Role of Informal Sector in Unemployment Reduction in Adamawa North Senatorial District

International Journal of Research and Innovation in Social Science (IJRISS) | Volume IV, Issue IX, September 2020 | ISSN 2454–6186

Role of Informal Sector in Unemployment Reduction in Adamawa North Senatorial District

Hamisu Ali¹, Babangida Adamu^{2
1, 2}Faculty of Social and Management Sciences, Department of Economics, Adamawa State University, Mubi

Abstract: Over the years Nigeria has been battling with the problem of unemployment among the youths. The rate of unemployment in Adamawa North District is not only shocking but a natural humiliation reducing meaningful and tangible action. The contribution of informal sector to reducing unemployment and growth of the Nigeria economy is quite significant. The study examines the role of informal sector in unemployment reduction in Adamawa North Senatorial District. This study seeks to determine the relationship between informal sector and unemployment in the senatorial district, and also suggest ways of reducing unemployment through the informal sector. The study used primary data collected through the use of structured questionnaires. Two hundred and ten (210) questionnaires were distributed to the five (5) local government areas of the districts (Mubi South, Mubi North, Maiha, Michika and Madagali Local Government Areas). From the total number of questionnaires distributed, one hundred (100) were filled and returned successfully. The study employed simple percentage and chi-square to analyse the data collected. The result obtain revealed that there is positive significant relationship between informal sector and unemployment. The study recommends that; the government should build skills acquisition centres in all the study area, where at the end of the completion of the programmes trainees are assisted to establish business of their own. Government should improve ways of reducing unemployment through non-governmental organization (NGOs) and self-reliance through empowerment.

Keyword: Informal Sector, Unemployment, Non-Governmental (NGO).

I. INTRODUCTION

All over the world today, the concept of the informal sector has been applied to analyze the employment situation and policy option in most developing countries including Nigeria. Formal and informal sector features characterize the nature of the labour markets in West Africa. Particularly characterized by this dichotomy is the urban labour market. The cardinal differences between the formal and informal sectors can be seen in the light of the segmentation between the different parts of labour market in Nigeria.

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