The Causes and Consequences of Youth Unemployment: the case of Arada Sub-city, Addis Ababa, Ethiopia

Abstract

The purpose of this study is to explore the condition of youth unemployment in Arada sub-city. With this objective, the problem statement of the study was for the better understanding of urban unemployment in Arada Sub city Administration and for comprehensive actions aimed at improving the problem. The study used a descriptive research design with both qualitative and quantitative data analyzed for the sake of examining the cause and effect of unemployment on youths of Arada sub-city. Moreover, the study used inductive approach with quantitative dominant research method was applied and since the population was clearly defined and countable, Yemane’s formula was used for this study. The method of data analysis was data from the closed ended questions were coded and entered to SPSS for analysis and summarizes the data descriptively using tables, percentages and frequency. Based on the stated objectives, the findings of the study implies that, population growth, skill mismatch between the education system and employers’ expectations; lack of quality education were the main causes of youth unemployment in Arada sub-city. In other words, people living on the country side are trying to escape the lower standard of living in rural areas to find employment and a better life in urban centers. This then leads to an over-supply of labor on the job market in urban areas. Based on the findings of the study, the following workable recommendations are forwarded. Government and other stakeholders should improve the education system, properly control the rural-urban migration and provide entrepreneurship skill for youths in their early age sin order to reducing youth unemployment in the country actually serves this purpose.