Zelalem Thesis Approved-22

Unity University
School of Graduate Studies

Department of Management and Marketing
THE DETERMINANTS OF YOUTH UNEMPLOYMENT:

THE CASE OF WOREDA 14 OF BOLE SUB CITY.
A Thesis submitted to the School of Graduate Studies of Unity University in

partial fulfillment of the requirements for the Degree of Master of Science in
Project Management.
Prepared by: Zelalem Kiros Tesfaye

Advisor: Demmelash Habte (PhD)
September 2022
Addis Ababa
UNITY UNIVERSITY
SCHOOL OF GRADUATE STUDIES
THE DETERMINANTS OF YOUTH UNEMPLOYMENT IN CASE OF BOLE SUBCITY

WOREDA 14.
BY
ZELALEM KIROS TESFAYE
Approval of Board of Examiners
External Examiner Internal Examiner
Name: ____________________ Name: ____________________
Signature: ________________ Signature: ________________
Date: ___________________ Date: _____________________
Advisor
Name: ______________________
Signature: ________________
Date: ___________________
Confirmation
Chairperson, Department Graduate Committee
Name_____________________
Signature__________________
Date______________________
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ACKNOWLEDGEMENT
I want to say thank you A special note of appreciation is due to my advisor Demelash Habte
(PhD), whose meticulous attention to detail has motivated me and maintained my work on
schedule. I want to express my gratitude to God and his mother for their guidance and support
throughout my life. In order to make this work a success, I would want to express my sincere
gratitude to everyone who put in time and effort. Mastewal, my wife, for her compassion; my
other family members for their encouragement and support; and my coworkers. Last but not
least, I would like to extend my sincere gratitude to The Bole Sub City Woreda 14 personnel and
Administration manager, who gave me the chance to distribute and gather all staff and outside
questioners in order to gain all available statistics on youth unemployment.
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Table of Contents
ACKNOWLEDGEMENT.................................................................................................................................. I
TABLE OF CONTENTS................................................................................................................................... II
LIST OF TABLES.................................................................................................................................................. IV
LIST OF FIGURES.................................................................................................................................................. V
ACRONYMS....................................................................................................................................................... VI
ABSTRACT:................................................................................................................................................... VII
CHAPTER ONE.................................................................................................................................................. 1
1.1 BACKGROUND OF THE STUDY..................................................................................................................... 1
1.2 STATEMENT OF PROBLEM................................................................................................................................ 3
1.3 RESEARCH QUESTIONS.................................................................................................................................... 6
1.4 Objectives....................................................................................................................................................6
1.4.1 General Objective....................................................................................................................................6
1.4.2 Specific Objective................................................................................................................................7
1.5 SCOPE AND LIMITATION OF THE STUDY....................................................................................................... 7
1.6 SIGNIFICANCE OF THE STUDY................................................................................................................. 7
1.7 ORGANIZATION OF THE RESEARCH........................................................................................................ 8
CHAPTER TWO............................................................................................................................................... 9
LITRATURE REVIEW.................................................................................................................................... 9
2.1 THEORETICAL REVIEW................................................................................................................................. 9
2.1.1 Definitions of Unemployment...................................................................................................................9
2.1.2 Types of Unemployment..........................................................................................................................10
2.1.3 Natural Unemployment.......................................................................................................................10
2.2 MEASUREMENTS OF UNEMPLOYMENT.............................................................................................................. 10
2.2.1 The Unemployment Rate.....................................................................................................................10
2.2.3 Minimum-wage effects on skilled and unskilled labor....................................................................11
2.2.3 Models of Unemployment....................................................................................................................13
2.3 EMPIRICAL LITERATURE................................................................................................................................ 14
2.3.1 Effects of Unemployment.....................................................................................................................14
2.5 CONCEPTUAL FRAME WORK........................................................................................................................... 17
CHAPTER THREE............................................................................................................................................ 19
RESEARCH DESIGN AND METHODOLOGY.................................................................................................... 19
3.1 RESEARCH DESIGN........................................................................................................................................ 19
3.2 SAMPLING DESIGN........................................................................................................................................ 19
3.3.1 Type of universe (Population)............................................................................................................20
3.3.2 Type of Unemployed youth..................................................................................................................20
3.3.3 Study population and Sampling Technique......................................................................................20
3.3.4 Sample Size............................................................................................................................................20
3.3.5 Sample size and Sampling technique.................................................................................................21
3.4 DATA SOURCE AND ACQUIRING TECHNIQUES..................................................................................................... 21
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3.5 DATA ANALYSIS............................................................................................................................................ 22
3.5.1 Descriptive statistics............................................................................................................................22
3.5.2 Inferential statistics.............................................................................................................................22
3.6 RELIABILITY AND VALIDITY........................................................................................................................... 23
3.6.1 Reliability..............................................................................................................................................23
3.6.2 Validity...................................................................................................................................................23
3.7 ETHICAL ISSUES............................................................................................................................................ 24
CHAPTER FOUR.............................................................................................................................................. 25
DATA ANALYSIS AND PRESENTATION......................................................................................................... 25
4.1 GENERAL INFORMATION ABOUT RESPONDENTS................................................................................................ 25
4.2 RELIABILITY TEST........................................................................................................................................ 26
4.2.1 Reliability..............................................................................................................................................26
4.3 DESCRIPTIVE ANALYSIS................................................................................................................................. 27
4.3.1 Analyses of Economic Factors.............................................................................................................27
4.3.2 Analysis of Social Factors....................................................................................................................32
4.4 CORRELATION ANALYSES............................................................................................................................... 36
4.4.1 Relationship between Socio economic factors & Unemployment status dimensions..................37
CHAPTER FIVE................................................................................................................................................ 38
SUMMARY OF THE FINDINGS, CONCLUSION AND RECOMMENDATION.....................................................38
5.1 SUMMARY OF FINDINGS................................................................................................................................. 38
5.2 CONCLUSIONS............................................................................................................................................... 40
5.3 RECOMMENDATIONS...................................................................................................................................... 43
REFERENCES................................................................................................................................................... 44
APPENDICES................................................................................................................................................... 47
LIST OF TABLES
Table 4.1 Educational status of respondents……………………………………………….….25

Table 4.2 Source of Income…………………………………………………….………….….26
Table 4.3 Reliability Analysis: Cronbach’s Alpha Value………………………………….….27
Table 4.4 Economic Factor-Income…………………………………………………………...28
Table 4.5 Economic Factor-Job Opportunity………………………………………………….31
Table 4.6 Economic Factor-Saving/Investment……………………………………………….32
Table 4.7 Social Factor-Health………………………………………………………………...33
Table 4.8 Social Factor-Education…………………………………………………………….34
Table 4.9 Social factors- Skill /Training………………………………………………………35
Table 4.10 Social factor- tradition…………………………………………………….……….36
Table 4.11 Correlation b/n Socio economic Factors &Unemployment status Dimensions……37
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LIST OF FIGURES
Figure 1.1 Minimum Wage segmented Labor Market………………………………….…......13
Figure 2.2 Conceptual framework of determinates of youth unemployment…………........….18
Figure 3.1 Unemployment trend from 2010 -2013E.C……………………………………...…21
Figure 4.1 Skill Mismatch and Information Asymmetry……………………….……………...29
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ACRONYMS
NGO Non-Governmental organization

GDP Gross domestic product
MSE Micro and Small Enterprises
TVET Technical and Vocational Education and Training
CSA Central Statistics Agency
GTP Growth and Transformation Plan
ILO International Labor Organization
CSO Civil Society Organizations
SAS Statistical analysis system
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Abstract:
The aim of the study was to examine the factors which determine youth unemployment in Addis
Ababa Bole Sub City Worda 14 and suggest way forward towards reduction of the problem. The
study uses Correlation measurement to analyze the determinants of unemployment in Bole SC
Woreda 14. The findings of the study show that gender, geographical location, education, skills
and marital status are all significant factors in explaining the difference in youth employment
status. From the findings the study several recommendations are made, first, the government and
policy makers should review job market laws and regulation in order to promote a smooth
transition of youth from education to job market. To make sure that all young people with
education or skills realize their investments in education and contribute to the development of
the country, the government should develop specific interventions, particularly in the creation of
more formal jobs and strengthening job market regulation relating to young people. In order to
give young people with the same level of education or training an equal chance, the study also
suggests that government or private educational institutions should offer soft skill training to
graduates who are unemployed in addition to strengthening the laws and regulations relating to
gender balance in the job market. Therefore, efforts should be made to reduce the number of
young people who are unemployed by increasing employment opportunities for those with
education, facilitating hiring without a need for work experience, lowering rural-urban
migration, matching skills to jobs, creating access to symmetrical job information, and
providing relevant information for job seekers.
Keywords: Determinants, Unemployment, Youth, Bole sub city woreda 14
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CHAPTER ONE
1.1 Background of the study
As Per the World Bank (2015) definition Youth unemployment is a fundamental problem facing
and challenging the social, political and economic activities of all over the countries. Countries,
organizations, nation, NGOs and civic affiliations have different age categorization of youth
based on several factors for example in UKs introduced in 1998 young people age group with
18-24, while in Italy youth people are aged between 14-29 within north and 14-32 inside the
south (O’Higgins, 2001:10). And in the United Nations (UN) 15-24, WHO 10-24, in Ethiopia,
the age of youth 15 -29 years, and other countries has divers’ age limitations (MYSC, 2004).
United Nations defines, those between the ages of 15-24, are more affected by unemployment.
Young people are more vulnerable and lack experience, social networks or other qualifications
that would make them difficult to find employment. In most regions youth were nearly three
times more likely to be unemployed than adults (ILO -Geneva: 2010 Global employment trends
for youth).
As ILO (2001) defined, unemployment is a condition of being without work but actively
seeking available job at the prevailing wage level in the given period of time; while graduate
unemployment is a type of unemployment among people holding academic degrees
(Saptakee, 2001). Many Woreda officials’ researchers and government known those youth has
potential energy, motivations, innovation and talent to succeed economic and social development
throughout the country. But still there is a big gap between number of unemployed youths and
new job opportunities.
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In Africa, the numbers of youth is growing rapidly. In 2010, the 1.2 billion young people in the
world constituted 18 percent of the global population (UN, 2010). By 2015, 226 million youth
aged 15-24 are lived in Africa. As per World Bank report In Ethiopia youth unemployment rate
by 2019 was 3.17%. Thus numbers of youth are increasing rapidly from year to year around the
world. While there is lack of employment opportunities for youths. Youth unemployment is a
pressing issue in Ethiopia where almost two-thirds of the population is younger than 25 years.
Unemployed young people are more likely to abuse illicit substances than employed young
people. As indicated by UN (2003) report, unemployed youth are the fundamental drug users in
Sub Saharan Africa, which accounts 34 million youngsters speaking to 7.7 percent of the
mainland's youth population. Youth unemployment additionally contributes for the universality
of wrong doing and wildness in social orders where business opportunities are constrained.
Okojie (2003) and Haji (2007) found that numerous unemployed youth run criminal endeavors
occupied with brutality, furnished theft, auto grabbing, illicit fuel deals, and unlawful
importation of arms. It total youth unemployment is a negative life occasion that makes
individuals despondent. Consistent to this, Toit (2003) also found that experiencing depression is
the consequence of unemployment. Moreover, Berhanu et al (2005) stated unemployment results
social exclusion and a sense of hopelessness on youth.
In Ethiopia, Micro and Small Enterprise is one of the institutions given recognition in the
country’s industry development policy. It also serves as vehicles for employment opportunities at
urban centers fostering the economic development. MSE serves as sources for sustainable job
opportunities not only for developing countries like ours, but also for developed countries like
USA. Thus, they should be given prior attention as they are important and serve for sustainable
source of job opportunities and economic development in the country.
Addis Abebe, capital and largest city of Ethiopia. It is located on a well-watered plateau
surrounded by hills and mountains in the geographic center of the country. Several international
organizations have their headquarters in the city, notably the African Union and the United
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Nations Economic Commission for Africa, the latter of which is located in Africa Hall. Addis
Ababa has 11 subcities, the Bole sub- city is one of the largest sub- city located in the eastern
part of Addis Ababa. The sub city has 14 Woreda (districts) and covers an area of 122.8 km².
The focus of this study determining the major factors of youth unemployment with in this sub
city of Woreda 14.
As per Central Statistics Agency-CSA survey undertaken on the topic of "KEY FINDINGS ON
THE JANUARY 2020 URBAN EMPLOYMENT UNEMPLOYMENT SURVEY," the total
amount of unemployment in Addis Ababa are 398,346 out of which the total number of males
are 161,818 which is 41% of it, and Female youth unemployed are 236,528 which is 59% of the
total. More specifically, according to Bole Sub City Woreda 14 data bases from 2011EC to
2013EC data, there are 4899 registered young unemployed out of whom 2663 men, or 54% of
the total, and 2236 women, or 46% of the total, are male. This indicates that a higher percentage
of young men than women are unemployed.
Many young people who are unemployed give up fighting long periods of unemployment that
don't affect their ability to find work. As a result, it is crucial to address various difficulties while
anticipating changes in the future. Finding the "Determinants of Youth Unemployment in Addis
Ababa, Bole Sub City Woreda 14" is the main goal of this thesis study. The study's findings are
significant for employers and other labor market participants because they help them understand
the issues that contribute to young unemployment, which represents a sizable portion of the labor
force in bole sub city woreda 14. On the other hand, the study gives information to the youth
themselves so they may comprehend the reasons behind unemployment and potential solutions.
The study also contributes to the body of literature by filling in information gaps regarding the
causes of youth unemployment and potential solutions for the issue in the nation.
1.2 Statement of Problem

Unemployment is a serious socioeconomic problem that affects all age groups in both
developing and developed countries, but it is most prevalent in developing countries with a high
youth population density. Adults have more opportunities than youths, implying that youth
unemployment is higher than adult unemployment. According to (ILO, 2004), youth in
developing countries are 4.1 times more likely than adults to be unemployed (Schiefebei and
Farrel, 1982). According to the International Labour Organization (ILO), Sub-Saharan Africa has
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a higher rate of youth unemployment (18.4 percent) than the Middle East and North Africa (21.3
percent). The urban labor market situation in developing countries varies according to sector,
worker characteristics, and employer type. According to a study conducted by (Fayomid, 1992),
urban unemployment is more severe than rural unemployment.
Youth unemployment is one of the most serious socio-economic issues confronting most
developing and some developed countries, causing social unrest, political instability, and
economic recession. Thus, youth unemployment has been identified as one of the most difficult
economic issues confronting developing-country policymakers. If this trend continues, youth
unemployment will have a significant impact on human capital, as well as the region's economic
potential (Berhanu et.al, 2005). The ability of youth to engage in productive activities has both
social and economic consequences for an economy. However, the intensity of youth
unemployment is quite prevalent and widespread in developing countries. ILO (2010) indicates
that 13 youths out of 100 youth were unemployed globally. The situation is not different for
youth of Ethiopia who make up approximately 28.3% of the total population. As a result, the
problem of youth unemployment is a central issue of public discourse in Ethiopia. In another
way, youth unemployment may play a significant role in causing political instability as a result
of economic crises. The youth employment situation in Ethiopia is grave and shocking, not only
for the country but also for the youth (Guracello and Rosati, 2007). Females have a higher
unemployment rate than males.
Most studies conducted so far on youth unemployment were much more focused on
macroanalyses that generated incidences, durations, and trends of unemployment and tested
other related variables quantitatively. So far, there have been few studies that attempt to examine
how young people negotiate unemployment and what it means to be unemployed. Studies reveal
that in developing countries, due to limited opportunities, the youth life phase for some young
people is prolonged (Mains 2012).
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Youth unemployment covers fundamental variations in a diverse group of young people, such as
youths living in town, young females, and young people with low educational completion. A
high level of youth unemployment is one of the critical development problems facing Ethiopia.
In line with this, Berhanu et al. (2005) stated that the youth unemployment rate is consistently
higher than any other age group of the population in the country.
Logically, a high level of unemployment indicates the failure of a country's economy to use its
labor resources effectively. In general, there are various factors explaining unemployment, such
as a low level of general economic activity, recession, inflation, rapid changes in technology,
disability, willingness to work, and discrimination. In the case of Woreda 14, several factors
contribute to the causes of youth unemployment. According to Mryyan (2014), at least three
structural problems explain the persistence of high youth unemployment. First, the mismatch
between education outputs and the labor market's skills causes high unemployment among
university graduates. In contrast, labor market participation among high-skilled youth is
particularly low; young graduates are likely to face average labor market Determinants of Youth
Unemployment. Second, the inability of both the private and public sectors to absorb new market
labor entrants. Third, a lack of access to and quality national programs enables a smooth school-
to-work transition, including vocational training and career guidance.
This is mainly due to the unbalanced relationship between the rate of economic development and
the rapid population growth, and urbanization also plays a big role in aggravating the youth
unemployment problem. Beside that, in Ethiopia, relatively well educated and fresh job seekers
are largely affected by the prevalence of unemployment, with unemployment duration close to
four years and even more years for those seeking a white collar job (Mains 2007, Serneels 2007).
As it is known that Ethiopia is one of the least urbanized African countries, youth employment
opportunities in both the formal and informal sectors are concentrated in major urban areas.
After some level of schooling in Ethiopia, it is common for young people to move to urban areas
to search for jobs. This makes youth unemployment in Ethiopia an urban spectacle. Being the
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primate city located in the heart of the country where major cultural, economic, and political
institutions are situated, Addis Ababa attracts more labor forces from every corner of the
country, which raises competition for the limited available jobs.
Thus, the purpose of this research is to identify determinants of youth unemployment, and to
change the level of factors that cause unemployment in Addis Ababa, Bole Sub City Woreda 14.
This research found that the problem of unemployment highly affects the population of Addis
Ababa, Ethiopia. Currently, 20.1 percent of the unemployment rate is estimated in Addis Ababa
city. As of the city subcity4 data a data, number of registered unemployed youth are 4899, out of
which 54% are male and the rest 46% are female youth unemployed. The declining of youth
unemployment was attributed to the adoption of youth policy in 2004 and the efforts made by the
government in making the young people actively participate in the development activities of the
country. The factual evidence indicated that youth unemployment in urban areas like Addis
Ababa is a serious problem. It reflects that efforts have been made to address the problem, in
which a 10 percent decline was observed in the last eleven years. The results of the study are
important to the employers and other labor market players, for understanding the source of
problems resulting in unemployment of youth which account for a large share of the bole sub
city woreda 14 labor force.
However, the issue requires further intervention from the concerned body in order to benefit
from the human resources, individually and nationally. Otherwise, the social and economic costs
would affect individuals and societies in particular, and the country in general the study also adds
to the literature by filling the knowledge gaps on the roots of youth unemployment and how the
problem can possibly be addressed in the country.
1.3 Research Questions

 What are the most influential factors for youth unemployment?
 How do you evaluate the measures to change level of factors that causes
unemployment in Addis Ababa, Bole sub–City Woreda 14?
 How to assess the extent of youth unemployment in this study area?
 What are the influential determinants to identify youth unemployment?
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1.4 Objectives
1.4.1 General Objective
The main objective of the study is to identify the determinants of youth unemployment in Bole
sub city Woreda 14.
1.4.2 Specific Objective

The specific objectives are:
 To assess the extent of youth unemployment in this study area.

 To identify the most influential determinants of youth unemployment.
 To evaluate the measure to change the level of factors that causes unemployment in
Addis Ababa, Bole sub–City Woreda 14.
 To assess the prospect of being unemployed among youth’s potential.
1.5 Scope and limitation of the Study
The study will be limited to, Bole sub city Woreda 14 because of the existence of alarming rates
of youth unemployment. There are only few projects that will create jobs for the increasing youth
population in the a Woreda.
This study is also specific to the determinants of youth unemployment in bole sub city Woreda
14. This research study was also lack of time and had scarce of financial resources to carry out a
more thorough investigation. Because of geographical limitation, this study only considers bole
sub city Woreda 14 youth unemployment. Further, the job creation and policy contribution
factors are measured against number of actively employed youth only.
As the research is specific to youth unemployed of bole sub city Woreda 14 is geographically
confined to the capital city (Addis Ababa), it might affect the generalizability of the research
output. As the sampling technique of the study used to select sample Woreda’ and respondents
is limited to convenience, this could affect the reliability of the study. It would have been better
and more effective if samples were selected randomly which creates equal chance to be included
in the sample. In addition, shortage of related research works on the topic was another
impediment of this study.
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1.6 Significance of the study
It is significant because it will add to already existing body of knowledge of youth

unemployment. It is significant because it will look into the cause and effect of youth
unemployment in bole sub city Woreda 14 providing visible solutions to unemployment in that
area. It will bring to light various factors contributing to unemployment thus providing probable
instrument to policy makers. It will classify, locate and verity variables while are expected to
form pre-conditions of unemployment making problem solving possible.
Analyzing the impacts of youth unemployment is crucial for curbing it in Bole sub city Woreda
14 where there is a very small number of the population participating in the labor market and
particularly Bole sub city where there is a growing concern of increased number of young job
seekers. This research study will contribute to the understanding of unemployment from
academic perspective particularly the effects of youth unemployment it will helps the officials in
the quest for desirable youth targeting states as unemployment is concern. Last but not least, this
study might contribute to the future potential researchers who are interested to undertake their
research on the issue in the case of Addis Ababa city bole sub city.
1.7 Organization of the research
This study is organized under five chapters. Chapter one deals with Introduction which contains
background of the study, statement of the problem, objective of the study, delimitation and
limitation of the study. Chapter two reviews important concepts of the subject matter. Chapter
three discusses the methodology of the research which includes research and sampling design,
data source, data acquiring and analyses techniques etc. Chapter four deals with data analyses
and interpretation and chapter five contain conclusion and recommendation.
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CHAPTER TWO
LITRATURE REVIEW
2.1 Theoretical Review

2.1.1 Definitions of Unemployment
Unemployment occurs when people are without work and actively seeking work. The
'unemployed' are those actively looking for job, but cannot find the work according to
international labor organization (ILO). The 'inactive' are those without work and are not
interesting in seeking job. This inactive youth may include those who are in school.
In United States of America (USA), unemployment can be referred to as the unemployment rate
which is defined as the total number of the unemployed divided by the total labor force; this
consists of both the employed and unemployed persons. ''Youth'' are young people ages from 15
years to 24 years; (United Nations, UN), however, in practice there is no universal definition of
youth. It varies from one country to another based on cultural, social, institutional, and political
factors (United Nations, 1992).
In Africa there is no definite definition of youth, for instance, in Ethiopia a person age between
15 and 29 years is considered to be a youth, in Uganda a person age 12 to 30 years is said to be a
youth, in south Africa a person between the age of 14 to 28 years is considered to be youth,
(Ethiopia national youth policy, 2004). 9 the concept of youth is defined differently by different
institutions. Among these are; government, United Nations (UN), the Civil Society
Organizations (CSOs), (Boboya James Edmond, 2015).
According to the United Nations, youthful age range from 15 to 24 years, (UNPY, 2002). The
United Nations convention on the right of child considers any person below the age of 18 years
as a child. The definition of youth as any person age15 to 30 years. This definition will be
employed for the purpose of this study as the rate of unemployment affects such age category.
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2.1.2 Types of Unemployment
2.1.2.1 Cyclical Unemployment

This is refer to the difference between the rate of real unemployment and the natural
unemployment rate. According to john Keynes Maynard cyclical unemployment is a huge
aggregate excess supply of labor.
2.1.2.2 Frictional Unemployment

This is caused by natural frictions of labor market matching processes. Here the frictionally
unemployed search for job from whose suitable vacancies exist, but cannot find these firms. 10
2.1.2.3 Structural Unemployment

This occurs as a result unmatched skills possessed by the unemployed and other characteristics
that do not meet the requirements of the Technological changes in available job vacancies and
economy's structural changes usually as a result of changes in the skills composition as required
in the labor market. When the job seekers do not adjust to these changes, then the structural
unemployment will result, (Jeffrey parker, 2010).
2.1.3 Natural Unemployment

According to Milton Friedman in an address to the American economic association (Friedman,
1967) ''natural rate of unemployment'' refers to the rate resulting from the equilibrium operation
of micro economy when macro-economic conditions cause neither excess demand nor excess
supply of labor.
2.2 Measurements of Unemployment

2.2.1 The Unemployment Rate
Unemployment rate measures the percentage of work force that is considered to be out of work,
but searching for job (bankrate.com).
It indicates the state of the labor market and household's financial status. Rising unemployment
leads to reduced spending on consumption and bankruptcy, delinquency. It indicates a
competitive labor market, in which employers have hard time in finding workers to fill in the
available job vacancies. This will force the employers to pay high wages so as to attract more
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workers. (bankrate.com). As it measured the percentage of work force, some individuals are not
considered as unemployed since they might be frustrated with looking for work and give up on
trying to search for job. These discourage workers will take jobs if it came along their way which
mean that official unemployment underestimates the real unemployment. This leads to
counterintuitive in which the number of the employed and unemployed will move in the same
direction instead of opposite directions. it also underestimates the rate of unemployment because
it does not consider the rate of the underemployed workers, for instance part-time workers who
may be willing to work full time and those in employment below their qualification or low pay
than those possessing the same skills with them. It does not show the length of unemployment
for individuals as duration of unemployment is an important measure for unemployment rate.
(Jodi, 2016).11
2.2.2 Labor Force Participation Rate

It is the percentage of the working age persons who are unemployed and actively looking for
work and also the employed in the economy. The working age is from 16-64 years those
considered not to be participating in the labor force are homemakers, non-civilians and the
retirees and under 64 years on institutionalized people. (Mike, 2016). Since the output level per
worker is the major determinant of the standards of living in the economy. It is important to
know how much of the total population wants to work instead of only those who want to work
are actually working. (Mike, 2016).
2.2.3 Minimum-wage effects on skilled and unskilled labor

As per Jeffrey Parker, Economics 314 Coursebook, 2014 explanation A two-sector labor market
is shown in Figure 1. The left panel shows the equilibrium of the market for skilled labor. In this
market, the equilibrium wage exceeds the minimum wage, so there is no direct effect of the
minimum-wage law on unskilled labor. The right panel shows the unskilled labor market in
which the equilibrium wage is lower than the legal minimum. The wage floor is effective in the
unskilled market, preventing demand from coming into equality with supply. As in our initial
analysis of Figure 1, employment is reduced and an unemployment gap exists.
This would be the end of the story if there were no connections between the markets for skilled
and unskilled labor. However, there may be spillovers on either the demand side or the supply
side (or both). On the supply side, there would be no immediate spillover of workers from one
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market to the other. Unskilled workers cannot, presumably, become skilled immediately, while
skilled workers earn a higher wage in the skilled market and have no incentive to move.
In the longer run, supply flows in either direction are possible. Those who cannot find work in
the unskilled sector due to the excess supply situation may choose to acquire skills and
eventually move to the skilled sector. This would increase the supply of skilled workers and
drive their wage down. However, the gap between skilled and unskilled wages has been reduced
(for those unskilled who have work), so there may be less incentive for workers to acquire skills
if they believe that they will be successful in getting an unskilled job at the higher minimum
wage.
This spillover would tend to offset the previous one, leaving the net effect on supply uncertain.
On the demand side, firms’ demand for skilled workers may be affected by the increase in the
wage for unskilled labor. If skilled and unskilled workers are substitutes, the firm will increase
its demand for skilled workers, which will tend to push skilled wages upward. If they are
complements, this will reduce skilled-labor demand and lower skilled wages. Although the
substitute-complement relationship between skilled and unskilled labor is likely to vary across
industries, the most common assumption is that they tend to be substitutes. If that assumption is
true, then an increase in the minimum wage will raise the wages of skilled workers. This
hypothesis is supported strongly by the intense political support for minimum-wage legislation
by labor unions. Most members of labor unions already earn more than the minimum wage, so
they have no direct interest in a higher minimum wage.
To summarize, effective minimum-wage laws appear to benefit the fraction of unskilled workers
that are able to find jobs. They reduce the welfare of those unskilled workers who cannot find
employment. Skilled labor seems to gain from higher minimum wages as substitution by firms
pushes the entire wage structure upward.
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Fig 2.1 Minimum Wage in Segemented Labor Market
Source: Own Construct based on the data Bole sub city Woreda 14 MIS record
2.2.3 Models of Unemployment

2.2.3.1 The Minimum Wage Models
The model is used in the analysis of price floor. Labor is said to be homogenous. Individual
workers participate in particular labor market and are paid equal wage. Assume a Walrasian
market, thus the wage will be w*. If the minimum wage is imposed above the equilibrium wage
at w1, then the market will be at disequilibrium. Only L workers will be employed at w1 and L''-
L ' workers will be unemployed. Deere, Murphy, and Welch (1995). Gilroy Brown and Kohnen
(1982) and Brown (1988), Neumark and watcher (1995) Card and Krueger (1995). 12
2.2.3.2 The Lake Model of Unemployment and Employment

This model is the basic analytical tool for analyzing the flows between unemployment and
employment and how it influences the steady state unemployment and employment rates. The
model make it easy to interpret monthly labor reports, net jobs created and jobs destroyed. The ''
lakes'' in the model are the pools of the unemployed and the employed persons. The '' flows'' in
the model are caused by hiring and firing, entry and exit from the labor market.
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2.2.3.3 The Job Search Model
This determines the average time unemployed job-seeker takes to get new job. If the job seeker
finds and accept new job quickly, then the unemployment rate is lower. Search for Job is
modeled by analyzing both the marginal benefits and the marginal costs. If the marginal benefits
of search are higher than the marginal costs, then the search will be foregone. The wage income
that an individual has foregone for not accepting the offer is said to be the cost of search. The
lengthy the search period, the better offers one accumulates, so the marginal cost of continue
searches is likely higher.
The benefits of continued search are that a better employment would be got. The marginal
benefit declines as search is continued, since the incremental increase in job quality becomes
smaller as more jobs have been checked. The decline in the marginal benefit's curve below
shows the decrease in the marginal benefit of the search and the increasing marginal cost shows
the increasing cost of the job search. The length of the job search is measured on the duration
D*. Change in marginal benefit or marginal cost affects the equilibrium unemployment.
2.3 Empirical Literature
2.3.1 Effects of Unemployment

Lorenzini and Giugui (2010) pointed out that youth unemployment leads to social isolation and
decreased social contacts and collective participation of individuals as they became
psychological depressed and feels lonely. It usually affects both the mental and psychological
health of individuals and the person becomes pessimistic that either the person can attempt
suicide or involve themselves in activities that negatively affect their lives. Because of these,
individual's self-esteem is affected negatively and feeling that they became burden to their family
and society. Social isolation make young people consider themselves as useless, termed as
unable to do anything useful to the family and the society. Gul et al., (2012) argued that the
social and private costs of unemployment are ''rigorous financial distress, homelessness and debt,
poverty, family tensions, and breaks down of family relationship, housing stress, stigma and
alienation shame. Increased crime, erosion of self- esteem, social isolation and confidence.
Another argument is that these effects increase with expanded period of unemployment. Morin
and Kochhar, (2010), pointed out that unemployment often breaks family ties and friends
especially at time the unemployed person wants some support from family and friends.
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According to Morin and Kochhar those who stay for long without job are significantly more
cynical about their chances of getting a job as good as they lost than the short-term unemployed
people. Nadia Llyas, (2015), argued that unemployment affects not only an individual's life. It
has serious negative consequence on the entire economy as a whole.
Society can become a prey to unemployment as it posed numerous challenges to the people of
specific society. By becoming unemployed in the future, the impact is it lowered a young
person's wellbeing, injured self-esteem and foster feelings of helplessness among young people.
Reynolds, (2012), noted that unemployment leads to scarring effects, the combination of poverty
and unemployment can permanently increase psychological distress, similarly at global levels,
and unemployment is a manifestation of structural challenges.
As noted from numerous studies conducted by Andrew S. (2000) in the United States of America
(USA) and Kevin O'. (2003) for the world bank as it is cited by the youth unemployment 17
challenge and solution (2011) it is said that youth who find it difficult to integrate into the labor
market at earlier entrant face scarring effects that diminished their ability and resiliency to thrive
in a demanding and dynamic labor market. Sarah Ayres (2013), in the research paper titled ''the
high costs of youth unemployment'' indicated that youth unemployment have huge negative costs
and long term effects for both individual youth and the whole country's economy.
According to her, being unemployed for long at youthful age leads to lack of skills and
experience acquisition during this time which leads to reduced future earnings for an individual
over the entire career. Because of this reduced future earnings an individual suffers from low
purchasing power during their entire lives. This also has a serious negative consequence on the
country's economy and aggravates youth unemployment and often adds on to the reduced
economic growth of a country (Ayres, 2013). East African Community u.d, (EAC) in its report
titled 'youth unemployment head on'' stressed that unemployment brings violence and crime
among the youth, commercial sex work and as a result leads to spreads of HIV/AIDS, civil
disorder and drug abuse are direct consequence of youth unemployment in sub-Saharan Africa.
These illicit activities and failure of employment bring huge economic and social costs such as
increased level of insecurity and increased costs for security, loss foreign direct investments
(FDIs), waste of productive human resource and increased costs of health services.
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Mitchell (2012) argued that youth unemployment enforces substantial, social, individual and
economic effects such as '' social exclusion, loss of skills, loss of current output, psychological
problems which resulted into increased rates of suicide, reduction in life expectancy, loss
motivation, undermining family life and relationship, gender and racial inequality and loss of
responsibility', social values and ill health. Jacob, (2011) sustained that unemployment for
children, young, unmarried mothers are Crucial, as they might grow up in an environment within
poverty cycle, especially when this young mother have no marketable skills or have no financial
help from the child's father. Another consequence of youth unemployment is on political
stability.
As argued by Azeng and Yogo in their quantitative research, they concluded that high rate of
young people unemployment has significant negative impact on the political stability of the
country especially in low developing countries (LDCs). (Azeng and Yogo, 2013, P.19) Vena
Nedeljkovic (2014) argued that the social and economic costs of unemployment among the youth
in Europe must be understood carefully as it has numerous negative impacts not on future
prospect for employability of youth only, but also on individual youth self-esteem, their role in
society and represent a serious economic burden on state finances. Being young and unemployed
can leads to increased risk of social exclusion, deskilling and poverty, loss of motivation and ill
health. Unemployed youth are extremely prone to worst future career opportunities.
Poverty risk and lower wages Unemployment among the youth leads to reduction in their levels
of happiness and mental depression. Being employed is crucial for young people as they feel
much accepted in the community. Therefore, be unemployed can cause socio-economic, political
and cultural isolation. Stress and unemployment worries cause individual ill health such as
mental depression, increased consumption of drugs and alcoholic addiction as well as increased
levels of crime among the youth (Nedejkovic, 2014).
High unemployment rate among the youth has negative consequence on productivity and
economic growth. Skilled human resource and talent risk being wasted since a huge number of
young graduates were unable to find jobs in order to put their capabilities and knowledge into
production, innovation and contributing to economic growth, moreover, having a large share of
young people out of work not only leads to reduction in productivity and gross domestic product
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(GDP). But it also leads to increased economic costs of the country's economy. Since much
money is paid as social benefits and less money is raised from the taxes (Nedejkovic, 2014).
This can leads to increased family tension and mental and financial crisis within the family.
Unemployment can cause young girls and women to drop out of school at earlier age in order to
serve their families in a bid to earn some income. Unemployment may leads to high crime rates,
depression and substances abuse by youth.
2.5 Conceptual Frame Work

The following conceptual frame work is extracted from the above reviewed literature. From the
above concept, the dependent variable (youth unemployment) is an output of demographic &
socio economic factors, and implementation of appropriate policy intervention.
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Fig.2.2 Conceptual framework of determinates of youth unemployment
Source: Own construction based on the model developed by Nganwa, et al, (2013)
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CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.1 Research Design

Research design is described as a plan for a study that provides the overarching framework for
data collection by Leedy (1997:195). According to MacMillan and Schumacher (2001:166), it is
a strategy for choosing participants, research locations, and data collection techniques to address
the research topic (s). They also suggest that the objective of a decent study design is to provide
results that are regarded as credible. The research design that should be used relies on the study's
purpose, claims Kothari (2004). The author has divided the research design approaches into three
major groups. The first is called exploratory and is utilized in cases where exploratory research
investigations are being conducted, the main goal of which is to formulate a problem for a more
focused inquiry. The second type of study design is experimental, and it is employed in studies
that test the hypotheses positing a causal relationship between variables. The third one, known as
a descriptive one, is used to describe the features of a specific person or group of people in
descriptive research studies. Accordingly, the study's research design is descriptive because it
focuses on narrating facts and characteristics pertaining to the group of youth unemployment.
3.2 Sampling Design

A clear strategy for selecting a sample from a certain population is known as sample design. The
method or process the researcher would use to choose the items for the sample, as well as the
number of items to be included in the sample, are referred to by this phrase. The sample design
takes into account the kind of universe or quantity of populations, the sampling unit, sampling
frame, and sample size.
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3.3.1 Type of universe (Population)
3.3.3.1 Employee and Unemployed
A population that included both employee and unemployed young people could have improved
representation. The study, however, solely focuses on Unemployed individuals due to limited
resources, geographical location and ease of management and administration.
3.3.2 Type of Unemployed youth

The majority of young people without jobs need to find employment, and there are a few job
listings and opportunities in a few nearby cities for people with various educational backgrounds.
So, it makes sense to concentrate on job seekers. As a result, there are 4899 registered job
seekers, both educated and untrained, in the Bole sub city woreda 14 where the survey was
conducted (extracted from MIS process records of the Bole sub city woreda 14, on September,
2022). The majority of those who have registered as job seekers are educated but lack sufficient
work experience.
3.3.3 Study population and Sampling Technique

Youth residing in Bole sub city woreda 14 who are unemployed and educated or not make up the
study's population. When people lack a job and actively seek one, they are said to be unemployed
(or jobless) (ILO,1982). Therefore, the sample and the units of analysis are chosen depending on
the nation youth age group used in this article. This indicates that respondents are those
individuals living in the research area, between the ages of 15 and 29, who are unemployed and
eligible for employment.
3.3.4 Sample Size

The study used a straightforward random sampling method. To select a sample in simple random
sampling, random integers must be used. More particular, it needs a database or list of every
person in the population as its sample frame at first. Using Excel or another SW, produce a
number at random for each element, and then collect the first n samples that were needed. 4
unemployed young people of both sexes were thus chosen and interviewed with the aid of key
informants. As of August 30,2013, E.C, the total number of registered youth unemployed of the
Bole sub city woreda 14 was 4988.
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3.3.5 Sample size and Sampling technique
The sample size is determined based on a format extracted from bole sub city woreda 14 data
base (August 30, 2013 E.C). The recommended sample size for a population size above 1125 at
95% confidence level and a margin of error (degree of accuracy) of 5% is 287. Since the total
number of registered youth unemployment is more than 1125, the sample size is 287.
Fig 3.1 Unemployment trend from 2010 -2013E.C
Male Female Total

Qty 2,663 2,236 4,899
Percent 54% 46% 100%
6,000 Table 3. Unemployment trend from

5,000
2010-2013 E.C
4,899
4,000
3,000
2,663
2,000 2,236
1,000
-
Male 54% Female46% Total 100%
Source: Bole sub

city Woreda 14 MIS record
3.4 Data source and acquiring techniques

The study used primary, secondary, and tertiary data sources. Secondary data were gathered from
books, journals, and research papers. The Woreda youth unemployment registration data base's
reports and pertinent documents were used to gather secondary data. On the other hand, physical
interviews and questionnaires were used to gather the primary data. The questionnaire's
constructs were tested in a pilot study by being given to 15 unemployed youth and Bole sub city
woreda 14 employees, ensuring that they could all grasp them. The constructions were modified
in response to the feedback. Finally, throughout the time of data collection, the questionnaires
were widely dispersed.
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There are three sections to the survey questionnaire. The respondents' gender, age, education
level, source of income, marital status, location, and occupation are all included in the first
section's description of their demographic profile. Constructs relating to causes that contribute to
unemployment are found in the second section, while constructs relating to the social and
demographic effects of unemployment are found in the third section. A five-point Likert scale
with a strongly disagree to strongly agree range was used to construct it. Five points were given
for strongly agreeing, four for agreeing, three for neutrality, two for disagreeing, and one for
strongly disagreeing.
The unemployment factors are own constructs that contain five questions and also the
Unemployment's social and demographic impact related questions are adopted from Tashi
Yangchen, with little modification in order to best suit the specific service of the study. Further,
some of them are developed by the researcher. based on the definition of Amanuel Disassa
Abshoko. (2016)
3.5 Data Analysis

The researcher used Statistical Package for Social Science (SPSS) Version 2022 to analyze the
data. This software has been widely used by researchers as a data analysis technique. Both
descriptive as well as inferential statistics are used to analyze the data.
3.5.1 Descriptive statistics

Descriptive statistics were used to analyze the respondents' demographic profiles, the
effectiveness of the factors that contribute to unemployment (such as a lack of job information
and skill mismatch), the social and demographic factors that contribute to unemployment (such
as economic migration, hopelessness, and a lack of job opportunities), and the respondents' level
of worklessness, information asymmetry, unemployed depression, and mental health issues. The
corresponding frequency and mean value are tabulated and summarized. Following a brief
analysis and interpretation of the tables, a discussion follows.
3.5.2 Inferential statistics

In this study, Pearson correlation coefficient is used to measure the strength of the association
between the Unemployment factors and the Unemployment social & demographic impact which
is correlation coefficient used to measure the linear association between two scale variables.
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3.6 Reliability and Validity
3.6.1 Reliability
Reliability, according to Bhattacherjee (2012), is the degree to which a construct's measure is
dependent or consistent. Reliability is concerned with the consistency or stability of the score
received from a measure or assessment technique through time and under various conditions
(Anastssi & Urbina, 1997; white & saltz, 1957). The reliability of each concept in this study was
assessed using the Cronbach's alpha scale.
3.6.2 Validity
Validity has been defined and explained by many academics in a variety of ways. According to
Bhattacherjee (2012), the validity of a measure is the degree to which it accurately represents the
underlying construct that it is intended to measure. Both theoretical and empirical methods can
be used to evaluate validity. Theoretical evaluation of validity is concerned with how well a
theoretical construct's concept is translated into or reflected in an operational measure. An
empirical validity assessment looks at how well a specific measure correlates with one or more
external criteria using empirical observations.
According to the most popular definition, reliability measures the extent to which an experiment
or any other process that involves measuring procedures will yield the same results if repeated
trials are carried out (Ferrell, n.d., para. 2). In other words, a reliable test or experiment is the one
that provides consistent results every time that it is conducted, with only minor deviations
acceptable. The validity of a test is an entirely different concept that concerns not only the results
of the study but the overall design and performance.
The three most popular ways to prove validity are called content related, criteria related, and
construct related validity (Campbell, 1960). When a measurement approach or instrument is
relevant to the construct being measured, it is said to have content-related validity (Fitzpatrick,
1983). The process for figuring out content validity begins with the operationalization of the
target notion. Other measurement techniques that are used into research design and methodology
can also be related to content validity. The use of already-existing, readily-available tools is
prevalent in much research.
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3.7 Ethical Issues
The bole sub city woreda 14 has been informed of the study's goals and objectives through
introductory letters, and the researcher has made sure that permission was obtained. On the
questionnaire, the respondents were given a detailed explanation of the study's goals and
objectives. Informing respondents not to write their names on the questionnaire served as another
confirmation of information confidentiality.
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CHAPTER FOUR
DATA ANALYSIS AND PRESENTATION
4.1 General Information about Respondents

From the 384 questionnaires distributed to the youth employed & unemployed, 248 were
returned. This resulted in 65% response rate. Out of the total questionnaires returned, 22 were
incomplete so they were eliminated from the data. Hence, the completed and usable
questionnaires were 287 or 75% of the questionnaires distributed. This suggests that the response
rate was high. The basic information provided by the respondents—including gender, age,
education level, occupation, income and number of years without a job—was the subject of the
study that followed. Statistical information is included in the appendix column (Appendix 2.1).
Source: IBM SPSS V22 Output 2022
According to the collected information, men made up 69.4% of the respondents. 48.8%, 32.7%,
and 18.5% of the sample respondents fall into the 15–29, 30–60, and above 60 age groups,
respectively, according to the age category. This suggests that the majority of those seeking job
and those in the woreda 14 are young and middle-aged, which presents woreda 14 with a strong
opportunity given that these age groups are thought to be the most productive. 16.9%, 19.8%,
50.8%, 6%, and 1.6% of respondents said that they had a certificate, diploma, degree, master's
25 | P a g e
degree, or Ph.D., respectively, based on their educational level. Less than high school is only
attended by 4.8% of respondents. As a result, it may be inferred that the majority of respondents
have solid educational backgrounds and have likely had exposure to a range of employment
opportunities.
Source IBM SPSS V22 Output 2022
Another significant element that affects how much respondents make is occupation. As per the
above data analysis, the percentages of employees working for the government, private
companies, self-employed and the jobless are respectively 29.8%, 19.0%, 7.7%, and 43.5%. This
suggests that while the majority of respondents (56.5%) have their own money, which is
positive, many respondents are still young people who are unemployed (43.5%), thus it will take
a lot of work to provide job opportunities for the youth in the woreda.
4.2 Reliability Test

According to Hatcher (1994) cited by Ma and Liu, Cronbach’s alpha is an index of reliability
associated with the variation accounted for by the true score of the underlying constructs which
is the hypothetical variable that is being measured. Thus, Cronbach’s alpha is calculated to
examine the consistency of the constructs and the statistics results are presented in Table 4.1
4.2.1 Reliability
The study's constructs' internal consistency is gauged by their reliability. If a construct has an
alpha value better than 0.70, it is considered dependable (Hair et al., 2013). Cronbach's Alpha
was used to evaluate the construct's reliability. The four-item scale measuring economic
26 | P a g e
elements (Alpha=.835) and the four-item scale measuring social aspects (Alpha=.806) were
found to be reliable, according to the results. Similarly, the youth unemployment rate was
determined to be trustworthy (Alpha=.802). The table below shows that the Cronbach's alpha for
each construct under investigation is higher than the minimum acceptable level of 0.70. This
demonstrates the accuracy of the measurements that were taken. Table 4.3 provides a summary
of the reliability findings.
Table 4.3 Reliability Analysis: Cronbach’s Alpha Value
Constructs No. of Items Cronbach’s Alpha
Economic Factors 4 .835
Social Factors 4 .806
Unemployment youth status 2 .802
Total 10
4.3 Descriptive Analysis

The levels of young unemployment for the two economic and social components are described
by the mean value in this section of the analysis. It is evaluated using a five point Likert scale,
with 1 representing strong disagreement and 5 representing strong agreement. The neutral value
is assigned the value of 3.
4.3.1 Analyses of Economic Factors

4.3.1.1 Income
In this study, the Income is measured in terms of how the level of income are categories in low
income, Health problem, Negative family effect and effect of unemployment in economy. The
statistical values of respondents are presented in table 4.4
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Table 4.4 Economic Factor-Income
N Mean Std. Deviation
Income/Low Income 248 3.70 .774
Income/Health problem 248 3.29 1.043
Income/Negative family effect 248 3.53 .819
Income/effect of unemployment on 248 3.40 .930

the economy
Valid N (listwise) 248
Grand Mean 3.41
According to table 4.4, the mean response on low income, health problems having a negative
impact on families, and the impact of unemployment on the economy is 3.70, 3.29, 3.53, and 3.4,
respectively. This suggests that the majority of respondents concur that the low income causes
youth unemployment income to diminish or become unavailable, which translates to a high rate
of unemployment. Regarding health problem, the typical response value is 3.29. This shows that
the majority of respondents are divided on the issue of unemployment caused by a health
problem. The grand mean value of source of income is typically 3.41. This suggests that the
majority of those surveyed concur that the effects of teenage unemployment on different reasons
explained.
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Fig 4.1 Skill Mismatch
Source Own construct based on Bole sub city Worda 14 MIS data
One of the key causes of educated youth unemployment is the skill mismatch between the
educational system and the labor market, as is seen above. Of those surveyed, 42.74% strongly
agree. They link the mismatch between the labor market and the field of study to the current
unemployment. A mere increase in a higher institution's capacity without modifying the market
that graduates enter might have devastating effects. Given that Ethiopian government and public
institutions graduate students at a rate that exceeds 70% annually (Ministry of Education (MoE,
2015), the proportion of graduates who are unemployed is rising in relation to overall
unemployment. The number of college graduates was significantly higher than the work market
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could handle. As if it were convenient for this paper, the majority of respondents expressed their
emotions. First, they listed their department, university, and year of graduation before saying, "I
have spent so many years looking for job openings every day since graduating, but I have
received the response that there are no jobs for the department I graduated." This report claims
that there are numerous issues facing educated young and that there is no institutional connection
between higher education institutions and the labor market. Because of a mismatch between
labor supply and demand, or labor underutilization, there was an imbalanced demand for jobs.
4.3.1.2 Job Opportunity

Since it can have a bad influence on young people's well-being as well as a negative impact on
the nation's economic performance and social stability, youth unemployment is a significant
concern for Bole sub city woreda 14. The development of woreda is consequently most urgently
hampered by the need for employment generation. To enable professional staffing of the
occupations and so positively contribute to economic growth, another task is to provide
vocational and technical training for the workers. There are numerous fresh job seekers who
have registered in the Bole sub city woreda 14 databases. Following is an evaluation of the
identified socioeconomic and employment policy barriers for young people looking for work:
• lack of or insufficient information on employment opportunities and self-employment,

• inadequate and inefficient public employment services,
• limited access to finance to become self-employed,
• inadequate and inappropriate vocational training options (e.g. apprenticeships, technical
courses).
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Table 4.5 Economic Factor-Job Opportunity
Job Opportunity/lack of information on employment

248 3.84 1.115
opportunities and self-employment
Job Opportunity/inadequate public employment

248 3.78 1.345
services,
Job Opportunity/limited access to finance to become

248 4.00 1.136
self-employed,
Job Opportunity/inadequate and inappropriate

248 4.01 1.247
vocational training options
Grand Mean 3.90
Table 4.5 shows that, with the exception of two constructs—lack of knowledge on employment
and inadequate public employment—all other mean values are greater than the grand mean of
3.9. The job opportunity of receiving insufficient and inappropriate vocational training in their
line of work receives the highest mean score, 4.01, followed by limited access to financing to
start their own business, with a mean score of 4.00. This shows that the majority of respondents
concur that there are many career opportunities, but that the available training options and
vocational trainings are inadequate. However, as the mean value is 3.78, they are neither in
agreement nor disagreement on the job potential of having little access to financing to start their
own business.
4.3.1.3 Economic Factor-Saving/Investment

Bole Sub City Woreda 14 needs to take urgent action to address the significant issue of youth
unemployment. Political instability, high population density, a lack of vocational training options
for recent graduates, and ethnic tensions nationwide all contribute to the worsening of
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unemployment in the Bole sub-city. Therefore, policymakers must focus and ensure increased
economic growth and investment in order to meet the growing need for jobs, particularly among
young people. Additionally, the administration must address the ongoing political and ethnic
unrest before it negatively affects the economy.
Table 4.6 Economic Factor-Saving/Investment
Mea
N n Std. Deviation
Saving/assure an increase in economic

248 3.24 1.055
growth
Saving/investment in order to create

248 3.41 1.061
more jobs
Saving/increasing demand for jobs 248 3.53 .819
Grand Mean 3.39
Table 4.6 demonstrates that the mean economic component of increased employment demand,
investment, and saving power is 3.53, 3.41, and 3.24, respectively. As a result, the majority of
respondents think the economic factor contributing to the rise in demand for jobs in the woreda
14 is conceivable. However, neither agree nor disagree that it has power.
4.3.2 Analysis of Social Factors

Finding the right social element to influence unemployment and developing it is not the only
goal. The ultimate purpose of the whole youth job accessibility on health manner is to transform
young people's desired behavioral patterns. The primary predictors of youth unemployment,
along with socioeconomic variables, include health problems. Income & social protection,
unemployment & job insecurity, working circumstances, & food insecurity, basic utilities & the
environment are the categories of health factors.
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4.3.2.1 Social Factors– Income and social protection
The effectiveness of the social determinants affecting health as a result of income and social
protection is discussed in this section of the analysis. The non-medical elements that affect health
outcomes are known as social determinants of health. In addition to the larger group of factors
and systems influencing the conditions of daily life. These factors and systems include political
systems, societal norms, social policies, economic policies and systems, and development
objectives.
Table 4.7 Social Factor-Health

Me Std.
N an Deviation
Health/Income & social
248 3.21 1.008
protection
Health/unemployment & job
248 3.48 .753
insecurity
Health/working circumstances,
248 3.29 .971
& food insecurity
Health/basic utilities & the
248 3.51 .858
environment
Grand Mean 3.37
Table 4.7 shows that the grand mean value of 3.37 is not reached by the mean values of the job
insecurity construct. This shows that the majority of the respondents concur that youth
unemployment and job insecurity capture their attention and that they can readily distinguish this
from other socioeconomic issues affecting health.
4.3.2.2 Social Factors -Education

It is a known fact that less well-educated people have higher unemployment rates than better
educated people. A possible explanation of this finding is job competition: employers prefer
higher over lower educated workers for jobs that were previously occupied by lower-educated
employees. Inadequate education and lack of productivity is costing jobs. Unemployment
increases progressively with decreased educational levels; and the education system is not
producing the skills for the labour market. Labour supply is affected by the increase in the
number of job seekers over the years.
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Table 4.8 Social Factor-Education
Std.
N Mean Deviation
Education/Inadequate education 248 3.71 .651
Education/lack of productivity 248 3.12 1.140
Education/Labour supply is
affected by the increase in the 248 3.06 1.151
number of job seekers
Valid N (listwise)
248
G. Mean 3.30
As shown in table 4.8, There are numerous reasons for youth unemployment. The most
frequently advanced theory, however, is that young people's unemployment is caused by their
lack of education, training, and skills. Inadequate education, low production, and a rise in the
number of job seekers are represented by 3.71, 3.12, and 3.06 correspondingly. Which suggests
that the majority of respondents concur that receiving a good education has improved their
understanding of how social variables affect people. Knowledge has an overall mean value of
3.30. This shows that the majority of respondents have an excellent knowledge of the value of a
good education.
4.3.2.3 Social Factors –Skill/Training

The Georgina Diallo December 2011 UNICEF explanation claims that young people between the
ages of 15 and 24 are unable to pinpoint the skills they will require for upcoming economic
prospects. A common method for businesses to confirm the talents new hires claim to have is
lacking, and young people are also unable to receive training in pertinent skills. According to
Georgina Diallo, there is a gap between the criteria and the education and training systems,
which prevents young people without internet connection from taking advantage of online
training options. Young people need a mechanism to track their talents correctly, safely, and
verifiably so that they can share them with potential employers.
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Table 4.9 Social factors- Skill /Training
Std.
N Mean Deviation
Skill/unable to identify which skills they need

248 3.46 .752
for future employment opportunities
Skill/unable to access relevant skills training 248 3.25 .963
Skill/employers lack a standard way to verify

248 3.49 .868
the skills new employees claim
Grand Mean 3.4
As per Table 4.9 demonstration, on job market, young people are particularly vulnerable. Many
of them do not have the necessary skills, training, work experience, job-searching skills, or
financial resources to secure employment. According to the majority of respondents, one of the
biggest issues with youth unemployment is that there is no common method for businesses to
confirm the abilities that new hires claim they have. It is 3.49, which is greater than the overall
average of 3.4. The remaining, with a mean of 3.46 and 3.45, were respectively unable to
determine which skills they lacked and to access them respectively. Many people who do have
jobs put in a lot of overtime, have short-term or informal contracts, are paid little, and have little
to no social protection.
4.3.2.4 Social Factors –Tradition

The concept of unemployment related to the realm of socio-economy and politics while
unemployment experience takes the form of individual subjective involvements (Celik 2006:6).
It is now necessary to evaluate individual experiences in order to explore how individuals are
impacted by the connections between the political environment, the general economy, and
35 | P a g e
unemployment. Lack of entrepreneurship skills, extensive rural-to-urban migration, skill
mismatch with the labor market, and faster population growth are among important
socioeconomic issues that influence tradition.
Table 4.10 Social factor- tradition
Tradition/lack of entrepreneurship
248 3.67 .664
skill
Tradition/huge rural urban migration

248 3.12 1.140
Tradition/skill mismatch with the

248 3.21 1.008
labour market
Tradition/higher population growth 248 3.46 .752
Grand Mean 3.36
According to table 4.10, the mean response rate for the social aspects of tradition, larger
population growth, skill mismatch, and significant rural migration is 3.67, 3.46, 3.21, and 3.12,
respectively. This shows that the majority of respondents believe that a major issue is a lack of
entrepreneurship skills. The grand mean score of 3.36 indicates that the majority of respondents
do not believe that tradition may foster favorable attitudes regarding the elimination of
adolescent unemployment.
4.4 Correlation Analyses

The degree of correlation is measured using a variety of correlation coefficients. The Pearson
correlation coefficient, which solely considers a linear relationship between two variables, is the
most popular of these. A statistical measure that assesses the linear relationship between two
variables is the Pearson's correlation coefficient, commonly abbreviated as r. Its value falls
between +1 and -1, signifying a perfect positive and negative linear relationship between the two
36 | P a g e
variables, respectively. In order to offer the most reliable numbers for reporting in scientific
investigations, statistical tools like SPSS and SAS typically calculate the correlation coefficient.
A correlation value of zero, according to Cohen (1988), signifies that there is no linear
relationship between the two variables. A correlation value that is near to 1 indicates that the data
are more positively correlated than average. A correlation value that approaches -1 denotes a
linearly negative relationship between the two variables. The Pearson's correlation coefficient
can be interpreted using some well accepted rules. Cohen (1988) states that a Pearson correlation
coefficient value between 0.1 and 0.29 indicates a weak or tiny association between the two
variables, while a value between 0.3 and 0.49 indicates a moderate or medium relationship.
There is a strong or significant association between the variables being examined if the Pearson
correlation coefficient is between 0.5 and 1. The two fundamental presumptions that must be
taken into account while constructing the Pearson correlation function are that the variables have
a linear relationship and that both variables are normally distributed.
4.4.1 Relationship between Socio economic factors & Unemployment status

dimensions
Pearson correlation coefficient was used to measure the strength of the association between the
Unemployment status factors and the Socio-economic dimensions. Preliminary analyses have
been done to assure no violation of the above assumptions is committed. To this end, normality
and linearity of the scale distribution has been analyzed and the assumption of correlation is not
violated.
Table 4.11 Correlation between Socio economic Factors &Unemployment status

Dimensions
Socio Unemployme
Economic nt Youth
factors status
Socio Economic factors Pearson Correlation 1 .768**
Sig. (1-tailed) .000
N 248 248
Unemployment Youth Pearson Correlation .768** 1
status Sig. (1-tailed) .000
N 248 248
**. Correlation is significant at the 0.01 level (1-tailed).
37 | P a g e
Source IBM SPSS V22 output 2022
As shown in table 4.11, there is a positive relationship between the socio-economic factors and
the youth unemployment status. Pearson The two variables' correlation coefficient is 0.768,
which is higher than 0.5. This suggests that socioeconomic conditions and youth unemployment
have a significant relationship.
CHAPTER FIVE
SUMMARY OF THE FINDINGS, CONCLUSION AND

RECOMMENDATION
5.1 Summary of Findings
In this study, several factors that affect youth unemployment have been analyzed. The youth
unemployment status was used as the dependent variable. And also the independent variable is
grouped in to two, that are Economic factors that include Income, savings, job opportunity and
economic policy and also second independent variable is Social factors that include Education,
Health, Skills/training, and tradition. Data extracted from bole sub city woreda 14 data base
(August 30, 2013 E.C). from the period of 2010 E.C.-2013 E.C were analyzed. There is a
positive relationship between the socio-economic factors and the youth unemployment status.
Pearson The two variables' correlation coefficient is 0.768, which is higher than 0.5.
According to the findings, there is a strong correlation between socioeconomic characteristics

and youth unemployment. To facilitate assessment and targeting with research on youth
employment, the determining elements of young unemployment in Bole sub-city Woreda 14
were examined using correlation and regression analysis. First, we analyze the significance of
the link between the independent factors in our model and the dependent variable. This was
important to assess the model's capability to correctly forecast the dependent variable. Two
important factors that affect how much respondents make are gender and age. Men made up
69.4% of respondents, while women made up 30.6%, according to the data collected and
analyzed on table 4.1.48.8%, 32.7%, and 18.5% of the sample's respondents, respectively, fall
into the age brackets of 15 to 29, 30 to 60, and older than 60. Given that young and middle-aged
people are thought to be the most productive age groups, this suggests that the majority of job
searchers are in these age categories, which presents woreda 14 with a huge opportunity.
38 | P a g e
The respondents' occupation plays a substantial role in determining youth unemployed income.
According to the analysis shown in table 4.2, the percentages of workers employed by the
government, private businesses, self-employed individuals, and unemployed people are,
respectively, 29.8%, 19.0%, 7.7%, and 43.5%. This indicates that although while the majority of
respondents (56.5%) have their own money, which is encouraging, many of the respondents
(43.5%) are still young people who are unemployed, thus it will need a lot of work to provide job
possibilities for the youth in the woreda 14.
This study measures youth unemployment in terms of how it interacts with income, job
opportunities, savings, economic policy, health, education, skills, and tradition. Looking at the
individual variables, however, the perceptions of respondents on low income, health issues
having a negative impact on families, and the impact of unemployment on the economy which
are very important characteristics of youth unemployment are not as such effective as the mean
values are 3.70, 3.29, 3.53, and 3.4 respectively. The mean value of health problem is 3.29. This
implies that the majority of respondents do not concur that the young in the woreda region are
jobless as a result of health issues.
The time frame for the data used in this analysis was 2010–2013 EC. Additionally, the
investigation only included data from the Bole sub-city Woreda 14. As a result, both the time
period and the number of woredas included in the data set may be increased. Before drawing any
conclusions, it is important to recognize these restrictions. According to the research literature,
numerous empirical investigations use different econometric models to ascertain the effects of
variables. A dynamic model can be created to track changes in youth unemployment over time
because the time impacts of some variables can be seen in the term after. The explanatory power
of research will be improved much further in this approach.
In terms of the social aspects of health, education, skill, and tradition, the young unemployment
rate in the Woreda 14 is assessed. The highest mean value for youth unemployment is 3.4 for
skill/training, followed by 3.37, 3.36, and 3.30 for health, tradition, and education, respectively.
This shows that the majority of respondents concur that young unemployment is low because
they are educated, healthy, and traditional.
The socioeconomic characteristics and the youth unemployment rate are positively correlated, as
shown in Table 4.11, and this association is significant. Pearson The correlation coefficient
39 | P a g e
between the two variables is 0.768, which is greater than 0.5. This implies a considerable
connection between socioeconomic factors and youth unemployment. Last but not least, the
research's conclusions about the connections between economic factors and aspects of youth
unemployment show that they are high (.835), social factors and youth unemployment are
Moderate (.806), and therefore there is a substantial relationship between the two factors.
5.2 Conclusions
The purpose of this study is to investigate the factors that contribute to youth unemployment in
Bole Sub City Woreda 14 and offer solutions for reducing youth unemployment. In this study,
the factors influencing unemployment in Woreda 14 are examined using a linear regression
model. Youth unemployment status, the dependent variable, which was divided into employed
and jobless categories, served as the study's dependent variable. The study's conclusions in this
dependent variable are that educational status, age, location, skill mismatch, gender, income,
hopelessness, information asymmetry, and lack of skill/training are all significant factors in
explaining the difference in youth unemployment status.
The study's findings indicate that gender is a significant independent variable and that it affects
unemployment in a considerable way. Compared to female youth, male youth are more likely to
be employed than jobless. Men's literacy rates are particularly low compared to women's. Men
and women had higher and lower participation rates, respectively. For rural women, staying at
home to care for their families is a valid excuse, but for urban men it is typically being a student.
Women marry younger than men, which is a result of the disparity in opportunity structures
between men and women. Women are more likely than males to be unemployed while they are
young in metropolitan areas, particularly in Bole Sub City Woreda 14, and men do not marry as
young, which enables woreda 14 youth to acquire better education opportunity than women.
Job Position available Significant, youth unemployment among the Woreda 14 is discovered.
Youth are at a disadvantage on the job market due to a variety of variables, including the
information asymmetry of work. The focus of the current policy is to address the employment
challenge by promoting the private sector, increasing investment to increase productivity,
organizing youth, and providing loans with the integration of banks and microfinance institute to
provide a loan for the youth business proposal, that helps them to crop cash. In order to
40 | P a g e
encourage them, the woreda 14 have made it possible for various work loans for groups of loans
to be used to invest in their business proposals.
The chances for young people will be limited as long as the Woreda 14 small and medium
projects continue to experience slow growth, which also affects the number of jobs created
annually. The accessibility, and availability of jobs all contribute significantly to the labor
market's effectiveness. Information on the labor market is limited, and not all job seekers have
access to it. The absence of these services disadvantages those just entering the workforce.
The Woreda 14 youth unemployment data source reveals that the majority of the unemployed are
uneducated or have only a limited amount of education, despite the fact that there is a growing
population of high school graduates in the labor sector. The impact of skills on youth
employment status results, which showed that unskilled youth were more likely to be
unemployed than employed, confirmed the results on schooling. In addition, the Woreda 14
Education Department is offering soft skills training to young people who are unemployed in
order to help them become better communicators, problem solvers, time managers, technology
users, curriculum creators, and self-explainers so they can find better employment opportunities.
This kind of action has had a positive impact on the youth unemployment rate. and would be
inspired to carry on; also, it serves as an excellent model for other woreda adolescent
unemployment.
As one of the dependent variables of social factors, education is one that we attempt to discuss in
this study. Youths and their parents desire an education to better their social and economic
circumstances; however, young people frequently experience post-secondary unemployment and
long periods of unemployment. Education is crucial in the Bole sub city of Woreda 14 since
employment creation is difficult due to the enormous growth in student enrollment at all levels.
This widens the gap between what students actually receive in school and what they expect.To
highlight a few of the gaps, the government's poor economic performance and its failure to offer
enough opportunities are recognized and investigated as contributing factors to graduate young
unemployment. The labor market and skill mismatch are also cited as contributing factors to
unemployment since they push recent graduates to rely more on the government than on building
their own businesses.
41 | P a g e
Furthermore, migration from rural to urban areas is one of the factors contributing to the
imbalance between job demand and supply, and it has a direct and indirect effect on the rise in
youth unemployment in woreda 14. Youth groups migrate from rural to urban areas, particularly
Bole sub city woreda 14, in search of employment opportunities, which reduces the availability
of employment opportunities in rural areas. The unemployment rate will rise as the population
increases more quickly. Additionally, the study made an effort to examine and evaluate the
solutions offered to the unemployment problem. A few of the suggested tactics include luring
foreign investment, skill-matching schooling with the job market, and concentrating on
enhancing students' entrepreneurial skills. As a further measure to address the issue of educated
youth unemployment, sufficient job opportunities should be created in both formal and informal
settings in rural and urban locations.
Last but not least, this study came to the conclusion that the study in Bole sub city woreda 14
gave a thorough account of the key elements of the young labor market. The labor market in the
aforementioned sector has significantly improved, however youth unemployment in bole sub city
woreda 14 is still pervasive. The research reveals that in addition to implementing tactics that
will help the growing number of educated youth entering the job market, policies should be made
to address the poor labor market circumstances for women in both rural and urban locations.
Along with boosting job information, the study's conclusion included concrete employment
policies and initiatives that target youth and seem to have promise. Other goals included
reducing skill mismatches and information asymmetry. Additionally, by working with the private
sector and entrepreneurs, good career possibilities can be created for young people who enroll in
comprehensive soft skill training.
42 | P a g e
5.3 Recommendations
Based on the findings of the research the following recommendations are made.
● Policymakers and higher education institutions must work together to reduce the number
of unemployed young people and attract more potential foreign investment to the
country's economy.
● Rural-urban migration is one of the main causes of youth unemployment, and it needs to
be addressed by offering young people who move from the countryside to cities
employment options.
● In order to reduce the skill mismatch between the profession of the graduates and the
labor market, education is one of the dependent variables of social factors, and it is
necessary to increase the attentiveness of educational institutions to the demands of the
labor market.
● A significant contributor to youth unemployment is the asymmetry of job information.
The Woreda 14 administration must endeavor to obtain employment data for each
unemployed young person in order to solve this issue.
● One of the significant problems with increasing youth unemployment is limited job
availability, so the private sector's and entrepreneurs' participation has a big effect on
reducing the number of unemployed youth.
● Hopelessness and unwillingness among young people to turn to alcohol, chat, cigarettes,
and other addictions, rather than focus on searching for jobs are major factors in the
tremendous increase in the unemployment rate. Therefore, the Woreda 14 administration
has to build youth trust and confidence within themselves and with other stakeholders.
● The government should take steps to foster the entrepreneurial abilities of the
unemployed youth and encourage them to design their own company proposals and use
43 | P a g e
microfinance loans to complete their own projects in order to inspire youths to expect
jobs from other sources besides the government.
● Insufficient work possibilities in the public, private, and investment sectors are one of the
factors causing unemployment. In order to address unemployment, the government must
establish the institutions and processes needed, such as a job portal system that accepts
applications in a transparent manner and hires candidates based on their qualifications
and recommendations.
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APPENDICES
47 | P a g e
48 | P a g e
APPENDICES-1
A study on the Determinants of youth unemployment in case of Bole sub city woreda 14. The purpose of study is to identify and
describe the determinants of youth unemployment. Your helpful collaboration will enable the researcher to locate trustworthy data,
which will be utilized solely for educational purposes. Please make an effort to respond to each query.
1. Gender Men Women
2. Age 15-29 30-60 > 60
3. Marital Status Married Single Divorced Widowed
4. Education Certificate Diploma Degree Masters
5.Location Sub city Woreda Kebele
The researcher can be conducted via Tel. XXXXXXXX
Part I. Background Information
DIRECTION: Please choose your response by check the appropriate response category for each question.
Part II. Unemployment Situation

49 | P a g e
1. Where do you With Rented With Own
live? Family home home
2. What is the Own Family Other If other

source of your salary please
Income? specify_____
3.How long have 1-3year 4-6 year Above
you been 6year
Unemployed?
4.What are the Economic Migration Skill Lack of
major causes of factors from rural mismatch Information
youth to urban
unemployment in
your sub city?
5.What are the Haplessne Unwilling Lack of Lack of
main effect of ss ness for informatio Information
youth work n
unemployment in
your sub city?
Part III. Unemployment's social and demographic impact on unemployed youth
3.1 Youth Unemployment Status Strongly Disagree (2) Neither Agree Agree (4) Strongly Agree
Disagree (1) or Disagree (3) (5)
The majority of young people in bole sub city
area are unemployed
Government, non-governmental organizations,
and the private sector all play important roles in
50 | P a g e
reducing youth unemployment.
Unemployed youth are more likely to suffer from
depression and other mental health issues.
Youth unemployment contributes significantly to
political instability, crime, prostitution, drug and
alcohol addiction.
Even if no one wants to work, there are plenty of
job opportunities for young people in the Bole
sub-city.
Skill mismatch and information asymmetry play a
significant role in the rise of youth
unemployment.
Youth have a significant role to play in reducing
the extent of youth unemployment factors.
3.1 Youth Unemployment Status Strongly Disagree (2) Neither Agree Agree (4) Strongly Agree
Disagree (1) or Disagree (3) (5)
One of the most serious socioeconomic issues is
youth unemployment.
In Bole sub-city woreda 14, female
unemployment is higher than male
unemployment.
51 | P a g e
Inaccessibility to job information is a major
influential determinant of youth unemployment.
Unemployment is a major factor in youth

chewing chat, drinking alcohol, and/or doing
commercial sex work.
Youth unemployment conceals significant
disparities among youth groups, such as urban
youth, young women, and those with lower
educational attainment.
A high population density would have a
significant impact on youth employment.
A high level of unemployment indicates that a
country's economy is failing to make effective use
of its labor resources.
3.1 Youth Unemployment Status Strongly Strongly Disagree (2) Neither Agree Agree (4) Strongly
Disagree (1) or Disagree Agree (5)
(3)
High youth unemployment among university
graduates is caused by a mismatch between
educational outputs and labor market skills.
The unbalanced relationship between the rate of
economic development and rapid population
52 | P a g e
growth, as well as urbanization, has aggravated
the youth unemployment problem significantly.
Job opportunities for young people in both the
formal and informal sectors are concentrated in
major cities.
Unemployed youth are incapable of perceiving
and comprehending employment, employability,
and the causes of unemployment on their own.
Unemployed youth are incapable of perceiving
and comprehending employment, employability,
and the causes of unemployment on their own.
53 | P a g e
Table 3.1 Frequency Distribution of unemployment
Items Responses in
Frequency Percent Values/Categories
Gender
Male 172 69% 1
Female 76 31% 0
Total 248 100%
Age
15-29 121 49% 0
30-60 81 33% 1
Above 60 46 19% 2
Total 248 100%
Martial Status
Married 94 38% 0
Single 127 51% 1
Divorced 15 6% 2
Widow 12 5% 3
Total 248 100%
Education
Certificate 43 17% 0
Diploma 49 20% 1
Degree
54 | P a g e 137 55% 2
Masters 15 6% 3
PHD and Above 4 2% 4
55 | P a g e
2.5 Cronbach’s Alpha Test
/VARIABLES=EF1 EF2 EF3 EF4

Cronbach's Alpha N of N of
Items Items
0.651 4
/VARIABLE SF1 SF2 SF3 SF4
Items Items
0.494 4
/VARIABLE YS1 YS2

Items Items
0.529 2
iv | P a g e

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Unity University

School of Graduate Studies

THE DETERMINANTS OF YOUTH UNEMPLOYMENT:

A Thesis submitted to the School of Graduate Studies of Unity University in

Prepared by: Zelalem Kiros Tesfaye

SCHOOL OF GRADUATE STUDIES

THE DETERMINANTS OF YOUTH UNEMPLOYMENT IN CASE OF BOLE SUBCITY

ZELALEM KIROS TESFAYE

Approval of Board of Examiners

External Examiner Internal Examiner

Name: ____________________ Name: ____________________

Signature: ________________ Signature: ________________

Date: ___________________ Date: _____________________

Chairperson, Department Graduate Committee

Table 4.1 Educational status of respondents……………………………………………….….25

Table 4.4 Economic Factor-Income…………………………………………………………...28

Table 4.5 Economic Factor-Job Opportunity………………………………………………….31

Table 4.6 Economic Factor-Saving/Investment……………………………………………….32

Table 4.7 Social Factor-Health………………………………………………………………...33

Table 4.8 Social Factor-Education…………………………………………………………….34

Table 4.9 Social factors- Skill /Training………………………………………………………35

Table 4.10 Social factor- tradition…………………………………………………….……….36

Figure 1.1 Minimum Wage segmented Labor Market………………………………….…......13

Figure 2.2 Conceptual framework of determinates of youth unemployment…………........….18

Figure 3.1 Unemployment trend from 2010 -2013E.C……………………………………...…21

Figure 4.1 Skill Mismatch and Information Asymmetry……………………….……………...29

NGO Non-Governmental organization

1.1 Background of the study

1.2 Statement of Problem

1.3 Research Questions

1.4.2 Specific Objective

 To assess the extent of youth unemployment in this study area.

1.5 Scope and limitation of the Study

It is significant because it will add to already existing body of knowledge of youth

1.7 Organization of the research

2.1 Theoretical Review

2.1.2.1 Cyclical Unemployment

2.1.2.2 Frictional Unemployment

2.1.2.3 Structural Unemployment

2.1.3 Natural Unemployment

2.2 Measurements of Unemployment

2.2.2 Labor Force Participation Rate

2.2.3 Minimum-wage effects on skilled and unskilled labor

2.2.3 Models of Unemployment

2.2.3.2 The Lake Model of Unemployment and Employment

2.3 Empirical Literature

2.3.1 Effects of Unemployment

2.5 Conceptual Frame Work

RESEARCH DESIGN AND METHODOLOGY

3.1 Research Design

3.2 Sampling Design

3.3.2 Type of Unemployed youth

3.3.3 Study population and Sampling Technique

3.3.4 Sample Size

Fig 3.1 Unemployment trend from 2010 -2013E.C

Male Female Total

6,000 Table 3. Unemployment trend from

Source: Bole sub

3.4 Data source and acquiring techniques

3.5 Data Analysis

3.5.1 Descriptive statistics

3.5.2 Inferential statistics

Name: Name:

Signature: Signature:

Date: _ Date: ___