COVID-19 and unemployment

BY ELIZABETH OGUNWALE

IT is not an exaggeration that the coronavirus pandemic severely damaged the world’s most developed countries and is fast becoming a major threat to low and middle income countries, especially the poorest continent, Africa.

However, the intensity of unemployment is one of the major issues affecting the economy. And this goes without saying, that it has been the bedrock and foundation of social vice in the country. The rate of unemployment has increased in the last few years, coupled with the outbreak of the pandemic.

Sadly, the pandemic has also resulted in job loss for many; the reason given by employers is “coronavirus”.

Even before the emergence of COVID-19, Nigeria’s unemployment rate was sky high at 23 per cent while underemployment stood at 16 per cent, according to a 2018 report by the National Bureau of Statistics (NBS).

In May, last year, the Minister of Labour and Employment, Dr. Chris Ngige, said the Federal Government forecast an unemployment rate of 33.5 per cent by this year. Since the pandemic, however, the situation has got worse.

Vice President Yemi Osinbajo, who chairs the Economic Sustainability Committee  (ESC), said the government was anticipating 39.4 million job losses by December due to the pandemic.

Worryingly, that number is likely to increase given the tremendous impact which the pandemic has had on trade globally. It is in this vein that more Nigerians, especially in the lower middle class, would be potentially faced with the immediate impact of the pandemic and will, with no benefit of doubt, be forced to live below the normal living standard and  join the poverty line.

Last year, Nigeria was labelled the poverty capital of the world with an aggregate estimate of 89.1 million people out of a population of 196 million, living in abject penury and those numbers are liable to increase with the impact of the coronavirus on businesses and the resulting job losses.

In May, it was reported that Access Bank would downsize due to the pending pandemic. However, it took the intervention of the Central Bank of Nigeria (CBN), via an agreement with the banks to suspend staff layoffs until further notice, “to help minimise and mitigate the negative impact of the pandemic on families and livelihoods”.

Other businesses had their fair share of the pandemic impact and have, notwithstanding, adopted various ways to combat the effect of the virus.

Although the issue of unemployment has been from time immemorial, to avoid the increase in illegal  activities carried out by unemployed persons, government should carry out reforms and create jobs regularly.

Rural-urban migration has raised  the level of joblessness and resulted in high degree of dependency on production causing imbalance in the distribution of resources. Additionally,  the high level of corruption, embezzlement and mismanagement of funds and resources supposed to be used for the good of the citizens remains worrisome.

The lack of infrastructural facilities and utilities to aid stability, security, sustainability and high living standard is major factor leading to unemployment. Our educational system lacks high quality compared to other institutions. Most employers believe that graduates are unemployable since the educational programmes provide theories and lack practical use of knowledge. There is also the lack of sustainable entrepreneurial training which aids business stability and development.

However, the decline in the  economy and the incessant taking of loans by the government is not pleasing. There could be light at the end of the tunnel  if only our government can be proactive and institute reforms that will benefit the citizenry.

• Ogunwale is a 300-level Law student of UNILAG