“The Causes and Effects of Unemployment on University Graduates in Ambo Town, West Shoa, Oromia Regional State”

Abstract

Unemployment causes individuals to suffer from financial hardship that impacts families, relationships, and communities. But, there are few studies that identified its cause, consequences and solutions trends. The purpose of this study was to assess the causes and effects of unemployment on University graduates in Ambo town West Shoa, Oromia Regional State. The mixed research approaches and the causes and effects research designs were used in this research. The data were analyzed by using descriptive statistical analysis i.e. frequency distributions, percentages, mean and standard deviations. A total of 149 questionnaires were distributed only 135were filled and made a return rate of 90.6%. Accordingly, the average mean of the Causes of unemployment is (M=3.88, SD= .52). 48(35.6%) them have been unemployed for more than 5 years. In addition, 59 (43.7%) and 69(51.1%) of unemployed did meet their basic needs by depending on family and relatives and planned in the future to search for government office respectively. 96(71.1%) were suffered from by this high degree of social consequences unemployment such as Ignorance in social interaction, Stigma/ being termed as unemployed, Victim of anti- social behavior . But, majority of them 45(33.3%) and 50(37%) was feeling loneliness and demoralized and strained family relationship respectively. About 54(40%) were to prefer to be employed in the formal sector; while, 20(14.8%) have been feeling of boredom, difficulty in surviving financially, feel life is empty and feel lonelier since unemployed. Accordingly, the aggregate mean value of the respondents on the items opinion of unemployed graduates towards job was a moderate mean value (M= 3.37, SD=.64). Despite of several psychological, social and economic impacts of unemployment on the unemployed graduates most of the respondents79 (58.5%) think that the problems caused by graduates’ unemployment can be reduced. 50 (37%) of them were responded that direct job creation/public work program is one ways of combating their unemployment condition. But, 40 (29.6%) of would combat their unemployment condition by promoting entrepreneurship. Most of them 60(44.4%) also identified that community is the vital responsible body in tackling the problem of unemployment. Hence, unemployed university graduates in Ambo town have faced the negative socio-economic and psychological consequences. Entrepreneurship studies should also be part of the curriculum of secondary and tertiary institutions to enable unemployed university graduates to be self-reliant and to ensure that graduates have the skills to create jobs and not be mere job seekers.