IMPACT OF UNEMPLOYMENT ON GRADUATES` ATTITUDE TOWARDS EDUCATION IN SOMALIA. Case study of Mogadishu

ECONOMIC POLICY RESEARCH INSTITUTE SAVANNAH UNIVERSITY SOMALIA

IMPACT OF UNEMPLOYMENT ON GRADUATES` ATTITUDE TOWARDS EDUCATION IN SOMALIA.Case study of Mogadishu

ParticipantsThe survey was conducted by the following people:Mr. Nsubuga Dan Lead ResearcherMr. Ahamed Sharif Adan Research AssistantMr. Abdurashid Omar Research AdviserMr. Muhoozi Happy Research EditorMiss. Ogutu Auma Grace Chief Editor

Structure of the presentationIntroductionDiscussion of the methodologyDiscussion of the survey ResultsDiscussion of the Policy strategiesQuestions

Abstract

In Somalia, according to UNDP report (2012),Majority of the graduates are unemployed. Widespread graduate unemployment is a critical aspect of the crisis facing the nation. According to UNDP Somalia Human Development Report (2012), the overall unemployment rate among people aged 15 to 64, was estimated at 54 percent in Somalia, up from 47 percent in 2002

ContinuedAmong the working-age population, one of the most damaging individual experiences is unemployment. Many previous studies have confirmed the devastating effects of unemployment on individual attitude towards the surrounding environment and well-being both pecuniary and non-pecuniary. Using the data from the survey, we examined the impact of unemployment on the graduates` attitudes toward education.

General Objective of the studyThe general objective of the study was to determine the impact of unemployment on graduates` attitudes toward education

Specific objectives

To determine the graduates` attitude towards educationTo provide solutions to the problem of graduate unemployment in Somalia

Research QuestionsWhat is the impact of unemployment on the graduates` attitudes toward education?What is the graduates` attitude towards Education?What are the likely solutions to graduates unemployment in Somalia?

Methodology

The methodology used in the study involved the use of questionnaires in conducting interviews.Respondents for the study were asked to respond to questions posed by the researcher on the attitudes of graduates toward education in SomaliaThe respondents included unemployed graduates of all levels ranging from High school graduates to Post graduates

Sample sizeThe sample size included 100 graduates from Mogadishu.They were randomly selected using area random sampling.

Data AnalysisThe survey generated discrete, categorical and measurable data. The data was analysed using SPSS (Statistical package for social scientists) for descriptive analysis and regression analysis.

Definition of unemploymentAccording to Mankiw (2003), a person is considered employed if he or she spent most of the previous week working at a paid job. A person is unemployed if he or she is on temporary layoff, is looking for job, or is waiting for the start date of a new job

PRESENTATION AND DISCUSSION OF THE FINDINGS

3.1 Characteristics of the Respondents 3.1.1Age of the respondentResults from the survey indicated that 75 percent of the respondents were between the ages of 15-30 years.

3.1.1Age of the respondent

Age GroupFrequencyPercentValid PercentCumulative15-3072757575.031-401717.717.792.741-5077.37.3100Total96100100

InterpretationResults from the survey indicated that 75 percent of the respondents were between the ages of 15-30 yearsIn modern society, employment is a central feature of daily life and the main source of financial independence, status, prestige, identity, and social participation. Between the ages of 15 and 30, an individual fights for financial independence, status and identity and in so doing the individual contributes significantly to the development of the communityHowever, from the above results, it is realized that the most productive ages of the community are put to waste with limited contributions to the development of the state.

3.1.2 Gender of the respondentGenderFrequencyPercentValid PercentCumulativeMale7679.279.279.2Female2020.820.8100.0Total96100.0100.0

InterpretationResults from the survey indicated that 79 percent of the unemployed respondents were Males and 21 percent were females. Being the major bread winners of the family unemployment has more devastating impacts on the males than the females because they have a lot of responsibilities to take care of.

3.1.2 Marital Status of the respondentsMarital StatusFrequency PercentValid PercentCumulativeSingle6062.562.562.5Married 2930.230.292.7Divorced55.25.297.9Widowed2 2.12.1100Total96100100

InterpretationResults from the survey indicated that 62.5 percent of the respondents were single and 30.2 percent were married. Though of marriageable age, 62.5 percent of the respondents were still single. The main reason of their status was lack of employment.

3.1.4Education Level of Respondents

Education LevelFrequencyPercentValid PercentCumulativePrimary88.38.38.3High School1414.614.622.9Technical 77.37.330.2University6163.563.593.8Post-Graduate66.36.3100Total96100100

InterpretationResults from the survey indicated that 63.5 percent of the respondents were university graduates. University graduates are a very important pool of productive human capital that every nation strives to attain.However, if that labour pool is not utilized in the most efficient way it retards the nation especially if the education system does not produce technical skills. These skills encourage creativity and innovation which in turn facilitate production of job creators other than job seekers.

3.1.5 Unemployment type of the respondentsUnemployment typeFrequencyPercentValid PercentCumulativeVoluntary3334.434.434.4Involuntary5254.254.288.5Seasonal 1111.511.5100Total96100100

InterpretationResults from the survey indicated that 34.4 percent of the respondents were voluntarily unemployed, 54.2 percent involuntarily unemployed and 11.5 percent were seasonally unemployed. The results revealed that majority of Somali graduates are unemployed because of factors beyond their control that is to say not of their own making. The factors presented that caused their unemployment included; company closures, dismissal due to lack of adequate technical skills that the foreign companies and some local ones require and shortage of employment opportunities in Somalia.yet education institutions continue producing more graduates competing for the few available opportunities

3.1.6Unemployment Period of the respondent

Unemployment PeriodFrequencyPercentValidCumulativeless than 6 months2324.024.024.06-12 months3233.333.357.31-2 years1212.512.569.82-5 years1212.512.582.3>5 years1717.717.7100.0Total96100.0100.0

InterpretationResults from the study indicated that 24 percent of the respondents were unemployed for less than 6 months, 33.3 percent were unemployed for 6 to 12 months, 12.5 percent were unemployed from 1 to 2 years, 12.5 percent unemployed from 2 to 5 years and 17.7 percent were unemployed for more than 5 years.The survey shows that there are a significant number of graduates who have been unemployed for more than 5 years. This calls for urgent government intervention in order to reduce their vulnerability to falling into dubious means of earning a living.

3.2Respondents` attitudes toward education

In this section the survey measured the respondents attitudes toward education using a number of indicators or parameters as shown below:

3.2.1 Do you still consider paying school fees for your children up to the university?

The survey used this parameter to determine the respondents` attitudes toward education.The parameter indicated if after the respondent being unemployed he/she still considered paying school fees for his/her children up to University level.

Table 3.8: Do you still consider paying school fees for your children up to university?

ResponseFrequencyPercentValid PercentCumulativeYes4951.051.051.0No4749.049.0100.0Total96100.0100.0

InterpretationResults from the survey indicated that 51 percent of the respondents still considered paying school fees for their Children up to university. This indicated that the unemployed graduates still have positive attitudes toward education and they need their children to get education. This attitude will help to promote education as the parents and parents-to-be still consider fostering education by paying school fees for their children. However, when we compared the percentage of those respondents who still considered paying school fees for their children up to University (51 percent) to the percentage of those who did not consider paying school fees for their children (49 Percent), the study revealed worrying results.

3.2.2Responsibility in paying school fees for Children

Responsibility in paying children`s school fees by the respondents was used as an indicator of the respondents attitudes towards education. After being unemployed, the respondents were asked if they still felt that it is their responsibility to pay school fees for their Children. The study found the following responses.

Do you feel it is your responsibility to pay school fees for your Children?ResponseFrequencyPercentValid PercentCumulativeYes58606060No384040100.0Total96100.0100.0

InterpretationResults from the survey indicated that 60 percent of the respondents felt that it is still their responsibility to pay school fees for their children, while 40 percent of the respondents felt that it is not. This indicated that because of lack of employment respondents no longer felt that it was their responsibility to pay school fees for their children. From the results above it can be concluded that unemployment adversely affects people`s attitude towards education.This therefore, calls for urgent intervention by the state to either offer free education or work on a strong policy that will facilitate employment creation, if the country is to achieve development and stability.

3.2.3Blame on the education system for the unemployment prevalence.

This was also used in the study as a measure or indicator of the respondents` attitudes toward education. The respondents were asked whether they blamed the education system for their unemployment.

Do you blame the education system for unemployment?ResponseFrequencyPercentValidCumulativeYes3233.333.333.3No6466.766.7100.0Total96100.0100.0

Interpretation66.7 percent of the respondents did not blame the education system for their unemploymentthis is an indicator of having positive attitudes toward education.33.3 percent of the respondents revealed that they blamed the education system for their unemployment

ContinuedThe survey found that the system creates job seekers rather than job creators yet in the economy there is limited number of white collar jobs as compared to the number of graduates that are produced by the numerous education institutions.This is a significant indicator that there is a considerable number of people who blame the education system as the major cause of unemployment and this attitude increases, the longer an individual stays unemployed

3.2.4Opportunity cost of pursuing education

This was used as an indicator in measuring the respondents attitudes toward education as it measures the alternative foregone as an individual pursues education. These costs include time and money spent pursuing education.

Do you think you wasted your time and money by pursuing educationResponseFrequencyPercentValid PercentCumulativeYes2121.921.921.9No7578.178.1100.0Total96100.0100.0

Interpretationthe study indicated that 78.1 percent of the respondents didnt incur opportunity cost by pursuing education. This meant that they did not waste their money and time pursuing education.22 percent of the respondents indicated that they incurred high opportunity costs in pursuing education thereby wasting their time and money. This is an indicator of a negative attitude towards education by the respondents.

ContinuedThough the 22 percent of the respondents with a negative attitude seems insignificant, the study showed that the longer an individual stays unemployed, the more he/she develops a more negative attitude towards education. In the long run this attitude will negatively impact on economic growth as he/she will not be in a position to promote education for his/her children.

POLICY RECOMMENDATIONS

What should be done to reduce unemployment?

In Somalia, majority of the graduates are unemployed. Widespread graduate unemployment is a critical aspect of the crisis facing the nation, but cannot be tackled in isolation from the wider crisis confronting the Somali economy. Sustainable employment creation should be an essential aspect of any economic growth strategy addressing the dual challenges of providing decent work to graduates and strengthening their capacities for national development. This can be achieved through the following strategies:

1. Education Diversification

At present, the economic entities operating in the country mainly consist of telecommunications (especially telephone) firms, money transfer entities (orhawalad), water/power distribution firms and petty traders. These private sector entities are far from being able to absorb the ever increasing unemployed or under-employed graduates.This creates need for an extensive approach to widening the employment search and creation for the graduates

ContinuedThis can be done by extensively opening up vocational training centers.This will provide the demoralized graduates with technical skills on top of the white collar skills that they acquired in the universitiesThe role of the government would be to re-open the numerous vocational and technical centers/institutes, which Somalia had before the start of its tragic civil war

2. Facilitating the growth of small and Medium Enterprises.The national authorities could encourage and promote small and medium enterprises (SMEs) to aid the graduates as another important approach for enhancing employment opportunities and eradicating poverty among them.

3. Adoption of import substitution industrialization strategy.

Import substitution industrialization (ISI) is a trade and economic policy that advocates replacing foreign imports with domestic production.ISI is based on the premise that a country should attempt to reduce its foreign dependency through the local production of formerly imported industrialized products.

ContinuedISI works by having the state lead economic development through nationalization and subsidization of vital industries (including agriculture, power generation, etc.). It is the responsibility of the government of Somalia to identify the key strategic industries in the country that will help to enhance the growth of other industries in key sectors in order to achieve increased production

Key noteIn conclusion it is up to Africans to come up with African solutions to African problems as it is the responsibility of all Africans to focus on our continent and strategizes ways that will enhance our growth and development.May Allah save and protect our great nation Somalia.

Thank You