Case study Essay Example | Topics and Well Written Essays - 500 words - 59

Case study - Essay Example Unfortunately, the urban employment opportunities could only absorb a small section of the unemployed population. At the same time, the mining and demand for labor in the rural agricultural sector increased. The mining industry, involving companies like Shell and Texaco could only take contribute little to employment rates despite the revenue obtained from the sector. The relief to the employment status in the country was witnessed with the rise in industrialization, manufacturing, and politics. Manufacturing and government jobs became a source of employment for the skilled and educated people in the population. This caused a considerable decrease in unemployment rates from 15% to 9.9% in 1973. This was however to increase with economic challenge to a maximum of 20% in 1990. From this time, government efforts served to diversify the economy and reduce the rates. Unemployment rate is the measure of the proportion of employable people in the population who have lost their jobs or are unsuccessful in seeking jobs. The rate is an important indicator of economic productivity of a country (Dwivedi, 2001). A country that has a large number of people willing to work but cannot secure employment cannot realize its economic possibilities. In addition, high unemployment rate indicates poor economic wellbeing of the population. There are three major types of unemployment. First, there is the frictional unemployment. This refers to the proportion of people who are seeking suitable jobs. This means that they can at least secure jobs, but they are unemployed seeking better jobs. Secondly, there is cyclical unemployment. In this case, the unemployment rate increases with recession and decreases with the expansion in the business cycle. People are laid-off from companies and businesses during the recession and become unemployed. The third type of unemployment is structural unemployment. This happens when there is a mismatch