DOI: 10.36347/sjebm.2014.v01i10.009

Pages: 505-517

This paper throws up the challenging effect of unemployment on the sustainable existence of the Nigerian state. It reviews the contemporary measures adopted by the Nigeria government to solve the menace of unemployment, which has continually remained unabated. Many of the programs instituted by government to reduce unemployment in Nigeria had been anchored on the traditional (agricultural) and modern (industrial) sectors. The paper goes on to show that many of the unemployed labour force in the country are located and engaged in the informal sector – an emerging sector that sits in the middle of the dual economic conception of modern (industrial) and traditional (agricultural) sectors. A review of the informal sector indicates that it has a very large capacity to create and destroy jobs. Since entry into the sector and exit is free and unrestricted, coupled with its labour intensive production techniques, its capacity to absorb more labour is large. However, the unsustainability of jobs in the sector, which is informed by the character of the informal sector leads to easy job destruction and makes employees in the sector not to see their engagement as employment – thus bourgeoning the mass of unemployed in the country. Arising hence, the paper proffers suggestions that could create sustainable employment in the sector, while repositioning it as an advantage to solve the unemployment problems encountered in Nigeria.