondent response I try to list by rank

1st. Government should encourage establishment and expansion of private business n

2nd. the government should create new jobs in the public sector and government should provide
loan to you had youth.

35
3rd. the government should provide working and saving place and the government out to support
unemployed with fiancé and training. 

  The area of training that is help full to ease unemployment and foster self employing attitude
and capability. The training  are  motivation for  increment  of public sector employment and 
creating new job training   is grounded in its relative size, and the effects of public sector
employment and expansion of new moderation or technological system are purposely  it 
economical development  and new  skilled  labor market competitive  perfectly  in  market it
show as all labor demanded  and supply decided by market . It mines most of developed
countries flow this way that why education and training trends. A somewhat distinct issue, which
is the need for Government to be able to recruit and sustain the needed to deliver on its
development agenda, is addressed in the concluding respondent. The basic questions explored
here are whether the public sector is a good place for individuals to work, and whether the wages
and terms of employment in the public sector push up costs in private sectors.

Table -3 Area of training

Respondent in Respondent in
Area of training
Number  Percentage

Social science and business 11 27.5

Agriculture and rural

9 22.5
development
Information  technology 9 22.5

Electric  city 1 2.5

36
 Construction 7 17.5

Medicine /healthy science 3 7.5

Total 40 100

Source; primary source

                As it s indicate on the above most of the respondent interested to trine social science
and business 27.5%, agriculture and rural development and information technology 22.5%, and
construction 17.5%the reaming are not more interested to learn electric city 2.5% and medicine
or health science 7.5% it show as most of them are not able to learn or no knowhow. the majority
of respondents believe that social science and business is used reduce unemployment rate
because currently our country Ethiopia is expanded new business to create self employment as
the respondent 22.5%is now economic deepened  on  agriculture and reason is now all things
what is made wrong without information technology ,so this all thing is the necessary for
expanding agriculture ,fertilizer ,creating a job for them like  computer center ,computer
maintenance ,data base development and website development 17.5%of the respondent said that
construction engineering field are better to create self employment ,because now the government
is focused on engineering and construction area ,so it is an easy way to get job opportunity and
we will be constructor by the studying the field of engineering . The reaming 7.5 % and
2.5%respondent said medicine or healthy science and electric city field. are used to create self-
employment, study the field of healthy science and electric city engineering because the field at
recent time government are need more this field to their drafting project uses or government
gives special attain for it not only in Ethiopia, even if in Ethiopia.

37
CHAPTER FOUR

4. Conclusion and recommendation

4.1 Conclusion

         According to the finding result  the researcher gives his own conclusion .unemployment’s
are widely spread in Bako city especially under the age category (20-24).as we have seen this
age category it indicates young generation .it is clear that they have a potential to change
anything .and can create something new .but most of them in this age category are unemployed
or jobless  so it show  as the most of  urban developing countries has face to use youth  labor
force   to change economic of the one countries but leaders are not more working this hot labor

38
force .according to the result most of women respondent  are jobless and its hits them much
harder in crime condition  than man.

They are used to their roles or breadwinners and now need to adapt to being households. Women
also more inclined to stay with unemployed .parents as they instinctively security for their future
children. due to this reason most unemployed women were not marriage or they are single .the
previous and at recent times  shows most of women are not give to chance to educate themselves 
because of their family believe and the customs  of peoples.

The major causes that affect unemployment were measure. the target  respondents agree with the
major cause of unemployment is unfair competitive  environments in job vacancies and non
availability of job opportunity even if they need to start    venture .unemployed individual have
to go through a right economic crunch the are   able to get unfair competitive  environment job
vacancy   opportunity .this may  lead  looking far away outs to leave their  city and  to decline in
their personal earning income and no one interesting  to work unfair condition of mood they
become frustrated and are addicted to smoke ,drink or gamble  crimes.non availability of job
opportunity is sure to have a deep impact on their expensiveness .due to this reason most
unemployed men  and women obligated to sell fixed asset and quarrel with families for financial
requirement in order to full file their financial requirement .to solve the problem

Urban youth unemployment has not only created from the imbalance between the labor force
Growth and overall economic growth but it has also aggravated by the rural urban migration
.mismatch between job opportunities and aspirations. Increasing urbanization and increasing
concentration of resource in urban areas becomes increasingly overcrowded with high rates of
youth unemployment 

39
4.2   Recommendation

 Every city administration need to solve the problem of unemployment at all from the
city .but there are different problem that occurs incidentally due political, economical and
social issue. However, the researcher recommended to the city administration as follows.
 The city administrator should give additional vocational training for jobless individuals
and indicates the way how to create -self employment.
 And if they are self employed, they can develop self confidence and independent  i.e.
they can read their families ,and there is nothing of making art from their families with
their families and obliged to sell their personal assets 

40
  Launching establishing the government should encourage and expansion of private
business, investment and create new jobs in the public sector is not enough to reduce
unemployment level without effective follow up.
 Government small enterprise and    industry bureau should be giving technical advice for
them in order to improve the production capacity and self- employed. It is implementing
effectively small enterprise and    industry bureau can create employment opportunities to
many peoples. So this is enough to solve the problem of unemployment.
 Financial institution have great responsibility on provision of loan to micro and small
enterprise with low interest rate as well as without collateral requirement for the loan
what they provide .
 In addition to this they should be giving advice on investment and activity imitating them
to save some amount of money  and solve unemployment problem
 Should encourage and  expansion of private business , investment  and create new jobs in
the public sector .however if there is reflect under supervision of  unfair competitive 
environment  in job vacancy   opportunity and non availability of job opportunity.

Reference

Knife abraha, Ethiopia the development of economic reforms edition 2000

Todaro(1994) , development economics ,new York university and population country

CSA. Ethiopia national labor  survey  edition 2001  (1994,2007, 2011)

CSA, population  project of tigray region (1994-2005)

Smaith ,2000;modern labor economics,theory and public policy .6th edition USA

Smaith ,1997;modern labor economics ,theory and public policy .6th edition USA

41
Niall O’Higgins (2001).youth unemployment and employment policy; a global perspective;
Geneva,

Ghadi,D.(1988).labor and developments

www.ral.ucar.edu/staff/prlankao/GRHS-2011-ISUES paperfinal.pdf/source.

10.  (National Employment Policy and Strategy of Ethiopia , Addis Ababa,November 2009)

11.  Dendir,s(2006). Unemployment duration in developing economies :evidence from urban

ehiopia .the journal of developing area R23,J64,O55.

Mankiw,N.G (2000).Macroeconomics ,5th edition .new  York, NY:Worth,2002.

ILO , world employment and unemployment ;Genva .jamesatopbin full employment and growth,
UK

 Philip ndegwa and jhon p. powelson ( 1973), employmenmt in Africa ;some critical issues ,ILO,
genva

Farooq , GM( 1995).population and employment in developing countries ;training in

population ,ILO; Geneva

Kirshna,P (1996).family background education and employment  background ,education and

employment in urban Ethiopia .oxford bulletin of economics and statics ,58(1).167-182.

E mekBureau of economics and finance Ambo town ,2009

Paul,1977;the economics development of 3rd world since 1990.s

Keynesian ,1936 the world economic deprecation new York in UK

42