`EXAMINING CHALLENGES FACING GRADUATE

JOBSEEKERS:
A CASE OF DAR ES SALAAM
 EXAMINING CHALLENGES FACING GRADUATE
JOBSEEKERS:
A CASE OF DAR ES SALAAM

By:
Lilian Elphas Lema

A Dissertation Submitted to Mzumbe University, Dar es Salaam Campus College

in Fulfillment of the Requirement for the Award of Masters Degree of Public
Administration of Mzumbe University.

2014
 CERTIFICATION

We, the undersigned, certify that we have read and thereby recommend for acceptance
by the Mzumbe University, a dissertation titled Examining Challenges Facing
Graduate Jobseekers: A Case of Dar es Salaam, in fulfillment of the requirements for
award of the degree of Masters of Public Administration of Mzumbe University.

_______________________________

Signature of supervisor

_______________________________

Signature of internal Examiner

Accepted for the board of__________________________

________________________________________________________

DEAN/DIRECTOR, FACULTY/DIRECTORATE/SCHOOL/BOARD

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 DECLARATION
AND
COPYRIGHT

I, Lilian Elphas Lema, declare that this dissertation is my own original work and that it
has not been presented and will not be presented to any other university for a similar or
any other degree award.

Signature__________________________

Date_______________________________

Copyright © 2014
This dissertation is a copyright material protected under the Berne Convention, the
Copyright Act 1999 and other international and national enactments, in that behalf, on
intellectual property. It may not be reproduced by any means in full or in part, except for
short extracts in fair dealings, for research or private study, critical scholarly review or
discourse with an acknowledgement, without the written permission of Mzumbe
University, on behalf of the author.

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 ACKNOWLEDGEMENTS

This dissertation is a product of God’s mercies and assistance. To him alone belong all
the Praise and Glory.

I would like to express my sincere gratitude to Dr. K.P.F Mtei, my supervisor, for
constantly being there to see to it that I never lacked guidance whenever I needed it.
Whenever he offered his criticism, it was in the way that spurred me towards
accomplishment. It was through his guidance throughout the research process that this
work has come to be the successful piece that it is today.

I also extend my heartfelt thanks to those graduates who allowed me to collect data from
them. Without their cooperation this study would not have successes.
My appreciation also goes to my colleagues, Susan Manyanga, Aisha Haji, Grace
Mramba, Sylvia Imalike and Roseline Adhero for their encouragement during our
studies at Mzumbe University.
Indeed, I remain indebted to my husband Prosper Urio, my mother Hellen Lema, and my
daughter Lisa Precious for their patience, support and inspiration during my studies.
Many other people were involved in one way or another to the successful
accomplishment of this study. To you all, I say ‘thank you!’

iii
 DEDICATION

To my mother Hellen Lema, my husband Propser Urio and my daughter Lisa Precious.

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 LIST OF ABBREVIATIONS

AIDS : Acquired Immune Deficiency Syndrome

EAC : East African Countries
ECA : Economic Commission for Africa
HIV : Human Immunodeficiency Virus
ICT : Information and Communication Technology
IT : Internet Technologies
ILFS : Integrated Labor Force Survey
ILO : International Labor Organization
MSMEs : Micro Small and Medium Scale Enterprises
NBS : National Bureau of Statistics
NSGRP : National Strategy for Growth and Reduction of Poverty
PRS : Poverty Reduction Strategy
SPSS : Statistical Package for Social Sciences
SACCOS : Saving and Credit Cooperative Societies
UN : United Nations
URT : United Republic of Tanzania

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 ABSTRACT

Unemployment and underemployment continue to be serious social problems in

Tanzania despite some improvements in recent years. This study attempted to assess the
challenges facing graduate job seekers and discuss their role in explaining and solving
the problem of unemployment. In doing so the study used a sample of 56 respondents
that were selected by using purposively sampling technique as the study population.
Data were collected by using interviews, questionnaires and documentary reviews.
The study finds that there are different policies and strategies introduced and
implemented by the government to generate employment. Those policies and strategies
on the demand side of the labor market include special incentives and supports provided
to private sectors and public employment generation schemes. On the supply side of the
labor market, there are significant efforts to improve labor productivity in both farm and
off-farm activities. These interventions are constrained by the extensive informal sector
in Tanzania, the low demand for labor and lack of government budget. The labor market
institutions that govern employment relations in Tanzania are generally found to be
weak. This weakness is characterized by limitation of the legal framework and lack of
social dialogue among institutions.

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 TABLE OF CONTENTS

DECLARATION ............................................................................................................................ ii
AND ................................................................................................................................................ ii
COPYRIGHT ................................................................................................................................. ii
LIST OF ABBREVIATIONS ......................................................................................................... v
CHAPTER ONE .............................................................................................................................1
1.1 Introduction...........................................................................................................................1
1.2 Background of the Problem ..................................................................................................1
1.2.1 The Employment Situation and Challenges in Tanzania ...............................................1
1.3 Statement of the Problem ......................................................................................................5
1.4 Objective of the Study ..........................................................................................................6
1.4.1 Main Objective ..............................................................................................................6
1.4.2 Specific Objectives ........................................................................................................6
1.5 Research Questions ...............................................................................................................6
1.6 Significance of the Study ......................................................................................................7
1.7 Scope of the Study ................................................................................................................7
1.8 Limitations of the Study .......................................................................................................8
1.9 Delimitations of the study .....................................................................................................8
1.9.1. Prepare Flexible Budget................................................................................................8
1.9.2 Elaborate the Respondent. ......................................................................................8
1.9.3. Remind Respondents. ...................................................................................................8
1.9.4. Encourage the Respondents. .........................................................................................8
1.10 Organization of the study ................................................................................................9
LITERATURE REVIEW ............................................................................................................ 10
2.1 Introduction........................................................................................................................ 10
2.2 Theoretical Framework ...................................................................................................... 10
2.2.1 Neo-Classical Employment Theories ......................................................................... 10
2.2.2 Common Economic Problems .................................................................................... 11

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 2.2.3 Psycho-social Effect of Unemployment ..................................................................... 13
2.2.4 The Youth Fare Worse than Adults ............................................................................ 14
2.2.5 Consequences of a Lost Generation ............................................................................ 16
2.2.6 Young People as a Talented Resource……………………………………………………………………..…….18

2.3 Empirical Literature Review .............................................................................................. 18

2.3.1 The National Employment Policy………………………………………………………………………….………..19

2.3.2 Employment Rate……………………………………………………………………………………………………………20

2.3.3 Trade Liberalization Effects on Employment Status in Tanzania……………………..22

2.3.4 Constraints and Challenges to Youth Employment .................................................... 24

2.3.5 The Role of Higher Education in Labour Market ………..………………………………………………30

2.3.6 Management Strategies to Enhance Relevance of Courses in the Labor Market ............... 31
2.4 Conceptual Frame work…………………………………………………………………………………………………….34

2.5 Conclution…………………………………………………………………………………………………………………………36

RESEARCH METHODOLOGY ................................................................................................ 38

3.1 Introduction........................................................................................................................ 38
3.2 Study Area ......................................................................................................................... 38
3.3 Research Design ................................................................................................................ 38
3.4 Study Populations .............................................................................................................. 38
3.5 Sample and Sample Size .................................................................................................... 39
3.5.1 Sampling Techniques .................................................................................................. 39
3.5.2 Sample Size................................................................................................................. 39
3.6 Source of Data ................................................................................................................... 39
3.6.1 Primary Data ............................................................................................................... 40
3.6.2 Secondary Data ........................................................................................................... 40
3.7 Data Collection Methods ................................................................................................... 40
3.7.1 Interview ..................................................................................................................... 40
3.7.2 Questionnaire .............................................................................................................. 41
3.8 Data Analysis ..................................................................................................................... 41

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 3.8.1 Data Processing........................................................................................................... 41
3.8.2 Data Coding ................................................................................................................ 41
3.8.3 Data Editing…………………………………………………………………………………………………………………….42

3.9 Data Reliability and Validity……………………………………………………………………………………….……..42

CHAPTER FOUR……………………………………………………………………………………………………………………….43

RESEARCH FINDINGS……………………………………………………………………………………………………………….43

4.1 Introdution………………………………………………………………………………………………………………………..43

4.2 Data Analysis……………………………………………………………………………………………………………………..43

4.3 Research Findings………………………………………………………………………………………………………………43

4.3.1 Gender of the Respondents……………………………………………………………………………………………43

4.3.2 Age of the Respondents………………………………………………………………………………………………….44

4.3.3 Education of the Respondents……………………………………………………………………………………….46

4.4 Perception of the people on the magnitude of unemployment for graduates ..................... 47
4.4.1 Duration of Joblessness after Graduation .................................................................. 47
4.4.2 Government Support to Job Seekers ........................................................................... 49
4.4.3 Effectiveness of the Government Graduate Employment Policy................................. 50
4.4.5 Effectiveness of the Government Recruitment Policy .................................................. 51
4.5 Causes of unemployment in Tanzania ............................................................................... 52
4.7 Consequences and implications of graduate unemployment in Tanzania ......................... 55
CHAPTER FIVE ......................................................................................................................... 59
DISCUSSION OF THE FINDINGS ........................................................................................... 59
5.1 Introduction ........................................................................................................................ 59
5.2 General Observation .......................................................................................................... 59
5.3 Perception of the people on the magnitude of unemployment for graduates ..................... 60
5.4 Causes of unemployment in Tanzania ............................................................................... 61
5.5. Consequences and implications of graduate unemployment in Tanzania ........................ 61
CHAPTER SIX ............................................................................................................................ 62

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SUMMARY, CONCLUSION AND RECOMMENDATIONS .................................................. 62
6.1 Introduction........................................................................................................................ 62
6.2 Summary ............................................................................................................................ 62
6.3 Conclusion ......................................................................................................................... 64
6.4 Recommendations.............................................................................................................. 65
6.5 Recommendation for Further Studies ................................................................................ 68
REFERENCES ............................................................................................................................ 69
APPENDICES ............................................................................................................................. 74

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 LIST OF TABLES

Table 3.1 Sample Size...................................................................................................... 37

Table 4.1 Gender of the Respondents .............................................................................. 41
Table 4.2 Age of the Respondents ................................................................................... 42
Table 4.3 Respondents’ Education Level ........................................................................ 43
Table 4.4 Duration of Joblessness after Graduation ........................................................ 44
Table 4.5 Causes of Unemployment ................................................................................ 46
Table 4.6 Challenges Facing the Graduate JobSeeker ..................................................... 47
Table 4.7 Whether or not the Government Support Jobseeker ........................................ 48
Table 4.8 Effectiveness of the Government Graduate Employment Policy .................... 49
Table 4.9 Effectiveness of the Government Recruitment Policy ..................................... 50
Table 4.10 Problem Hindering Graduate Employment ................................................... 51
Table 4.11 Suggestion to Government and Private Institutions on Graduate Employment
.......................................................................................................................................... 52

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 LIST OF FIGURES

Table 2.1 Conceptual Framework .................................................................................... 34

Table 4.1 Gender of the Respondents .............................................................................. 41
Table 4.2 Age of the Respondents ................................................................................... 42
Table 4.3 Respondents’ Education Level ........................................................................ 43
Table 4.4 Duration of Joblessness after Graduation ........................................................ 45
Table 4.5 Causes of Unemployment ................................................................................ 46
Table 4.6 Challenges Facing the Graduate JobSeeker ..................................................... 47
Table 4.7 Whether or not the Government Support Jobseeker ........................................ 48
Table 4.8 Effectiveness of the Government Graduate Employment Policy .................... 49
Table 4.9 Effectiveness of the Government Recruitment Policy ..................................... 50
Table 4.10 Problem Hindering Graduate Employment ................................................... 51
Table 4.11Suggestion to Government and Private Institutions on Graduate Employment
…………………………………………………………………………………52

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 CHAPTER ONE
INTRODUCTION AND BACKGROUND INFORMATION

1.1 Introduction
This chapter includes the background of the problem, significant of the study, statement
of the problem, objective of the study, limitation of the study.

1.2 Background of the Problem

In most African countries, including the three East African countries, unemployment,
under-employment and poverty levels have continued to increase and have remained at
extremely high levels despite considerable efforts to promote sustainable development
by national governments and international development agencies (ECA, 2002). In recent
years, there has been increased concern over the tragic waste of human potential,
particularly for the youth. Most of the youth are either unemployed or underemployed.
On the other hand they can also be overworked in conditions lacking in the core labour
standards.

The proportion of young women in poverty is still greater than that of men, although
they assume a major role in maintaining the family. They work more in the agriculture
and informal economy, occupying jobs in low profitability activities and earning low
incomes. This is one of the main economic reasons for the feminization of poverty in
Africa. The challenge therefore is to design integrated employment-generating
macroeconomic policies that create decent opportunities for young women and men,
who represent a majority of the population and in the labor force (Semboja, 2005).

1.2.1 The Employment Situation and Challenges in Tanzania

This section presents a brief policy framework, economic performance, population
characteristics and labour force performance in Tanzania.

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The Socio-economic Situation
In the case of the United Republic of Tanzania, there was the institution of a general
policy environment, which is more favorable to private sector expansion. This involved
measures such as reducing the fiscal government budget deficit, and the liberalization of
internal and external trade, the removal of restrictive trade systems, the liberalization of
the foreign exchange market (Semboja, 2005).

The country shifted from previous reliance on control mechanisms to a predominantly

market-oriented environment and private enterprise development. Tanzania has adopted
a free and open market system, with easy free entry and exit of people, goods and
services. There has been a significant increase of trade relationships among EA countries
and an increase of Kenyans employed in the modern financial, communication, tourist
and hospitality sectors in Tanzania (URT, 2004).

Tanzania is still focusing on macro-micro linkages subject to intensification of first

generation reforms in terms of continuation of fiscal, monetary, legal, regulatory and
institutional reforms. In addition, there has been the formulation and implementation of
a series of sector-specific macroeconomic and other broad-based national development
policies. Broad-based policies included the National Development Vision 2025 and
Poverty Reduction Strategy Paper.

The problem of unemployment and underemployment has now become so serious that it
should be regarded as a major national development challenge with ramifications for
economic welfare, social stability and human dignity. Unemployment and
underemployment have remained part of the intractable problems facing Tanzania since
the 1970s whereby the country went through an economic crisis reflected by the fall in
the annual GDP growth rate from 5% to an average of 2.6% in the early 1980s, and
about 1% in the beginning of the1990s (URT, 2000).

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Since the mid-1980s, Tanzania embarked on implementing a series of economic reforms
that gradually placed the economy on a sounder footing. After an initial recovery in
economic growth in the late 1980s, the early 1990s were again plagued by macro-
economic instability and poor economic growth that called for the adoption of macro-
economic reforms.
The ongoing reforms have yielded substantial economic growth and impressive
performance of the economy at the macro level in the past ten years. The overall
economic growth has been rising consistently (except for 2003 due to drought) from
3.3% in 1997 to 6.8 percent in 2005, constituting an annual growth rate of 5.1% (URT
Economic Survey, 2005). The achievements in GDP growth stemmed from improved
performance in agriculture, wholesale and retail trade, hotels, restaurants, tourism,
mining, and manufacturing.

In spite of the positive achievements recorded through Tanzania’s macro-economic

stabilization policies, crucial challenges remain. One of these is the high levels of
unemployment and poverty in the country.
In addition to macro-economic stabilization and structural reforms, more efforts have
been directed to poverty issues through the initial Poverty Reduction Strategy (2000/01–
2002/03) and the National Strategy for Growth and Reduction of Poverty (NSGRP)
2005-2010 to address comprehensively the critical issues of economic growth and
reduction of income poverty, improvement of quality of life and social wellbeing, as
well as governance and accountability (URT, 2000).

The major objective of this policy is, therefore to take advantage of the foundation that
has been laid so as to effectively address the challenges of unemployment,
underemployment, low productivity and consequently poverty eradication by half, as
envisaged in the Millennium Development Goals. The need to create more and better
jobs, enhance gender equality, improve the access to employment opportunities by all,

3
and generate more decent employment, is the major challenge to poverty eradication,
economic growth, social development and social integration.

The Labour Market Situation in Tanzania

The economically active part of the population in Tanzania is estimated to be 18.8
million (ILFS, 2005/06). This represents an increase of 3.3 million or 21.5 percent
compared to the findings of the 2000/2001 Integrated Labour Force Survey (ILFS), with
the corresponding labour force growth rate of 4.1% annually, equivalent to about
800,000 new labour force entrants into the labour market each year. In 2006, about 16.6
m workers or 88.3% of the economically active labour force were employed, and the
majority of the employed, worked in the rural areas, primarily on smallholdings as self-
employed or unpaid family workers. The remaining 2.2m people (11.7% persons aged
15 years and above) were unemployed. There was a noticeable increase in the number of
those employed in the private sector over the decade, especially in urban areas, although
from a low base. In 2006, approximately 3.0% of the total employed worked in the
public sector, central and local government and parastatal organizations. Employment in
the public sector declined between 1990 and 2000 as a result of privatization of public
entities and structural adjustment policies (URT, 2000).

Youth unemployment and underemployment can be observed in Tanzania, where both

are on the increase. An increasing number of youth is moving to urban centers like Dar
es Salaam, but are unable to find work due to not only lack of skills and work
experience, but also demand side problems in the urban economy of Tanzania. ILFS
2000/01 showed that youth unemployment rate is about four times the adult
unemployment rate and is growing at double the rate for adult unemployment.
According to the national/expanded definition, 13.36 percent of all youth aged 15-24
years are unemployed (11.84 percent of males and 14.82 percent of females in this age
group). In the 10-17 year age group, 11.2 percent of those in rural areas (28.4 percent of

4
males and 30.9 percent of females) and 29.7 percent in all urban areas (10.6 percent of
males and 11.9 percent of females) were unemployed (URT, 2000).

1.3 Statement of the Problem

Given the ongoing and continuous inflows of youth into the Tanzania labour market, the
main concern should be on the increment of the unemployed and underemployed youth
rather than the total unemployment situation. New entrants to the Tanzania labour force
particularly the youth that do not find appropriate jobs are more of a social threat than
the long-term unemployed that would have joined the informal sector and adjusted their
lifestyles accordingly. Some serious consequences of youth unemployment and
insecurity are linked to the exclusion of young people from a productive role in the adult
world of work that could demoralize them, undermine social cohesion and lead to social
problems such as crime, drug abuse, vandalism, religious fanaticism and general
alienation in the vicious circle of poverty. Such patterns will persist in the future if no
holistic approach is initiated to alter the employment situation.

With regional integration, globalization and the need to implement integrated national
poverty reduction plans and strategies young job-seekers will be required to adapt to the
changing nature of the jobs demanded by the new economy and the removal of all the
distortions to labour mobility. Perceptions of white collar jobs and the work of the
female labour force must be changed, particularly among the youth themselves, who will
be required to join the private sector and compete with the global labour force. Unless
distortions created by job preferences are eliminated and replaced by incentives to
increase productivity, efforts to improve employment opportunities will be futile.

Most important is to note that although problematic outcomes (i.e. symptoms) are
commonly concentrated around specific sub-labour markets such as among particular
areas, groups and occupational categories, the basic causes will often not lie there. For
example, employability, equal opportunities and entrepreneurship, to be most effective,

5
require an enabling environment where employment creation is placed at the centre of
macro-economic and other public policies. Employability requires not just appropriate
skills and training, but also regional public policies which lead to new employment
opportunities where these skills can be used. Apart from this, it was established that the
graduates’ students are faced with different challenges during the process of job seeking
which formed the basis for this study, to assess the challenges facing graduate job
seekers

1.4 Objective of the Study

1.4.1 Main Objective
The main objective of this study is to assess the challenges facing graduate job seekers
in Tanzania.

1.4.2 Specific Objectives

i) To explore the perception of the people on the magnitude of unemployment for
graduates.
ii) To determine the causes of unemployment in Tanzania.
iii) To examine the consequences and implications of graduate unemployment in
Tanzania.

1.5 Research Questions

i) What are the perceptions of the people over magnitudes of unemployment problem
for graduates?
ii) What are the causes of unemployment in Tanzania?
iii) What are the consequences and implications of graduate unemployment in
Tanzania?

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1.6 Significance of the Study
The employment challenges facing Tanzania are quite critical, calling for an urgent need
to create productive employment through a multi-pronged employment generation
strategy which emphasizes sustainable employment promotion as a national priority
agenda, sensitizes national development efforts to move at a faster pace, to reduce rising
unemployment and underemployment rates, as well as increase productivity at enterprise
level, with the eventual goal of full and productive employment.
Despite the remarkable achievements recorded by the 1997 National Employment
Policy, there are several outstanding challenges such as the new emerging labour market
challenges, emanating from the new socio-economic environment, intensified regional
integration, new developments on science and technology, and the globalization
challenges that were not previously addressed adequately. Also, the previous policy was
not comprehensive enough to consolidate into an integrated and coherent policy
proposal that could effectively address the current labour market dynamics and
challenges. Its formulation process also did not involve a holistic approach and full
stakeholder participation at all levels.

The review focuses on filing the gaps in past policies and addresses new developments
that have had significant adverse impacts on employment creation. In this respect, this
study emphasizes the need to sensitize and mobilize all sectors of the economy to
mainstream employment promotion in their respective policies and development
programs.

1.7 Scope of the Study

The study explored the challenges facing the graduate job seekers whereby, the
researcher provided questionnaire to different respondent and interviewing different
respondent from graduate job seeker in Dar es Salaam city. Hence the study was
conducted in Dar es Saalam, and the graduate students have form the basis of sample
population.

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1.8 Limitations of the Study
This study suffered from difficulties in organizing and getting respondents to the
questionnaire and interviews, which resulted in delays and a lower response rate with the
questionnaire. This necessitated closer follow-ups and resorting to telephone calls to
make up for the time constraint.

1.9 Delimitations of the study

1.9.1. Prepare Flexible Budget.

The research had to set the budget a bit flexible so as to set off the ups and downs, which
may arise during the study? Either the researcher had to search for stationaries support
from his/her office so that in one way the cost could be reduced and hence the budget for
stationaries could be adjusted to fix other part, which seems to overrun the budget.

1.9.2 Elaborate the Respondent.

To overcome the problem of respondents unwilling to provide required data the
researcher had to use more effort on influencing the respondent to respond accordingly.
In this, the researcher had to elaborate and ensure the respondent that the information
required will be used only for academic purpose and not otherwise.

1.9.3. Remind Respondents.

The researcher had to set time to the respondent that is after every week so that the
respondents could take the questionnaires into consideration. This gave ample time to
respondents to give actual details to the questions.

1.9.4. Encourage the Respondents.

The researcher had to encourage the respondent to respond positively and on time by
showing up the objectives of the study to respondents and how they could benefit with
the study by explaining to them which problems the study intended to address.

8
1.10 Organization of the study

This study consists of six chapters. Chapter one which is introduction presents the
introduction and background to the problem, statement of the problem, the main and
specific objectives of the study and research questions. Other sections presented in this
chapter are: significance, limitation, delimitation and organization of the study.

Chapter two which is Literature review, deals with literature related to the study which
covers introduction, definition of terms, theoretical review, empirical review and the
conceptual framework.

Chapter three which is methodology is comprised of research methodology in which

research, research design, study area, population, sample and sampling techniques,
instrumentation, validity and reliability of instruments, administration of instruments and
data analysis plan will be spelt out.

Chapter four presents data and their analysis, research findings and their interpretation.
While Chapter five is the discussion of the findings that were obtained during data
collection process and lastly, Chapter Six covers the summary, conclusion,
recommendations and further areas of study.

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 CHAPTER TWO
LITERATURE REVIEW

2.1 Introduction
Literature review is an important part of a research study. It involves activities such as
identifying, reading, evaluating, describing, summarizing, discussing, citing, and
synthesizing various documents with the intention of incorporating them in the study
under investigation. Literature review is documentation of a comprehensive review of
the published and unpublished work for secondary sources of data in specific areas of
interest to the researcher (Sekaran, 2003).

A well-reviewed literature demonstrates that all relevant variables to the problem have
been captured and irrelevant ones have been left out. Literature review assists the
researcher to know what others have done so as to get better prepared in addressing the
research problem with deeper insight and more complete knowledge leading finally to
identifying the knowledge gap (Leedy, 1993).
This chapter consists the review of the theoretical framework, empirical literature
review, and conceptual framework.

2.2 Theoretical Framework

2.2.1 Neo-Classical Employment Theories
Neo-classical labor economists distinguish types of unemployment between structural,
frictional and cyclical unemployment. Structural unemployment is conceived as a
product of the institutional set up of the economy, including policies, laws, regulations,
private and government organizations, types of market arrangements and demography.
In the literature, the importance of the institutional features for structural unemployment
is particularly tied to their implications for demand and supply of labor, price and wage

10
formation, and the efficacy of search and matching processes in the labor market
(Campbell and Brue, 1995; Davidson, 1990).
Frictional unemployment may be regarded as a subset of structural unemployment;
mainly reflecting temporary unemployment spells as the result of job mobility, search
and matching difficulties in connection with quits, new entries to the labor market, and
job separation because of the employers’ dissatisfaction with individual workers
(Davidson, 1990).

Cyclical unemployment differs from structural and frictional unemployment by basically

being tied to short-term economic fluctuations. An illustration of the importance of
structural unemployment compared to cyclical is that variations in unemployment rates
tend to be much larger between cycles than within cycles. In economic theory, structural
and cyclical unemployment are usually regarded as disequilibrium phenomena in the
sense that they reflect excess labor supply at existing wages (Campbell and Brue, 1995).
Then, individual employers informally tend to hire most efficient workers.

Nevertheless, technically (analytically) structural unemployment is often analyzed in

terms of the concept of equilibrium unemployment. This means that the aggregate-
unemployment level is in a state of rest. Existing excess labor supply is assumed to last
as long as certain characteristics (parameters) of the economy are unchanged (Campbell
and Brue, 1995).
Noteworthy for the purposes at hand, is that none of these equilibrium concepts in
isolation provides satisfactory theoretical explanation and policy guidance on the
unemployment situation in poor developing countries.

2.2.2 Common Economic Problems

People in these countries have disparate political, social and economic priorities based
on the level of economic development in their countries. The first and foremost problem
is the HIV/AIDS epidemic and its effects on human resource capital. The economic and

11
social effects of HIV/AIDS have exacerbated levels, nature and intensity of poverty and
youth unemployment and underemployment. Another common problem affecting the
sustainability of economic growth in the East African countries is the rise of corruption
(Semboja, 2002; MFPED, 2002).

The second common problem is failure to mobilize, own, manage and effectively utilize
the natural resource base and expand industrial bases especially in Tanzania and
Uganda. Kenya continues to be the primary communication and financial hub of East
Africa. The country enjoys the region's best transportation linkages, communications
infrastructure, and trained personnel, although these advantages have not been
effectively translated to benefit other member states (Semboja, 2002; MFPED, 2002).
These East African countries have common youth employment problems and some of
the challenges, (GOK, 2000; URT, 2005; MFPED, 2001). The current reforms pursued
in these countries have not taken the issue of youth unemployment, e.g. of
unemployment of the under 25's – as one of the key agenda in the labor market situation,
and therefore a key challenge for these member states of the East African Community.

High rates of youth unemployment represent both widespread personal misfortunes for
individuals and a lost opportunity for critical national and global economic development.
Unemployment in youth has been shown to have lifelong effects on income and
employment stability, because affected young people start out with weaker early-career
credentials, and show lower confidence and resilience in dealing with labor market
opportunities and setbacks over the course of their working lives.

The recent economic crisis has had a disproportionate and disproportionately long-term
effect on young people. According to the ILO’s Global Employment Trends for Youth,
2011 Update (www.ilo.org) the global youth unemployment rate rose from 11.8 to 12.7
percent between 2008 and 2009, the largest one-year increase on record. In the ten years
from 1998 and 2008, youth unemployment increased by 0.2 percent, or about 100,000

12
persons per year. But from 2008 to 2009 it increased by 5.3%, or 4.5 million persons, in
a single year. By the end of 2010, an estimated 75.8 million young people were
unemployed (UN, 2012).
At the same time, the labor force participation rate for young people has continued its
downward trend. After declining from 53.8 to 50.1 percent between 1998 and 2008, it
fell to 48.8 percent by 2011 (ILO, 2011).

The youth unemployment challenge is particularly intense in the developed world. In

Spain, the majority of youth (51.4%) were unemployed as of the third quarter of 2011,
and the figure was nearly as high in Greece (46.6%). The youth unemployment rate in
Portugal was 30.7%, and in the UK 22% (The Economist, 2011).

In the developing world, high youth unemployment represents lost potential for national
economic transformation, and high numbers of economically frustrated youth may
contribute to social instability. Developing regions with markedly high youth
unemployment rates include North Africa (26.6%), the Middle East (24.0%), and
Southeast Europe/Former CIS states (22.6%) (ILO, 2011).

2.2.3 Psycho-social Effect of Unemployment

Graduate initial unemployment and idleness have adverse psychological, social,
occupational and financial effects on them (Fashoyin, 1987; Fajana, 2000).
Unemployment has serious effects both on their present living conditions and their
outlook in the future and on the society in which they are supposed to be part.

Unemployment is the undoing of graduates because it literally destroys them morally

and raptures the ties and relationships they form. People who have no jobs feel
insignificant and inferior, always having the feeling that they are ostracized from the rest
of the society. Most often they are regarded as parasites.

13
In most societies conventional work ethic suggests that unemployment is unwelcome
because of the special role and meaning work has. In particular, young people in this
situation feel that they must find work, no matter what. At the beginning of the search
period, they look for jobs suited to their qualifications, training or trade but later on they
look for any kind of work (Hayes and Nutman, 1981) and any kind of pay (Kasper,
1987).

Unemployment and underemployment may cause people to flee the rural areas, move
about or migrate. The later effect will tend to explain some of the current wave of brain
drain to advanced countries from less developed world. The unemployed produce an
unsettled labour force, and in urban areas they may lead to overcrowding and crimes.

Hayes and Nutman (1980) indicated that in a period characterized by a permanent stable
high unemployment situation, there will be considerable increase in deaths due to
cardiovascular diseases, murders and cirrhosis of the liver. According to Banks and
Ullah (1988) there will also be increase in admission into psychiatric hospitals (for
mental illness) and also imprisonment arising from criminal tendencies of idle hands.

Fajana (2000) opined that unemployment can lead to loss of status, loss of prestige and
economic strength or power as a result of the loss of wages and benefits of job, infliction
of psychological injury as result of the breakdown in social contacts and isolation from
the world of work, loss of responsibility, identity and respect which the position at work
ensures, loss of purchasing power, loss of union check off dues, loss of production and
stunting of gross national product, reduction in the pay roll tax revenues of the state.

2.2.4 The Youth Fare Worse than Adults

For more than a decade, evidence has been accumulating that youth unemployment is
following a different trajectory than adult unemployment, is shaped by different factors,
and is trending toward poorer outcomes. The problem persists in good economic times

14
and further worsens in bad economic times. Youth participation rates are falling relative
to adult participation rates, and youth unemployment rates are consistently 2-4 times
adult unemployment rates (ILO, 2012).

In contrast to the 12.7% global youth unemployment rate for 2011, the ILO’s 2012
Global Employment Trends report states that the global adult unemployment rate was
only 4.8 percent last year while the adult rate has already begun to decline from its 2008-
9 peak. Youth unemployment has fallen only marginally, by 0.1 percent. The ILO
estimates that youth unemployment represents nearly 40 percent of total global
unemployment.
Many factors are responsible for the difficulties that youth experience in initial
workforce entry. These include:

• A lack of information, networks and connections among youth, especially youth

from families lacking significant social capital. Many young people lack knowledge
of what the world of work is actually like, and have not given careful thought to their
own potential career choices. They have not used their time in school to prepare
appropriately for realistic career paths. They lack informal networks and connections
that are traditionally the major source of information about job opportunities. And
they do not know how to navigate the labor market to identify and pursue available
jobs or to find and use the most relevant training resources (ILO, 2010).

• A lack of skills relevant to the workplace. Even those young people who have
pursued a course of study with a specific career in mind often find themselves with
general or theoretical knowledge that does little to prepare them for the actual tasks
they will encounter on the job. This is partly the fault of school curricula and poor
connections between employers and the educational system. Young people also lack
specific “21st century workplace skills” such as cooperation, communication, critical
thinking, creativity, and a focus on the needs of the enterprise.

15
• A lack of experience and credentials that address employers’ risk in making hiring
commitments. Many employers are skeptical about young people’s ability to apply
the skills they learn in schools to the practical challenges of the workplace. They also
question the social skills and work ethic of the youth. They see these deficits as a
significant barrier to the productivity of inexperienced young people, and at the same
time they are reluctant to invest resources in training young people when more
experienced adult workers may be unemployed and available for hire.

• A lack of available jobs suited to entry-level skills. In some labor markets, especially
in the developing world, there is simply a demographic mismatch between the
number of young people seeking work and the level of local economic activity. Most
available work may be in informal or underdeveloped industry sectors. There may be
a severe shortage of locally available jobs that are entry-level but that still lead to
meaningful careers (ILO, 2012).

2.2.5 Consequences of a Lost Generation

The most important consequences of youth unemployment extend beyond the impact of
temporary labor market fluctuations. The experience leaves a permanent imprint on both
individual life outcomes and on national development trajectories.
A series of studies starting with Andrew Sum (2000) in the U.S. and Kevin O’Higgins
(2003) for the World Bank suggest that young people who have difficulty in their early
integration into the world of work suffer lifelong “scarring” effects that diminish their
resiliency and ability to thrive in a dynamic and demanding labor market.

A 2007 study by the Prince’s Trust (www.princes-trust.org.uk), the Cost of Exclusion,

cites evidence of long-term wage and employment impacts of youth unemployment:
every 3 months of unemployment at age 22 is associated with an additional 1.3 months
of unemployment between age 28 and 33. Persons who experience 26 months of
unemployment before age 22 typically earn $1400-1650 less than their peers at age 26,

16
and $1050-1150 less at age 30. A similar study recently cited in the Economist
suggested those men who experience a year of unemployment before age 23 will earn
23% less than their peers 10 years later, and 16% less 20 years later.
In addition, persons who experience extended unemployment in youth are at increased
risk for other social pathologies. Direct poverty’s effects on unemployed young people’s
families include “considerable cognitive, health, nutrition and psychological deficits” for
children raised in poverty (Sum, 2002). Chronic unemployment is associated with
increased incidence of criminal behavior (ILO, 2000; Kotloff, 2004). As these young
people grow older and raise families, their own failure to accumulate economic and
social capital perpetuates the same cycle for their children.

High rates of youth unemployment also represent a wasted resource for developing
economies. Poor youth labor market participation limits the inputs available for urgently
needed growth and makes it harder for developing countries to realize the benefits of
labor-intensive growth strategies.

Developing countries pass through a unique demographic “window” where the youth
population is maximized before birth rates begin to fall toward a more “developed
economy” pattern – their success or failure in realizing the economic potential of young
people during this “low dependency ratio” period can make the difference between
sustained and faltering long-term development (Dhillon and Yousef, 2007).

In the developed world, underemployment of youth contributes to the fiscal challenges

of countries facing a narrowing worker base for their old-age pension systems (Heet,
2003). The Prince’s Trust 2010 update to the Cost of Exclusion estimates that youth
unemployment costs the UK economy more than £155 million ($247 million) per week
in benefits payments and lost productivity, not including the costs of youth-associated
crime - another £23 million ($37 million) per week. The study calculates that the

17
lifetime cost of educational underachievement for today’s 17-24 year-olds will be £22
billion ($35 billion) (Heet, 2003).

2.2.6 Young People as a Talent Resource

The current economic situation creates a sense of urgency in devising ways to boost the
creation of jobs, and to improve young people’s access to those jobs. But the solutions
we develop can and should be sustainable on their own terms. In this way they will add
to the permanent accumulation of tools and strategies that can help address both cyclical
downturns and long-term structural challenges, and that can improve school-to-work
transitions and the participation of young people in decent work (Sum, 2002).

In laying out the case for business initiatives to improve youth employment outcomes, it
is important to articulate a value proposition for employers that can be the foundation of
a sustained policy and sustained investment.

2.3 Empirical Literature Review

Unemployment is defined as a state of joblessness. It is a situation in which a person has
no activity that can earn him or her money as well as income. Unemployment occurs
when a person who is actively searching for employment is unable to find work
(Semboja, 2007).

The World Bank defines unemployment as the share of the labor force that is without
work but available for and seeking employment.
Unemployment is defined as by the Bureau of Labor Statistics (BLS) as people who do
not have a job, have actively looked for work in the past four weeks, and are currently
available for work (ILO, 2012).

Full employment is a situation in which all available labor resources are being used in
the most economically efficient way. Full employment embodies the highest amount of

18
skilled and unskilled labor that could be employed within an economy at any given time
(Lee, 1996).
The total population of Tanzania is 44 million. 33 % of the total population is youth, and
68 percent of the active labor force is young people. A youth in Tanzania is defined as a
person between the ages of 15-35 years. The core problem facing youth in Tanzania is
unemployment. This problem is characterized by lack of job opportunities in urban
areas, and underutilization of the majority of the national labor force (NBS, 2012).

Youth from primary, secondary and high learning institutions entering the labor force
annually is about 700,000 but only 40,000 get employment into the formal sector.
The incidence of unemployment among the youth is relatively high. The youth constitute
60 % of all people who are unemployed. According to the Labor Force Survey 2001
unemployment rate for the whole country is 12.9 percent. Almost half of the
unemployed live in urban areas. 46.5 percent of active people in Dar es Salaam are
unemployed. Unemployment for other urban areas is 25.5 percent, and for rural areas is
8.4 percent (NBS, 2012).

Unemployment for people aged 18-34 was 8.6 in the rural areas and 41.4 per cent in
urban areas. The youth aged between 15 and 34 years are more vulnerable to
unemployment. Rural youth grow up in a culture that does not typically support
entrepreneurship. They often seek employment by migrating to nearby cities and towns.
When they could not find jobs in town they engaged in dangerous behaviors such as
petty theft, armed robbery, drug abuse and unsafe sex, which cause other social
problems like spread of HIV/AIDS among youth, family crises, mental disease, and
deaths (NBS, 2012).

2.3.1 The National Employment Policy

In growing economies of third world countries particularly Tanzania, employment is a
core problem. If this state of affairs is left unchecked it will have severe consequences in

19
the society. These include lack of harmony, peace and a state of social in security. The
Human Resources Deployment Act No 6 of 1983 is one of the strategies employed by
the government to countercheck this problem/that is the problem of lack or employment
opportunities or unemployment.
In its efforts to deal with this problem the government has collaborated with the
Association of Tanzania Trade Union (OTTU), the International Labor Organization
(ILO), the United Nations Development Program (UNDP), donors and different local
experts.

The main limitation in getting a solution to the employment problem is lack of a

National Employment Policy. Investors, researchers and various commissions have
observed this bottleneck.
In view of this observation and in line with the current ruling party – CCM - manifesto
to combat unemployment, the government prepared the National Employment Policy
which was sanctioned by the cabinet in April 1997.

The National Employment Policy identifies two categories of employment namely wage
employment and self-employment. This policy is the vision leading to effective
utilization of available labor force and tapping available natural resources. It has also
dealt with the issue of administrative and management cost.
The major need of the policy is to help generate self-employment as independent
businessmen or entrepreneurs, instead of banking on salaried or wage labor
(www.tzonline.org).

2.3.2 Employment Rate

The world is facing a worsening youth employment crisis. Young people are three times
more likely to be unemployed than adults and almost 73 million youth worldwide are
looking for work. The ILO has warned of a “scarred” generation of young workers
facing a dangerous mix of high unemployment, increased inactivity and precarious work

20
in developed countries, as well as persistently high working poverty in the developing
word.
Across the African continent, more than 15 million young people are unemployed. Most
of those who are working earn less than two US dollars a day (Bhagwati and
Srinivassan, 2000).

Despite its growing economy, Tanzania is facing a youth unemployment crisis rivaled
by few other countries in the world. Tanzania ranks among the world’s 30 fastest
growing economies and spends a higher percentage of its GDP on education, which is
higher than all but 26 others. In theory, this should correspond to the rapid creation of
new jobs and an abundance of well-educated young people to fill them (NBS, 2012).
In 2012, a survey by the non-governmental organization Restless Development showed
that out of over 1,000 young people across Tanzania, only 14 percent reported working a
formal, wage-earning job (NBS, 2012).

Unemployment rate in Tanzania decreased to 10.70 percent in 2011 from 11.70 percent
in 2007. Unemployment rate in Tanzania averaged 11.88 Percent from 2001 until 2011,
reaching an all time high of 12.90 Percent in 2001 and a record low of 10.70 Percent in
2011. Each year 900,000 young Tanzanians enter a job market that generates only
50,000 to 60,000 new jobs (NBS, 2012).

The core problem facing youth in Tanzania is unemployment. This problem is

characterized by shortage or lack of employment or job opportunities in urban areas, and
under-utilization of the majority of the national labor force in the rural areas. Estimates
show that there are 700,000 new entrants into the labor force every year of which
500,000 are school leavers (primary and secondary) with little or no skills. Out of those
only 40,000 are employed in the formal sector, leaving a total of 660,000 to join the
unemployed or underemployed reserve. The informal sector absorbs the bulk of the

21
labor force but it is stretched to the limit. Informal sector employment is growing at 2.4
per cent annually, which is below the growth of the labor force 3 per cent (NBS, 2012).
Youth are an important resource. They have a very important role to play in socio-
economic development of the nation. Apart from being bigger in number, the youth are
energetic, courageous and often have new ideas that can make a vital contribution to the
socio-economic development if they are well organized and involved in development
issues.

However, despite being the largest group of the national population (33%) consisting the
largest labor force (68%), young people throughout the country face critical problems
which do not only make them unable to participate fully in the development of the
country but have resulted into other problems. The youth have a greater potential to
learn new techniques and are more flexible in adapting to changing conditions.
Unemployment of graduates from institutions of higher learning has grown to levels that
are raising concern (ILO/UNDP 1991; Mjema, 1997).

2.3.3 Trade Liberalization Effects on Employment Status in Tanzania

The process of trade liberalization caused poverty. Indeed, trade liberalization appears to
have ambiguous effects on poverty reduction, particularly in the least developed
countries (UNCTAD, 2004). Although there is evidence that trade liberalization is key
for achieving higher economic growth and perhaps a necessary condition for poverty
reduction, a valid criticism of trade liberalization involves the issue of income
distribution. Most trade models demonstrate that trade liberalization causes a
redistribution of income between individuals and sectors within the economy. In other
words, some individuals and sectors gain from free trade while others lose.

Understanding how trade liberalization makes some individuals and sectors lose is
therefore very important in designing required policies (such as social safety nets and

22
institutional development) to help the poor to be in a position to better take advantage of
the opportunities and face the challenges of trade liberalization (McCulloch et al., 2001).
Trade liberalization has affected some sectors in Tanzania. One such sector is the labor
market. Graduates face unemployment on account of increasing competition and
international trade. The policy has affected these issues by creating certain economic
factors that disallow or allow various employment issues. International competition,
from the newly industrialized countries, will cause unemployment growth and increased
wage disparity for unskilled workers in industrialized countries. Imports from low-wage
countries exert pressure on the manufacturing sector in industrialized countries and
foreign direct investment (FDI) is attracted away from the industrialized nations,
towards low-waged countries.

Economic liberalization will result in unemployment and wage inequality in developing

countries. This happens as job losses in uncompetitive industries outstrip job
opportunities in new industries. Workers will be forced to accept worsening wages and
conditions, as a global labor market results in a “race to the bottom”. Increased
international competition creates a pressure to reduce the wages and conditions of
workers.

Globalization also reduces the autonomy of the nation state. Capital is increasingly
mobile and the ability of the state to regulate economic activity is reduced. In
industrialized countries an average of almost 70 per cent of workers are employed in the
service sector, most of which consists of non-tradable activities. As a result, workers are
forced to become more skilled and develop sought after trades, or find other means of
survival. Ultimately this is a result of changes and trends of employment, an evolving
workforce, and globalization that is represented by a more skilled and increasing highly
diverse labor force, that are growing in non standard forms of employment (Markey et
al., 2006).

23
2.3.4 Constraints and Challenges to Youth Employment
Lack of Employability
It has been argued that there are too many people lacking the necessary education and
relevant training for good, productive jobs; and there are too many unproductive jobs
with poor remuneration (Ikiara and Ndungu, 2002; MFPED, 2002; URT, 2002).
Education begins with literacy, and in spite of vast improvements on this front, there is
still a huge literacy gap. Like other poor developing countries, training in East Africa
remains largely unrelated to labor market needs. Young people often lack access to labor
market services, and support is needed to help them secure decent and productive work.

In practice, there are many complex structural and frictional constraints related with lack
of employability (MFPED, 2002; Manda et al., 2003; Semboja, 2005). These include
preference by employers, for experienced workers; lack of work experience during
school years; poor quality in the education; inadequate preparation of the youth in career
development and low level of information technology; a stigma on the part of private
sector employers; mismatching between schools and labor market long-term transition
from school to the labor market; personal factors such as satisfaction level and family
dependence; job seekers looking for prominent and better paid jobs.

Inadequate Employment Creation

There is lack of an enabling environment for paid employment creation in the formal
private sector. Employability in the formal private sector requires not just appropriate
skills and training, but also public policies that lead to new employment opportunities
where these skills can be used. East African countries have pursued a number of
structural reforms to support a formal private sector (Kulundu, 2003; Semboja, 2005;
MFPED, 2002c). These reforms include maintaining macro-economic stability; review
of the tax regime; simplification of licensing procedures; and implementing programs
for strengthening the business environment. Strengthening the business environment
entails, among others, the implementation of competition policies.

24
However, many suggest that structural reforms are incomplete and as such youth are
still at the cross-road (Semboja, 2007). While there were significant improvements in the
formulation of national development policies, implementation has not been satisfactory,
effective, consistent and acceptable by common people in these countries (URT, 2007).
The gains of macro-economic reforms have not been translated into effective ownership,
management and operation of economic resources, activities and processes. There is also
lack of regional integration in terms of job opportunities. In other words, some jobs
accept only residents from a particular region to occupy that vacancy. This in turn limits
opportunities for qualified cross regional youth.

Lack of Entrepreneurship skills and knowledge

Entrepreneurship is taken to refer to micro, small and medium scale enterprises,
(MSMEs), and capacity to own, manage and operate these enterprises. In the current
East Africa context, MSMEs are understood to be independent business undertakings
where operational and administrative managements are in the hands of one or two
persons usually the owner(s) / manager(s) who are also responsible for making major
decisions of the enterprise. These MSMEs are in both formal and informal sectors
engaging in farm and non-farm economic activities such as manufacturing, mining,
commerce and social services. MSMEs are more effective in the utilization of local
social and natural resources using simple and affordable production technology. Also,
MSMEs are better positioned to satisfy limited demands brought about by small and
localized markets due to their lower overheads and fixed costs 2005).

Although micro, small and medium scale informal businesses are dynamic and
employment generating entities, they are not socially and economically preferable jobs.
This results in a kind of frictional unemployment where young job seekers prefer large
companies and therefore tend to wait for a satisfactory job to come up. Several studies
have established that there are many complex constraints that face small entrepreneurs in
the process of owning, managing, operating and developing their enterprises (Semboja,

25
2005). Many micro and small sized enterprises in East Africa are informal because the
administrative procedures for business registration are too cumbersome, long-winded or
costly. The barriers to setting up new businesses are particularly high for young people
who on the other hand face complex entrepreneurship barriers.

These structural problems include the lack of voice and representation; and lack of
access to credit and seed funding, since young people lack the collateral that banks
require for a loan. Isolation and lack of support are problems many young women and
men entrepreneurs experience and this often prevents them from gaining a foothold.

Access to effective business advisory and support services and the capacity to deliver
them is critical in promoting youth entrepreneurship. Studies suggest that there are
existing initiatives taken by East African national governments, public agencies,
universities and the private sector, though they remain isolated (Semboja, 2007).

Equal Opportunities for Young Women and Men

There are socially desirable situations, where boys and girls have equal access to
education and where girls are doing better than boys at school. In East African
economies girls are not getting the same education opportunities as boys, which results
in serious gender gaps in literacy (Okojie, 2003; Semboja, 2007). Regardless of these
differences in education systems in these East African countries, young women have in
general greater difficulties than young men in entering and staying in the job market,
because of discriminatory policies, structural barriers and cultural prejudices.

There are wide variations in female labor force participation between and within social
economic sectors and regions in East Africa. Studies suggest that labor force
participation rates are higher for women than for men in rural areas where production
systems are still predominantly family based (URT, 2005). In the rural areas, women are
mostly concentrated in agriculture, and within agriculture, in food production.

26
There is also an increasing number of women employed in the formal sector. But formal
wage employment, whether in the public or private sector, is dominated by men and it
offers relatively limited employment to women. The share of women employed in
manufacturing, mining, communication and construction sectors is low. Given limited
opportunities in the formal modern sectors, the majority of women in urban areas are
self-employed in the informal sector. The most common entrepreneurial activity for
women is retail trade, handicrafts, food processing, services and cottage industries.

Furthermore, unemployment continues to be higher among women than men. Women

face various structural constrains on their effective participation in economic activities
(Okojie, 2003). These include: [1] poor customary laws and norms which impede
women to a greater extent than men from obtaining land, credit, productive inputs,
education, information, and healthcare; [2] the coexistence of multiple laws which create
ambivalence (for example, customary and statute laws relating to marriage and
inheritance); [3] gender bias in access to basic human resource development services
such as education, training and health, resulting in gender gaps in adult and or youth
literacy rates, and; [4] time poverty, resulting from women’s multiple and competing
reproductive and productive responsibilities.

Increase in Global Market Competition

The increase in global market competition has given rise to the need to produce
graduates that could meet the need of modern world employment skills. In today’s labor
market, employers of labor attach more importance to graduate employability which
seems to refer to work readiness, that is, possession of the skills, knowledge, attitudes
and commercial understanding that will enable new graduates to make productive
contributions to organizational objectives soon after commencing employment. Indeed,
studies of employer demand for graduates in engineering and science disciplines have
found that appropriate work experience and evidence of commercial understanding rank

27
highly as selection criterion because of commercial pressures to seek graduates who will
not require long ‘learning curves’ when they start employment (Mason, 1998, 1999).

Skill Mismatch
Success in the graduate labor market is typically defined as graduates securing
employment in jobs that make appropriate use of the skills and knowledge developed in
the course of their university studies (Manson et al., 2006). In matching theory, labor
market ‘failure’ on the part of individual graduates’ unemployment and under-utilization
of graduate level skills in employment reflects a mismatch between graduates and
employers, which may come about for a number of reasons.
For instance, Coles and Smith (1998) emphasize that in a random, matching model a
mismatch between job seekers and employers may arise because of imperfect
information, resulting in time and search costs for prospective partners to obtain
information about better matches.

Determinants of Skill Mismatch

In general, a skill mismatch can occur between the educational qualification acquired by
an individual and what is demanded in the labor market. Boateng (2002) lists the
determinants of such mismatch as: the type and quality of curriculum, career and
academic advisory services; admission and evaluation policies in the tertiary sector; and
the role of faculty boards and employers association in the delivery of education
services.

Variation in Youth Unemployment

The unemployment rates of youth vary with their qualifications. In OECD countries the
unemployment rate decreases with the level of education (O’ Higgins, 2001). On the
other hand in developing regions it has been argued that the better educated experience
higher unemployment rates, which has been called the “educated youth hypothesis”
(Lebbrandt, 2004). The premise is that youth from more privileged backgrounds focus

28
their job search on better paid public sector positions and are as a consequence wiling to
“queue” for such jobs and remain unemployed. The poorer educated youth do not have
the financial means or support to endure unemployment and therefore, seek work in
lower paid, poorer quality jobs in the informal economy.

Information Technology and Opportunity for Employment

Information technology is one skill area that is now essential for young people to gain a
foot hold in the labor market in developed and increasingly in developing countries. This
has been driven by skill–based technological change and globalization. The creation of
high skilled information technology work force has been a great challenge to world
economy. This work force will be a key component in a growing economic sector. The
IPKO Institute of Higher Learning in Pristina has focused computer and internet
technologies (IT) and which would utilize the latest in distance learning methods. More
importantly, it would produce graduates who fill jobs in a job market that is crying out
for more computer specialists, web designers, network managers ‘and other IT’
specialists.

Enhancing Full Employment through Internship

The issue of internship in enhancing employment is receiving more attention in the labor
market. An internship opportunity provides students or university graduates with
multiple periods of work in which the work is related to the student’s course of studies.

According to Adeyemi (2008), the Chief Executive Officer, Skillbase Nigeria, a national
survey conducted recently showed that employers and business organizations are more
likely to extend job offers to 70% of their interns. He said that in 2006 - 2007, employers
offered jobs to 67% of interns that have served with them. The Human Resource
Manager of Domingo Industries, Olasi (2008) said that there are indications that full-
time recruits coming out of internships are more successful as employees than those
drawn from outside of the internship process.

29
2.3.5 The Role of Higher Education in Labour Market
Youth Transformation for Job Readiness
Our society today is facing the challenges of gaining education that provides students
with the right set of skills and knowledge demanded by the labor market. Higher
education has a major role to play in empowering youth for the labor market. There is
need for higher education to view education in the modern world. The reality recognizes
that the primary purpose of higher education is to transform students into critical,
lifelong learners. It also explores the development of employability agenda in higher
education, examines the nature and implication of organization change for graduates and
assesses what attributes graduates will need in the next decade (McClellan, 2001).

Education for Intellectualism

Higher education was conceived and designed to foster intellectualism. In the classical
sense, in the higher education environment, students were supposed to learn the body of
knowledge available in a particular field, the theoretical framework, developed in that
area and continue adding to it through research and writing. In this traditional
framework, knowledge existed for the sake of knowledge and the pursuit of knowledge
was itself a worthy goal. Education in that sense was designed to produce intellectuals
who would work in a very limited number of professions: lawyers, clergymen, doctors,
professors and so on (McClellan, 2001).

Practical Oriented Education

In the modern world, however, the classical approach is no longer defensible for the vast
majority of students. Those who lived and worked outside the “ivory tower” of academia
truly lived in a different world in which they had little or no contact with the intellectual
world. Education nowadays has to be much more practically oriented and focused on
one primary objective of producing students who are ready to fill available jobs in a
competitive economy. This means that higher education must be more closely tied to the
businesses and industries that manage the market economy (McClellan, 2001).

30
Producing Quality, Relevant and Employable Graduates
The reality of education today is that higher education must turn out students who are
ready to fill available jobs in the market place, who are ready to work in flexible
organizations that will be constantly changing. The students themselves will continue to
learn and grow intellectually throughout their professional lives so that they can adapt to
fit the needs of their organizations and “grow” with them. Higher education needs to
produce graduates who have the personal, social and communication skills needed in the
modern world. For example, today employers typically look for people who have good
communication skills. They want people who are team players and those who can put
forward ideas persuasively. They also need people who have good social skills, who are
able to relate to other people well. Most importantly, though employers need people with
real skills who possess the knowledge required on their job.

The educational system produces graduates who have the ability to think critically, to
challenge assumptions, to ask questions and to find out answers on their own. It must
produce students who are not afraid to have ideas, who are not afraid to advocate their
ideas and who are willing to listen to and accept the ideas of others. They must know
and accept the principle of compromise, that there are seldom absolutes in the real world
and that people working in teams and working together on projects must adapt to each
other, as well as to the demands of the work place (McClellan, 2001).

2.3.6 Management Strategies to Enhance Relevance of Courses in the Labor

Market
Higher education is facing challenges of producing graduates that are relevant in filling
the available vacancies in the labor market. It is very expedient for school administrators
to look inward, devise series of means and strategies to produce students that could meet
the required skills and knowledge of modern labor market (McClellan, 2001).

31
Collaboration between Employers of Labor and Higher Education
The new reality of education in modern world is that there should be contact and
interaction between employers and higher education administrators. In other words,
industry and education should team up to respond to a need in the market place, in a
practical manner. Higher education should therefore make closer links with employers to
help them identify and adopt strategies to overcome any skills shortages and to be a
responsive provider of education in areas of higher level skill shortage (McClellan,
2001).

Curriculum Adaptation to Meet Labor Market Requirements

Higher education has to focus curriculum that is aimed at a growing job market, it could
be tied closely to the private sector through its partnership and its students will benefit
from studying with people who are not only “academics” in the strict sense of the word,
but which are also actively working in their field of study and have first-hand contact
and experience with the market place. These people are best able to decide what skills
and knowledge students need for today’s job market and can constantly adapt course
content and classroom discussion to the real needs of the students (McClellan, 2001).

Making Internship a Normal Part of Education Experience

The main job of a school, a university or any institute of higher learning is to prepare
students for a real job in the real world so that they can go out and take their rightful
productive place in the society. To do this, the educational system must be in close
contact with the business community and be willing and able to determine and respond
to the needs of that community. Higher education can make internships and work study a
normal part of the education experience. In this way, students are able to apply their
newly gained knowledge to the real world and then to continue their education with a
more certain knowledge of how they will apply it in the market place. According to
Olasi (2008) “graduates looking to secure good jobs must use the benefit of internship to

32
secure their future and their career, no matter what the starting packages are for a start. It
would solve the problem of unemployment.

Administrators and Business Community to Maintain Contact through Research

and Projects
Administrators and academics should maintain contact with the business community
through research and projects done on contract, through participation in professional
associations and by deliberate efforts to ascertain the needs of the private sector on a
regular basis (Olasi, 2008).

Focusing Programmes that Enhance Self-employment

Higher education should focus and design programmes that enhance self-employment.
Attention should be focused on the need to make students self-employed. The
importance of vocational courses in this regard cannot be over emphasized. Vocational
courses would not make prospective higher education graduates depend only on white-
collar jobs. Hence vocational courses such as agriculture, food technology, home
economics and technical courses deserve attention. Highly skilled technological courses
such as web designing, computer engineering and science and space technology deserve
attention in higher education in this age (McClellan, 2001).

Professional Orientation for Educators

Professional orientation for educators is required so as to keep them abreast of time in
knowledge and technological skills. Educators should make the contents of their course
materials up to date, relevant and challenging to students. In this age of information and
communication technology (ICT) educators in this part of the world cannot afford to lag
behind in the committee of nations. They should be able to compare favorably with their
colleagues across the globe, so that they are able to produce graduates who are able to
secure jobs anywhere in the world. The world of jobs should be opened to higher
education graduates.

33
2.4 Conceptual Framework
Bailey’s Model of Employers’ Beliefs
Although both human capital and job-signaling theories seem to verify the intuition that
schooling has a positive effect on individuals’ labor market outcomes, it remains unclear
what really matters in the processes of employers’ recruitment decisions. There has been
a long debate about the results of many empirical studies on what mechanisms (human
capital or signal) work in practice (Kjelland, 2008: 71–73).
Moreover, studies applying either Human Capital Theory or Signaling Theory mainly
investigate the relationship between education and salary with little attention to
employers’ perceptions. When it comes to the transition from education to the work
place, employers’ perspectives are crucial. Many studies exploring employers’ views on
the relevance of international education experience to work focus mainly on the
expected skills that individuals gain from their education. In this regard, they have not
gone beyond either a Human Capital or Signaling Hypothesis, seeing educational output
as a substance that can be identified and measured objectively.

In contrast, Bailly (2008) takes a non-substantiality approach to conceptualize

educational output with a strong emphasis on employer’s beliefs. To him, educational
output instead of being a substance is susceptible to multiple interpretations. As he
states, one of the consequences of emphasizing the role of beliefs is that educational
output, as one element in that environment, no longer has the characteristics of a
substance. Rather, it becomes dependent on economic agents’ beliefs and
representations and on the (potentially multiple) evaluations to which they give rise.
Educational output is, in this conception, what economic agents evaluate as such.
According to Human Capital Theory and Signaling Theory, both regarded as a
substantiality approach by Bailly, the importance of education in labor market outcomes
is that it either increases the students’ productivity-enhancement skills or signals the
graduates’ innate abilities to employers. However, Bailly argues that the validity of both
human capital and signaling hypotheses depends on the employers’ belief systems. His

34
conceptualization corroborates social and cognitive psychologists’ argument that
individuals use schemas, frames, cognitive frameworks or belief systems to select and
process information (Simon, 1957).

As belief systems become part of individuals’ unconscious and as these belief systems
control that unconscious, they also govern employers’ decisions on employment.
Accordingly, Bailly describes the development of employers’ belief systems in three
sequential stages. In the first stage (Fig.1), an employer has no experience of hiring job
applicants with certain types of education credentials. The employer makes recruitment
decisions based on his/her initial beliefs about the applicants, or “conditional
probabilistic beliefs” (Spence, 1973: 359).

Specifically, the employer tends to attribute an anticipated level of productivity to these

people depending on the information transmitted by job-applicants’ educational
credentials, and then makes recruitment decisions based on that. The information
conveyed by the educational credentials can be understood as initial signals.
The second stage (Fig.2) commences when the applicants are recruited. When the
employer has more experience of hiring certain educational credential holders, the initial
signal effects tend to become less influential. By observing the quality of these recruited
employees, the employer’s initial beliefs are adjusted.

35
Figure 2.1: Conceptual Framework

Initial signals An employer’s initial Decision making on

beliefs on educational recruitment
output

An employer’s adjust Decisions on recruitment Intended and unintended

beliefs performance of
employees at work

Self-confirmation or correction
through trial and error process

Source: Research Data

If the employees’ performance is the same as assumed by the employer before

recruitment, the employer’s beliefs will be self-confirmed. Otherwise, the employer will
correct his beliefs. “When he next comes to recruit, an employer will rely on his (new)
beliefs, which he will adjust again depending on the difference in productivity observed
after recruitment” (Bailly, 2008: 962). The third stage can be found when the process
continues until equilibrium is reached. That means the employer, through these
successive learning processes, has accumulated enough experience to discover the
candidates’ ‘true’ value.

2.5 Conclusion
All employment sectors must have more or less similar national long-term development
frameworks or visions. These may form common base for youth employment solutions,
different countries in the world, especially developing countries should develop an
integrated national vision, policy and plan of action for youth employment.

36
One of the strategic moves and preparatory activities is the regional integration of the
labor market, with the goal of facilitating a free movement of factors of production,
including youth labor power. This brings to the fore the need for national states to
pursue open door labor market and employment policies. It is the mission of these
policies to put an enabling environment for increasing youth employment and social
security in the rural and urban areas.

Among other things, this entails preparation of the youth for work: ensuring quality
basic education for all young men and women, and developing a demand-driven
vocational and technical education system; supplying quality jobs through an enabling
environment for transforming the traditional agricultural and informal sector activities
into formal modern commercial activities; promoting equal youth employment
opportunities for men and women and addressing specific needs of vulnerable groups
such as youth with disabilities; fostering entrepreneurship and empowering youth and
facilitating their entry into business; and promoting youth employment strategies that
enhance labor mobility, social security, income and prevent social exclusion.

The top priorities for youth employment strategy focus on what is known as the four E’s:
Employability; Equal opportunities for young men and young women; Entrepreneurship;
and Employment creation. The general policy strategy is to design and implement a
youth employment action plan to facilitate and support provision of effective, efficient
and transparent service for promotion of youth mobility and employment.

37
 CHAPTER THREE
RESEARCH METHODOLOGY

3.1 Introduction
This chapter describes how the study was conducted. It covers the research design, data
collection method, data analysis, sample size and types of data.

3.2 Study Area

The study for research was carried in Dar es Salaam as it was easier to obtain and collect
information from different respondents.

3.3 Research Design

Kothari (2004) defines research design as the arrangement of conditions for collection
and analysis of data in the manner that aims to combine relevance to the research
purpose with economy in procedure. This study adopted case study as research design. A
case study is a process or record of research into the development of particular person,
group or situations over a period of time. Research population comprised of job-seeking
graduates.
The researcher employed case study because of its advantages which includes fully
understanding of the behavior patterns of the concerned unit, it also facilitates intensive
study which is generally not possible if other methods were employed, this method
allows more than one data collection methods to be used and also it facilitates the
drawing of inferences and helps in maintaining the continuity of the research process.

3.4 Study Populations

Study population is the totality of objects under investigation (Kamuzora and Adam,
2008). Population refers to a large group of people possessing one or more
characteristics in common on which a research study focuses (Creswell, 1994). In this
study population of study was referring to people that are directly or indirect involved
with the employment for graduates and graduate themselves.

38
3.5 Sample and Sample Size
3.5.1 Sampling Techniques
This study employed purposive sampling which, according to Kothari (2004), involves
the selection of the sample based on who the researcher thinks would be appropriate for
the study.

3.5.2 Sample Size

According to Kothari (2004) sample size refers to the number of items to be selected
from the universe to constitute a sample. The researcher used a representative sample
from each targeted population. Also the sample size of the targeted population depended
on the size or largeness of the population. The sample size was 56 respondents, which
was arrived at purposive sampling as indicated in the table below (table 3.1). This
sample was selected due to the associated in finding the respondents that will serve as
the valid candidates for data collection. Below is the description of each of the sample
collected from the three Municipals and the percentage the individuals they represent to
the whole population.

Table 3.1: Sample Size

Categories of Respondents Ilala Kinondoni Temeke Total
Youth Unemployed 25% 25% 25% 75%
Citizens 8.9% 8.9% 7.2% 25%
Total 33.9% 33.9% 32.2% 100%

Source: Researcher, 2014

3.6 Source of Data

Both primary and secondary data were collected, as explained in the sections below.

39
3.6.1 Primary Data
Primary data are those collected by the researcher herself from the field. They are first-
hand information (Adam, 2007). Primary data are obtained through questionnaires,
interviews and observation.

3.6.2 Secondary Data

Secondary data are those which have been collected by other people for some other
purposes (Saunders et al., 2000). In this study, secondary data were retrieved from
various records such as performance reports on different departments, operational
reports, various documents such as journal articles and books.

3.7 Data Collection Methods

The research involved the following data collection methods for primary data.
3.7.1 Interview
According to Kothari (2004: 97), interview involves presentation of oral verbal stimuli
and reply of oral verbal responses. The researcher used in depth interview that made
easy the gathering of relevant information or data.
Thus in order to become well versed with the context of the study, both closed and open
ended questions were asked to respondents. Closed ended questions were meant to guide
the researcher keep track of the main issues to be investigated. While open ended
questions aimed at having a wider understanding of respondents’ feelings, views,
beliefs, perceptions, attitude and knowledge. In addition, face-to-face interview enabled
the researcher to interact with the research subjects in a natural setting. The researcher
interviewed government officials responsible for recruitment and some of the graduates
that did not have time to fill in the questionnaires.

40
3.7.2 Questionnaire
According to Kothari (2004:100) the questionnaire involves a number of questions
printed or typed in definite order on a form or set of forms. The study used both open-
ended and closed-ended questions in the questionnaire.
Both open ended and closed-ended questionnaire included in this study. Questionnaires
are useful tool in collecting data on the efficacy of employment and recruitment policy
in Tanzania. In open – ended questionnaire the respondents were required to fill in
empty spaces and be able to express their opinion and feelings. For closed questions the
respondents were required to tick or encircle to the appropriate answer.

3.8 Data Analysis

Data analysis is a process in which raw data is ordered and organized so that useful
information can be extracted from it. The data were presented and analyzed using SPSS.
In this research study measure of Central Tendency applied in order to analyze the data.

3.8.1 Data Processing

Data processing implies editing, coding, classification and tabulation of the collected
data so that they are amenable to analysis (Kothari, 1990:151). This is an immediate
stage between data collection and data analysis. The process was done to prepare raw
data and paving a way for smooth analysis.

3.8.2 Data Coding

Coding refers to the process of assigning numerals or other symbols to classes (Kothari,
1990:153). This was done by specifying the categories or classes into which the
responses were to be placed. This was done in order to improve the efficiency of
analysis.

41
3.8.3 Data Editing
Editing is the procedure that improves the quality of the data for coding. With coding the
stage is ready for tabulation. Data editing was done at the point of filling the
questionnaire (primary data), where further editing of primary data was done at the stage
of sorting and analysis (Kothari, 2006). Thus, at both the stages, the researcher reviewed
the extent to which employees’ motivation strategies impact on service quality in an
organization.

3.9 Data Reliability and validity

Reliability is the consistency of measurement, or degree to which an instrument
measures the same way each time; it is used under the same condition with the same
subjects. In short, it is repeatability of the researcher’s measurements (Iny, 2002). A
measure is considered reliable if a person’s score on the same test given twice is similar.
However, it is important to remember that reliability is not measured; it is estimated.
In order to increase the reliability of the data collection process, a pilot study was
conducted before distributing the questionnaire to respondents. This helped the
researcher to measure how well the instrument was understood by respondents, and
where difficulties in completing the questionnaire were noted, the researcher made
changes as appropriate, using words that would be well understood by respondents.
Validity is the accuracy and meaningfulness of inferences, which is based on the
research results. For purpose of making the study valid, the researcher design the data
collection tool based on the research question also the research question. The
questionnaire was also subject to scrutiny by researcher's supervisor and other research
experts' for validation purposes. After collection of data the inspection conducted in
order to omit some errors and making correction where possible.

42
 CHAPTER FOUR
RESEARCH FINDINGS

4.1 Introduction
This chapter presents data analysis, research findings and their interpretation.

4.2 Data Analysis

The study population that the researcher decided to work with represent sample from
each targeted population. Also the sample size of targeted population depends on the
size or largeness of the population. The sample size of the population is 56 respondents
that researcher worked with.

Data were analyzed based upon the research objectives of the study. SPSS and the
statistical technique of simple frequency distribution and percentages were used to
comprehend and analyze the data to differentiate responses. The study was guided with
these specific objectives:

i) To explore the perceptions of the people on the magnitude of unemployment for

graduates;
ii) To determine the causes of unemployment in Tanzania;
iii) To examine the consequences and implications of graduate unemployment in
Tanzania.

4.3 Research Findings

4.3.1 Gender of the Respondents
Table and Figure 4.1 show that 46.4% of the respondents were female and 53.6% male.
These results suggest that the sample was fairly representative as it reflects the female
and male ratio.

43
Table 4.1 Gender of the Respondents

Frequency Percent Valid Percent Cumulative Percent

Valid Male 30 53.6 53.6 53.6

Female 26 46.4 46.4 100.0

Total 56 100.0 100.0

Source: Research findings, 2014

Figure 4.1 Gender of the Respondents

4.3.2 Age of the Respondents

Table and Figure 4.2 describe the age of graduate job seekers. Findings show that the
majority (42.9% of the respondents) are in the 28 - 32 age group, followed by 23-27 age

44
group (37.5%) and 18-22 years (7.1%). The remaining 33-37 age group (7.1%) and the
last age group is 38 and above with 5.4%. These results suggest that the majority of
graduate job seekers’ age ranges between 23 and 32 years.

Table 4.2 Age of the Respondents

Valid Cumulative
Frequency Percent Percent Percent

Valid 18-22 4 7.1 7.1 7.1

23-27 21 37.5 37.5 44.6

28-32 24 42.9 42.9 87.5

33-37 4 7.1 7.1 94.6

38 and above 3 5.4 5.4 100.0

Total 56 100.0 100.0

Source: Research findings, 2014

Figure 4.2 Age of the respondents

45
4.3.3 Education of Respondents
Table and Figure 4.3 below indicate the education level of the respondents whereby
17.5% of the respondents were at the certificate level, 20% of the respondents were at
the diploma level, and 52.5% of the respondents were at the degree level. The remaining
10% of the respondents were at master level.

Table 4.3 Respondents’ Education Level

Cumulative
Frequency Percent Valid Percent Percent

Valid Certificate 6 10.7 10.7 10.7

Diploma 10 17.9 17.9 28.6

Degree 25 44.6 44.6 73.2

Masters 15 26.8 26.8 100.0

Total 56 100.0 100.0

Source: Research findings, 2014

Figure 4.3 Respondents’ Education Level

46
4.4 Perception of the people on the magnitude of unemployment for graduates
In order to establish the perception of the respondents on the magnitude of
unemployment for graduates students, the researcher had several questions that were
designed specifically in order to measures this. These questions are examined below
through being treated as subtopics.

4.4.1 Duration of Joblessness after Graduation

In this, the major aim was to assess the overall time that the respondents spent looking
for jobs after graduation. In order to provide answers for this, the researcher were given
several options which included 3 months; 6 months; 1 year; 2 years; and More than 2
years.
The results obtained in this shows that, 12.5% of the total respondents said they had
stayed 3 months, 21.4% of the respondents said that they had stayed 6 months, 53.6%
have said they had stayed 1 year. Those who stayed jobless for a year are the biggest
group. Only 8.9% of the respondents said they had stayed 2 years, and the last group
(3.6%) had stayed more than 2 years when they got a job. Table and Figure 4.4 below
show the responses obtained in this

47
Table 4.4 Duration of Joblessness after Graduation

Cumulative
Frequency Percent Valid Percent Percent

Valid 3 months 7 12.5 12.5 12.5

6 months 12 21.4 21.4 33.9

1 year 30 53.6 53.6 87.5

2 years 5 8.9 8.9 96.4

More than 2 years 2 3.6 3.6 100.0

Total 56 100.0 100.0

Source: Field data (2014)

Figure 4.4 Duration of Joblessness after Graduation

Source: Field data (2014)

48
4.4.2 Government Support to Job Seekers
Another essential point that the researcher wanted to establish on this section was the
overall respondent’s perception on the support provided by the government to the job
seekers. The reason for establishing this was to see whether or not the government
supports job seekers. The results obtained in this was as follows
Out of all questioned respondents, 32.1% of the respondents strongly agreed that the
government had been giving them support; 17.9% were neutral while the remaining 50%
of the respondents strongly disagreed with the view that the government offered them
support. Those who do not agree with the proposition are the majority. Table and Figure
4.5 below present this data

Table 4.5 Whether or not the Government Supports Job Seekers

Cumulative
Frequency Percent Valid Percent Percent

Valid Strongly agree 7 12.5 12.5 12.5

Agree 11 19.6 19.6 32.1

Neutral 10 17.9 17.9 50.0

Strongly disagree 20 35.7 35.7 85.7

Disagree 8 14.3 14.3 100.0

Total 56 100.0 100.0

Source: Research findings, 2014

49
 Figure 4.5 Whether or not the Government Supports Job Seekers

Source: Field data (2014)

4.4.3 Effectiveness of the Government Graduate Employment Policy

The researcher also, thought on establishing the effectiveness of the government
graduate employment policy. In this, the respondents were supposed to select whether
they think the policy is effective or not. The results obtained in this, was as follows;
Out of all respondents that were questioned in this, 30.3% of the respondents strongly
agreed that the government employment policy is effective; 16.1% of the respondents
were neutral, while the remaining 53.6% of the respondents strongly disagreed with any
suggestion that the government graduate employment policy would be effective. The
latter group is the majority. Table and figure below represents this data

50
 Table 4.6 Effectiveness of the Government Graduate Employment Policy
Valid Cumulative
Frequency Percent Percent Percent

Valid Strongly agree 11 19.6 19.6 19.6

Agree 6 10.7 10.7 30.4

Neutral 9 16.1 16.1 46.4

Strongly disagree 22 39.3 39.3 85.7

Disagree 8 14.3 14.3 100.0

Total 56 100.0 100.0

Source: Field data (2014)

Figure 4.6 Effectiveness of the Government Graduate Employment Policy

4.4.5 Effectiveness of the Government Recruitment Policy

After that, the researcher thought on the need to establish the overall effectiveness of the
government recruitment policy. In this, the results were as follows,
Out of all respondents that were questioned, 39.3% of the respondents strongly agreed
that the government recruitment policy is effective; 7.1% of the respondents remained
neutral, while the remaining 53.6% of the respondents strongly disagreed that the

51
government graduate recruitment policy was effective. The group that disagreed was the
majority.

Table 4.7 Effectiveness of the Government Recruitment Policy

Valid Cumulative
Frequency Percent Percent Percent
Valid Strongly agree 17 30.4 30.4 30.4

Agree 5 8.9 8.9 39.3

Neutral 4 7.1 7.1 46.4

Strongly disagree 20 35.7 35.7 82.1

Disagree 10 17.9 17.9 100.0

Total 56 100.0 100.0

Figure 4.7 Effectiveness of the Government Recruitment Policy

4.5 Causes of unemployment in Tanzania

After establishing the overall perception of the respondents on the magnitude of the
unemployment problems for graduates, what follows was to establish the actual causes
of unemployment in Tanzania. In this, the question posed to the respondents was open,

52
requiring them to provide answers they see fit to the researched problem. The results
obtained in this were as follows;
Out of all respondents that were questioned in this, 35.7% of the total respondents said
the education system is the major cause of the unemployment, and 28.6% of the
respondents said that lack of training facility to make graduates competitive in the job
market is the cause for unemployment. 14.3% of the respondents said that bad leadership
is the cause, and the remaining 21.4% of the respondents said that a poor graduate
employment policy is the cause of unemployment to graduate job seekers. Table and
Figure 4.6 below present the responses obtained

Table 4.8 Causes of Unemployment

Valid Cumulative
Frequency Percent Percent Percent

Valid Poor education system 20 35.7 35.7 35.7

Lack of training facilities 16 28.6 28.6 64.3

Bad leadership 8 14.3 14.3 78.6

Poor graduate employment

12 21.4 21.4 100.0
policy

Total 56 100.0 100.0

53
Figure 4.8 Causes of Unemployment

4.6 Challenges Facing the Graduate Job Seeker

During data collection process, the researcher thought on establishing the general
respondent’s answers on the challenges they face during the process of seeking jobs. In
this, the results obtained is as follows,
Out of all respondents that were questioned, 26.8% of the total respondents mentioned
lack of the real experience as the major challenge; 16.1% of the respondents mentioned
exceedingly high expectations by job seekers in the highly competitive job market;
21.4% of the respondents said that the downturn in the economy is the challenge, and
the remaining 35.7 % of the respondents said that poor government policy is one of the
challenges facing the graduate job seeker.

Table 4.9 Challenges Facing the Graduate Job Seeker

54
 Valid Cumulative
Frequency Percent Percent Percent

Valid Lack of real experience 15 26.8 26.8 26.8

Too high expectations 9 16.1 16.1 42.9

Down turn in the

12 21.4 21.4 64.3
economy

Poor government policy 20 35.7 35.7 100.0

Total 56 100.0 100.0

Source: Research findings, 2014

Figure 4.9 Challenges Facing the Graduate Job Seeker

Source: Field data (2014)

4.7 Consequences and implications of graduate unemployment in Tanzania

In order to establish consequences and implications of graduate unemployment in
Tanzania, the researcher had several key points to measures this.

55
The first idea was to measure the overall impact that can hinder graduate employments.
In this, several options were given to the graduates, and they were supposed to select the
most accurate ones. The results in this shows that,

Out of all respondents that were questioned, 32.1% of the total respondents mentioned
poor living conditions as the number one problem; 28.6% mentioned graduate
misconduct; 8.9% mentioned tribalism, and the remaining 30.4 % mentioned graduate
overdependence upon employment instead of being creators of employment.

Table 4.10 Problems Hinder Graduate Employment

Valid Cumulative
Frequency Percent Percent Percent

Valid Poor living conditions 18 32.1 32.1 32.1

Graduates engage
16 28.6 28.6 60.7
in misconduct

Tribalism in recruitment 5 8.9 8.9 69.6

Overdependence
17 30.4 30.4 100.0
on employment

Total 56 100.0 100.0

56
Figure 4.10 Problems Hindering Graduate Employment

After establishing this, the researcher thought on establishing the respondents answer on
the suggestions to Government and Private Institutions toward graduate employment. In
this, the aim was to establish what the respondents this is to be changed or improved by
the government or private institutions towards graduate employment. The results for this
were as follows

Out of all respondents that were questioned, 23.2% of the respondents are of the view
that the education system has to be improved; 32.1% of the respondents suggest that a
policy should be developed to support graduate job seekers; 25% of the respondents
would want to see recruitment policy in place; and the remaining 19.6% of the
respondents are of the view that new chances should be created for job seekers. table and
figure below present this data

57
 Table 4.11 Suggestion to Government and Private Institutions on Graduate
Employment
Valid Cumulative
Frequency Percent Percent Percent
Valid Improve education
13 23.2 23.2 23.2
system
Develop policy for
18 32.1 32.1 55.4
graduate job seekers
Develop a recruitment
14 25.0 25.0 80.4
policy
Create new chances for
11 19.6 19.6 100.0
job seekers
Total 56 100.0 100.0

Figure 4.11 Suggestions to Government and Private Institutions on Graduate

Employment

58
 CHAPTER FIVE

DISCUSSION OF THE FINDINGS

5.1 Introduction
This chapter presents the overall discussion of the findings that were obtained during
data collection process. In this, the researcher started by presenting the general details of
the respondents that was obtained. Then from there the researcher present the observed
data in relation to the study objective.

5.2 General Observation

In order to provide results for this, different forms of data were collected in order to
examine the challenges facing graduate jobseekers. In order to come up with better
results for this study, the researcher aim was to use graduate students as the major source
of data. The process of data collection was done through questioning the respondents
that provided a basis for this discussion. In order to clearly present the data obtained, the
presentation of the data will be based on how the obtained data answers the research
question.

To start with, the research had to collect the general demographic characteristics of the
respondents that were involved in the research. In this, attributes such as age, sex,
education level, and experience of the respondents were collected.

In terms of age the respondent, the distribution was fair as the respondent’s category was
evenly distributed from those with 23-27 years until those with 38+. Basically, in terms
of the age of the respondents, the researcher managed to cover the respondents from
various age groups hence the information generated can be said to come from
respondents from various age groups.

For the aspect of sex, unknowingly the researcher came to realize during data collection
that the total percentage of male respondents (53.6) was a bit bigger compared to that of
their female counterparts (46.4). However, during data analysis there was no observable
difference in terms of responses between the male and female respondents. Analysis

59
shows all respondents were aware and well equipped to provide sufficient information
that will be essential for tackling the research objective that were intended by this study.

5.3 Perception of the people on the magnitude of unemployment for graduates

In order to establish the perception of the respondents, the researcher had several items
in place that were essentially, used to assess this. These items included; Duration of
Joblessness after Graduation; Government Support to Job Seekers; Effectiveness of the
Government Graduate Employment Policy and Effectiveness of the Government
Recruitment Policy.
Data collected shows that, the duration of the graduate staying jobless after securing job
ranges from 3 months to more than 3 years. Majority of the respondents questioned for
this selected year (53%) as the time they spent jobless. This data concurs with what
Jumanne (2011) and Kumbilwa, (2013) proposed that, after 1 year of graduate spending
without jobs, they change their attitude to either personal employment of further
improve their education in order to reduce the overall competition in the job market.
Its terms of Government Support to Job Seekers; Effectiveness of the Government
Graduate Employment Policy and Effectiveness of the Government Recruitment Policy,
it was realized the overall response on these items were low. Though not in great
percentage, some of the respondents seemed to believe the support and policies are in
place. However, huge percentage of the respondents seemed to find faults with these
policies hence wanted more improvements in order to meet the current demands of
graduate job seekers. Okojie, (2003) in his paper titled “Employment Creation for Youth
in Africa: The Gender Dimension” and O‘Higgins, (2001) in his paper titled “Youth
Unemployment and Employment Policy” suggested that, the overall frustrations of
graduates students with unemployment is further geared by the poor support and
established policies by the government which fails to effectively handle the
unemployment problems. Hence there is a need to improve the overall support from the
government and the employment and recruitment polices established.

60
5.4 Causes of unemployment in Tanzania
During the data collection process, the researcher was also interested to establish the
causes of unemployment in Tanzania. In this, the respondents provided several answers
as the major causes of unemployment in the country. In this, the results obtained showed
that 35.7% of the total respondents said the education system is the major cause of the
unemployment, and 28.6% of the respondents said that lack of training facility to make
graduates competitive in the job market is the cause for unemployment. 14.3% of the
respondents said that bad leadership is the cause, and the remaining 21.4% of the
respondents said that a poor graduate employment policy is the cause of unemployment
to graduate job seekers. Basically, this data concurs with what scholars of employment
such as Semboja, (2002); Leibbrandt, (2004); and Economic Research Bureau (2006)
who provided cause of unemployment in African and Sub-Saharan African in particular,
and the above mentioned challenges have been the center of their attention.

5.5. Consequences and implications of graduate unemployment in Tanzania

The major issues that was discussed in this section was the overall respondents answer
on the improvement that can be made by the government and private institutions in order
to improve graduate employments. In this, several important things were mentioned by
the respondents, however, the most mentioned item include Improve education system;
Develop policy for graduate job seekers; Develop a recruitment policy; and Create new
chances for job seekers. the mentioned items have also been mentioned by scholars such
as Leibbrandt, (2004) who champions reforms in education systems in order to create
the environments which allows the graduates to employ themselves and Okojie, (2003)
who emphasizes on the reforms in government policy both recruitment and support
system in order to provide wide range of options for graduates and employ more people.

61
 CHAPTER SIX

SUMMARY, CONCLUSION AND RECOMMENDATIONS

6.1 Introduction
This chapter presents the summary, conclusion and recommendations with regard to the
findings of the research study.

6.2 Summary
Despite the recent encouragements towards economic growth in Tanzania,
unemployment is high and it remains to be one of the socio economic problems in the
country. This paper evaluated the challenges facing graduate job seekers, existing labor
market/employment policies and other interventions aimed at creating jobs, relying on
review of policy documents and literature. The study also looks at the status of the labor
market institutions that govern employment relations in Tanzania.

The study finds that the government has in place different policies and strategies for
employment generation. Those policies and strategies on the demand side of the labor
markets include the special incentives and support provided to private sectors and the
public employment generation schemes. On the supply side of the labor markets, there
are significant efforts to improve labor productivity in both farm and off-farm activities.
The potential of these interventions to have significant impact on employment has been
constrained by the extensive informal sector in Tanzania, the low demand for labor and
government budget constraints vis-a-vis the sheer scale of unemployment in Tanzania.

The labor market institutions that govern employment relations in Tanzania are
generally weak. The available regulatory instruments and institutions more often serve
the formal and wage employment sector. Although trade unions are generally weak,

62
public enterprise trade unions are relatively stronger than their private counterparts.
Overall, the on-going labor movement has had a tendency to focus on its members in the
formal economy rather than on the most vulnerable people such as those working in the
informal economy, home-workers and migrants.
Employment services in Tanzania are too weak to provide even basic services such as
information to jobseekers and employers. They have not been able to keep up with the
changing requirements of the labor market. Another challenge is that many jobs in
Tanzania are in the informal economy and, by definition the vacancies are not recorded
or registered with the PES.

In addition, employment offices are not equipped to provide jobseekers with reliable and
up-to date information on job opportunities. They lack technical and financial capacity,
and they have insufficient infrastructure and utilities needed to operate the employment
offices. Due to the aforementioned limitations and others, informal mechanisms such as
personal networks have been common ways of recruitment in Tanzania.

There is an increasing realization that the modern/formal sector alone cannot be

expected to absorb into productive employment an increasing proportion of growing
labor force. The informal sector (with their labor intensive technology and their capacity
for labor absorption relative to the formal sector) constitutes a major source of
employment and will continue to play this role. If the informal sector is to constitute a
major shield against unemployment, it is essential that the constraints of the sector be
known and their effects reduced. Introduction of appropriate policies in the informal
sector will enhance its growth. There is also a need to improve labor productivity of the
employees in the sector by aligning formal education programs to the practical skill
needs of the country.

63
6.3 Conclusion
The rationale for employer initiatives to promote youth employability is simple:
businesses that can strategically source, manage, and create needed talent for the long
term will be able to seize emerging economic opportunities, while those that fail to
address this challenge will be outperformed by their competitors. Individuals who are
given access to learning opportunities and who can cultivate the right skills will thrive in
the labor market and contribute to the organizations that employ them.
Employers have a direct interest in making investments that will improve young
people’s ability to succeed in the world of work. These investments can take many
forms, ranging from volunteering in schools by individual executives to engagement of
the firm in training-to-employment or work experience programs.
These may form the common base for youth employment solutions. It is recommended
that these EA countries should develop an integrated national vision, policy and plan of
action for youth employment.

The East African Customs Union has been established as way to form a common
market, subsequently, a monetary union and ultimately a political federation of the East
African states. One of the strategic moves and preparatory activities is the regional
integration of labor market, with the goal of facilitating the free movement of factors of
production, including the youth labor power. This demands the need for national states
to pursue open door labor market and employment policies. It is the mission of these
policies to put an enabling environment for increasing youth employment and social
security in the rural and urban areas.

Among other things, this entails preparation of the youth for work: ensuring quality
basic education for all young men and women, and developing a demand-driven
vocational and technical education system; supplying quality jobs through an enabling
environment for transforming the traditional agricultural and informal sector activities
into formal modern commercial activities; promoting equal youth employment

64
opportunities for men and women and addressing specific needs of vulnerable groups
such as youth with disabilities; fostering entrepreneurship and empowering youth and
facilitating their entry into business; and promoting youth employment strategies that
enhance labor mobility, social security, income and prevent social exclusion.
The top priorities for youth employment strategy focus on what is known as the four Es:
Employability; Equal opportunities for young men and young women; Entrepreneurship;
and Employment creation. The general policy strategy is to design and implement youth
employment action plan to facilitate and support provision of effective, efficient and
transparent service for promotion of youth mobility and employment.

6.4 Recommendations
i) Put employment at the center of all macroeconomic policies. This requires policy
reversal. Integrate incentives for private sector involvement in industrial attachment and
internship, and employment of young people. Policies to focus on value addition in
agriculture (agro processing); resource extraction and use mapping out of youth
employment interventions, collating the information, packaging it appropriately and
disseminating it to the youth.

ii) Introduce dynamic business financing models with no requirement for collaterals.
Countries have youth/women enterprise development funds but affordability,
accessibility and capacity of the youth/women to acquire and utilize the funds is still a
challenge. Need to relook at the role of youth SACCOS in mobilizing savings and
promoting financial intermediation. There is need for practical entrepreneurship courses
and programs, business mentorship and incubation programs.

iii) Identify, nurture and develop talents. .Countries should establish Talent Academies
in existing institutions, especially in schools during school holidays. It may not
necessarily require building new institutions.

65
iv) University/TVET institution-industry linkages to enhance provision and acquisition
of practical skills, job matching and shortening of the job search period. The youth have
shown leadership in the area of ICT. Thus, thinking through promotion of ICT-
driven/digital jobs for the youth would be essential.
v) While commitment for policy implementation and coordination is critical, it would be
important to reconsider the place of government in this area. The key question is, should
government be the one to implement policies or government should be in charge of
coordination, standard setting and quality control.

vi) Youth unemployment will only be effectively addressed if the youth themselves also
undergo through some culture/attitude/perception change from job seeking orientation to
job creating orientation. Equally important is the youth developing a culture of patience
to remain in jobs as they continue to search for better jobs even if the jobs that they are
engaged in do not match their expectations. Some employers are of the view that some
of the youth are not dependable as they have high levels of job mobility, at times leaving
employment without issuing a termination notice.

vii) A policy dialogue platform bringing together the youth, employers and policy
makers would be appropriate in enhancing understanding the dynamics of youth
unemployment from the perspective of the youth, employers and policy makers.

viii) The living standards of the citizens of Eastern Africa countries will only brighten if
productivity and employment conditions within informal sector employment improve.

ix) Policies aimed at enhancing formal employment creation should be coupled by

policies aiming to increase the productivity and improve the labor conditions in the
informal sector.

66
x) Since a large proportion of the labor force, even under the best scenario, will remain
in the informal sector, improving productivity of this sector with a well balanced mix of
economic and social policies will make a remarkable contribution in improving the labor
and living conditions of a large number of the citizens of these countries.
xi) Non-government Organizations have the largest role to play in increasing
employment opportunities among graduates. They should prepare and implement
programmes related to the mission and objectives of the Youth Development Policy and
Vision 2025. The strength of the NGO sector is in its ability to target communities at
the grassroots level. They can increase their scope of influence by making partnerships
with international organisations, governments, the private sector and media.

xii) Private companies also have to create opportunities for youth employment wherever
possible. It is also essential for private companies to work together with the NGO sector
as donors and/or programme development partners to create opportunities for youth to
have access to training and skills that can increase their chances of gaining employment.
The strength of this sector is in skills and knowledge that they have that can assist the
youth in gaining employment. They can utilize this strength by making partnerships
with NGOs to create joint ventures that can lead to job creation.

xiii) Like the private sector, international agencies/donors are in a position to provide the
capital necessary to implement youth employment programmes at the community level.
They need to use this strength to support the work of NGOs and community
organizations.

xiv) Village governments have the role to assist the youth in establishing self-
employment projects. The strength of the government at the local level is in their
potential to provide opportunities for youth to be employed by utilizing the available
resources. It is necessary for them to encourage and enhance the skills of the youth
whenever possible.

67
xv) The youth must play the role of being active participants in their own development.
It is important for the youth to seek knowledge regarding their rights and to seize
opportunities to use their skills and talents to develop themselves economically and thus
recognize that they are responsible for contributing to the development of their nation.
The strength of young people is in their ability to adapt and learn quickly; in their energy
and ability to conceive new and innovative ideas. By becoming active and informed
about their rights they can increase their own opportunities for development.

6.5 Recommendation for Further Studies

I recommend that future research work should focus on challenges the Government of
Tanzania faces from having a large number of youth who are graduates and roaming in
the streets without employment.

68
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 APPENDICES

Dear respondent,
I am a student pursuing Masters Degree in Public administration .The following
questionnaire is part of my requirement for completing a dissertation, and I will
appreciate assistance from you concerning the information needed.
The main underlying objective of my research is to analyze the challenges facing
graduates in searching for employment. My case study is in dar es salaam.
To effectively attain the above objective, I have developed the following questionnaires
which I have divided them into four parties that covers my objective.
I therefore, kindly request your voluntary participation to answering the following
questions.
The questions are divided in three parts: A, B, C and D according to the objective
needed to be achieved.

PART A:
Social and demographic Information:
Name of the respondent (optional) ………………………………………………………
i) Sex
 Male
 Female
(Tick √ the most appropriate box)

ii) Respondent’s age:

 18 - 25
 26 – 35
 36 – 45
 46 - 55
 56 and Above

74
iii) What is your highest level of Education?
 College certificate
 University first degree
 Masters degree
 PHD
 Other (specify) ……………………………………………………………

iv) What is your field of study or area of your expertise?

……………………………………………………………………………………
……………………………………………………………………………………

PART B:
(This part aims at analyzing the magnitude of unemployment problem for graduates and
their perceptions thereto).

i) What best describe your type of unemployment?

 Voluntary (quit job and/or decide not to apply for job)
 Involuntary (unsuccessful applications, laid off, dismissal)
Other (specify)…………………………………………………………………….
………………………..….……………………………………………………….
………………………….….………………………………………………………

Explain briefly how do you think are the reason for your type of unemployment.
……………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………

75
ii) How long have you been unemployed? (Since you graduate from school or since
your last employment)
 Less than six months
 6 – 12 months
 1 – 2 years
 2 – 3 years
 4 years and above

iii) What strategies have you being used in searching for job?
 Send application letters
 Using recruitment agencies
 Both above ways
Others (please explain briefly) ……………………..…………………………..
……………………………………………………………………………………
……………………………………………………………………………………

iv) How often do you participate to development issues affecting the community
around you?
 Very often
 Sometimes
 Very few occasions
 I do not participate at all

v) What do you think is/are the factor(s) causing the level of participation you have
selected above?
……………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………

76
vi) What are the main challenges you are facing from people in your communities in
relation to the fact that you are unemployed?
……………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………

vii) Do you have financial stress as a result of your situation?

 Yes
 No

viii) What alternatives do you think are necessary to take if the situation persists?
……………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………

PART C:

(Please rank the factors in ascending order in according to the level of importance of
the factor against others. 1- very important, 2 – important, 3- Average, and so on)

i) What do you think are the causes of unemployment associated to the employee
him/herself?
Factor Rank
Insufficient Qualifications ……..
High number of graduates in relation to the job creation level ……..
Competition from foreigners ……..
Lack of application and interview skills ……..

77
 Other factors……………………………………………………………………….
..……………………………………………………………………………………
…..…………………………………………………………………………………

ii) What do you think are the factors causing unemployment associated to
Employers?
Factor Rank
Corruption ……..
Low level of job opportunities ……..
Technological replacement ……..
High labour cost ……..

Other factors……………………………………………………………………..
……………………………………………………………………………………
……………………………………………………………………………………

iii) What do you think are the factors causing unemployment associated to the
Government?
Factor Rank
Corruption ……..
Poor employment Policies ……..
Poor leadership commitment ……..
Low level of investment ……..

Other factors…………………………………………………………………….
……………………………………………………………………………………
……………………………………………………………………………………

78
iv) How do you rank employment system’s fairness in public sectors?
 Very fair
 Fair
 Not fair

v) How do you rank employment system’s fairness in private sector?

 Very fair
 Fair
 Not fair

PART D:
i) Evaluate the commitment by Government to deal with the problem of
unemployment.
 Excellent
 Good
 Average
 Poor
 Very Poor

ii) Evaluate the contribution of private Sectors in Tanzania in curbing the

unemployment problem.
 Excellent
 Good
 Average
 Poor
 Very Poor

79
iii) Describe effectiveness of the country’s policies to incorporate solutions for
unemployment problem.
 Excellent
 Good
 Average
 Poor
 Very Poor

iv) What do you thing are the challenges facing the government in its efforts to curb
unemployment problem?
……………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………

v) What may be your suggestions on the solutions to unemployment problem?

……………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………
……………………………………………………………………………………

Thank you very much for your valuable time

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 Interview Guide Questions

1. What do you understand about unemployment, and if you’re not employed, describe
your type of unemployment?

2. What do you think are the reasons for your type of unemployment?

3. How long have you been employed?

4. What strategies have you being used in searching for job

5. Does Government has any efforts on helping youth especial graduates on the issue of
unemployment

6. What are challenges facing graduates who are seeking job?

7. What may be your suggestions on the solutions to employment problem

Thank you very much for your valuable time

81