Critical Assessment Of The Impact Of Job Losses On Standard Of Living
Job losses can have a profound impact on an individual’s or community’s standard of living, affecting various facets of daily life. Financial stability is one of the primary areas affected, as the loss of income can lead to difficulty meeting basic needs such as housing, food, and healthcare. This financial strain can also cascade into other areas, such as education, leisure activities, and overall quality of life. Additionally, job loss can cause psychological distress, including feelings of insecurity, anxiety, and depression, which further impact well-being. Social connections may also suffer as individuals may withdraw from social activities due to financial constraints or feelings of shame. Moreover, job loss can hinder career progression and future earning potential, creating long-term challenges for upward mobility and economic resilience. In essence, the repercussions of job loss extend beyond immediate financial concerns to encompass emotional, social, and professional dimensions of life, significantly altering one’s standard of living.
The study examined the impact of job losses on standard of living in Nigeria. The major objective of the study was to examine the impact of job losses on standard of living in Nigeria using a descriptive research approach. The data collection instruments were questionnaires, oral interviews and telephone conversations. The data collected was presented, analyzed and interpreted using tables, charts and simple percentages. It was revealed that one of the major causes of social vices like book haram insurgency, kidnapping, rapping, cultism, armed robbery, among others in our society today is job losses and unemployment. It was recommended that in order to reduce the suffering arising from job losses individual should look for alternatives immediately a job losses occurs. Retaining aimed at self employment could be an alternative. It was also recommended that those in current employment should save for the rain day. It is also recommended that working class individuals should be creative and industrious in their place of work to avoid using their jobs because the resultant effect of job losses is disastrous.
Title Page i
Approval Page ii
Dedication iii
Acknowledgments iv
Abstract v
Table of Contents vi
CHAPTER ONE
1.0 Introduction 1
1.1 Background of the study 1
1.2 Statement of the problem 2
1.3 Objective of the study 3
1.4 Research questions 4
1.5 Statement of hypothesis 5
1.6 Significance of the study 5
1.7 Scope and limitation of the study 6
1.8 Definitions of terms 7
CHAPTER TWO
2.0 Review of literature 9
2.1 Conceptual framework 9
2.1.1 Job loss 9
2.1.2 Types of job losses 10
2.1.3 Causes of job losses in Nigeria 12
2.1.4 The economic implication of job losses in Nigeria 13
2.1.5 Efforts made to curb job losses in Nigeria 14
2.1.6 Standard of living 15
2.2 Theoretical framework 16
2.2.1 Economic growth and income inequality 16
2.2.2 Understanding the concept of income 19
2.2.3 Overview of inequality 20
2.3 Current review of literature (From 2000-2014) 21
2.4 Summary 24
2.4.1 Summary of the view of the scholar on the subject matter 24
CHAPTER THREE
3.0 Research methodology 26
3.1 Research design 26
3.2 Population characteristics 26
3.3 Population, sample size and sampling techniques 26
3.4 Data collection instrument 28
3.5 Administration of data collection instrument 29
3.6 Validity and reliability of measuring instrument 30
3.7 Statistical instrument to be used in the study 30
CHAPTER FOUR
4.0 Presentation and analysis of data 32
4.1 Introduction 32
4.2 Presentation of data 32
4.3 Analysis of data 33
4.4 Test of hypothesis 43
CHAPTER FIVE
5.0 Summary of findings, Conclusion and
Recommendations 48
5.1 Introduction 48
5.2 Summary of findings 48
5.3 Conclusion 49
5.4 Recommendations 50
Bibliography 52
Appendix I 53
Appendix II (Questionnaire) 54-55
INTRODUCTION
1.1 BACKGROUND OF STUDY
When job losses occur, people lose their means of livelihood. Dependents suffer and the stress of coping with the standard of living which the individual had acquired while at wok increases. With little or no income coming in the affected person deflects his savings and sometimes begins to borrow to keep body and soul together, while the individual is granting under this condition, credits obtained through mortgage, insurance and other household items continues to mount, the study will do and inept investigation on the current standard of living in Nigeria and how it is worsened by job losses.
Graduates job losses creates social problems of intense degree, if people are comfortable employed, the standard of living of the people will be encourage job losses ruins man’s self respect by depriving him of an honorable opportunity of earning a good living, it brings frustration to the graduates by making them feel hopeless and frustrated. Job losses lower’s ones power of concentration and his capacity or ability for normal enjoyment. It causes a lot of confusion and hazard in the families this study with go a long way to investigate the extent of graduates job losses in Nigeria and determine its effects of the it the study also bring light to some of the possible solution by of job losses, currently the Nigeria economy since the attainment of political independence in 1960 has undergo fundamental structural changes resulting to structural shifts which have however not resulted in any significance sustainable economy growth and development which will enhance job opportunities and reduce job losses in Nigeria, recently, available data shows that Nigeria economy grew relatively in the greater part in 1970’s , with respect to the oil boom of the 1970’s whose extreme profit resulted to wasteful expenditure in the public sector leading to dislocation of the employment factor and also distorted the revenue has for policy planning.
1.2 STATEMENT OF THE PROBLEM
1. In the last two decades in Nigeria, many industries have folded due to a number of reasons, such as lack of power and other infrastructural facilities.
2. Many firms groan under the increasing cost of doing business in Nigeria and this situation has resulted in capital flight as foreign firms have wound up and taking their investments to other countries.
3. The local industrial have not fared better as many also closed due to harse operating conditions, the resultant social effect is job losses which many able bodied men and women have suffered.
4. This situation has affected \people standard of living which has drastically dropped in Nigeria. The average Nigeria lives on less than two dollars a day acceding United Nations development index.
5. The purchasing power of the people has seriously dropped leaving the ware house full of inventories, how does a person has lost his job cope with the increasing cost of living in Nigeria how does he pay school fees for his children.
1.3 OBJECTIVES OF THE STUDY
1. To evaluate the extent to which people standard of living fall due to job losses.
2. To measure the extent to which peoples saving’s deplete due to job losses.
3. To examine the impact of sudden loss of income on the individual’s standard of living.
4. To evaluate the effects of mauling areas of credit on individuals social life.
5. To examine the level of support he gets from family members and society at large.
1.4 RESEARCH QUESTIONS
The following research questions will guild this study.
1. What is the relationship between the Standard of living of the individual and job losses?
2. How the previous savings of the affected individual deplete with job loss?
3. What is the impact of sudden loss of income on the individual’s standard of living?
4. How does the individual cope with mounting areas of credit after a job loss?
5. What is the institutional support programme aimed at mitigating the hardship suffered by the individual in the event of job loss?
1.5 STATEMENT OF HYPOTHESIS
The following hypotheses will guild this study.
H01: There is no significance relationship between job loss and standard of living of the affected individuals.
H02: The previous savings of the affected individual does not deplete due to job loss.
H03: The sudden loss of income does not affect individual’s standard of living.
Ho4: There is no significant relationship between individual coping with mounting areas of credit and job loss
H05: The institutional support programmes does not mitigate the hardship suffered by the individual in the event of job loss.
1.6 SIGNIFICANCE OF THE STUDY
This research work will be of help both private and public sector and also profit and nonprofit sector on how to manage their human resource and their budget planning finally this research will be at benefit to economic planners, government will also use the result of the data collected to make plans for employment and national budget. The future leader and researcher will equally derive much from the some of the suggestions and findings made here, then continue where I, the researcher stopped.
1.7 SCOPE AND LIMITATION OF THE STUDY
This research work is limited to Imo state in particular in the south-east geo-political zone in Nigeria. It was carried out from settled firms in the state both private and public to know how job losses affect the individuals living of the affected individual.
Limitation: There were lot constraints in the gathering of information for this research work, but the major constraint is as follows:
Time: In respect to the theoretical and practical work, the time allowed for this project was limited resides these was carried out with other academic assignment.
Finance and High Transportation: Due to problem of finance and high transparent I could not be able to carry my research with easy as was planned.
1.8 DEFINITION OF TERMS
The general aim of having these terms defined is to enable the reader to know the measuring of these words if by any means he/she do not know them before with regard to this research work, and a situation where reader have not come across any of them before, it intended to be immense help.
1. Small Scale Business: Oxford paper back (1979) defined it as an industry which can be carried act in the home in pre-colonial Nigeria, according to Ejifor P. It is a relative, turn, because, what is regarded as small scale business by a person means large scale business to another person. The Nigeria bank of commerce and industries (NBCI) identifies purpose of its revolving it as these investing not more than #500,000 excluding the cost of the law but including work capital. Nevertheless, the banks official definition since 1985 has been firms whose capital cost does not exceed (750,000) including working capital but excluding leads.
2. Job Loss: It is a state of been unemployed, one who has no work to regardless of his/her strength and qualification.
3. Entrepreneur: It is defined as an individual who has the ability to seed and evaluate business opportunities gathering the necessary resource to take advantage of them and initiate appropriate actions to ensure success. This could also seem as one who undertakes an enterprise example contractor, employer.
4. Entrepreneurship: Is the willingness and ability of an individual’s to indent and successfully carryout. Investment opportunities in an environment it is also the process of creating something new with value by devoting the necessary time and efforts, assuming the accompanying financial, physical and social risks and receiving the resulting rewards of monetary and personal satisfaction and independence.
5. Youth Development: Is a process that prepares a young person to meet the challenges of adolescence and adulthood and achieve his or her full potential.
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Impact Of Job Losses On Standard Of Living:
The impact of job losses on the standard of living is a complex and multifaceted issue that can vary depending on various factors, including the overall economic context, the social safety net in place, and individual circumstances. Here, I’ll provide a critical assessment of the impact of job losses on the standard of living:
Negative Impact:
- Income Loss: Job loss often leads to an immediate reduction in income, which can have direct and substantial effects on a person’s or a family’s ability to meet their basic needs. This can result in difficulties paying for housing, utilities, food, healthcare, and education.
- Reduced Consumer Spending: Job losses can contribute to a decrease in consumer spending, which in turn can lead to economic slowdowns or recessions. When people lose their jobs, they tend to cut back on non-essential expenses, negatively affecting businesses and the overall economy.
- Health and Well-being: Unemployment is associated with increased stress, anxiety, and depression. The loss of a job can lead to feelings of worthlessness, social isolation, and deteriorating mental and physical health. People without stable employment may also face challenges accessing healthcare and other essential services.
- Skill Erosion: Prolonged unemployment can result in a loss of skills and industry-specific knowledge, making it difficult for individuals to re-enter the workforce or find comparable employment opportunities. This can have long-term implications for career prospects and earning potential.
Mixed Impact:
- Career Disruption: While job loss can have negative effects on one’s career, it can also be an opportunity for individuals to reassess their goals and make changes that align better with their interests and skills. Some may use the opportunity to pursue further education, training, or even entrepreneurship.
- Labor Market Dynamics: In some cases, job losses can lead to shifts in labor market dynamics. Industries experiencing layoffs might be oversaturated, while new industries or sectors might be experiencing growth. For some individuals, this could open up new avenues for employment.
Positive Impact:
- Work-Life Balance: In certain situations, job loss can provide individuals with the chance to reevaluate their work-life balance. Some might find new, less demanding forms of employment that allow for more time with family, pursuing hobbies, or engaging in community activities.
- Innovation and Entrepreneurship: Job losses can inspire individuals to start their own businesses, fostering innovation and contributing to economic growth. This can be particularly true in times of economic uncertainty when traditional employment opportunities are limited.
Government Policies and Social Safety Nets:
The impact of job losses on the standard of living can be mitigated by effective government policies and robust social safety nets. Unemployment benefits, job retraining programs, and affordable healthcare can provide a cushion for those who have lost their jobs, helping them maintain a certain level of standard of living while they transition to new employment.
In conclusion, job losses can have significant negative effects on the standard of living, leading to income loss, reduced consumer spending, and adverse impacts on health and well-being. However, the overall impact is not solely negative; it can also spur personal growth, career shifts, and innovation. Effective government policies and social safety nets are crucial in minimizing the adverse effects of job losses and helping individuals and families navigate through challenging times.