Abstract

This paper summarizes the arguments and counterarguments within the scientific discussion on the issues of unemployment in Ethiopia. The main purpose of the research is to examine the trend and determinants of unemployment in context of the inefficient manner of business in Ethiopia particularly in Mettu Town. The other specific objectives are to examine the current situation and trends of unemployment, to examine socioeconomic characteristics of unemployment and to identify the major factors that are responsible for unemployment in Mettu town of Ethiopia. Systematization of literary sources and approaches for solving the problem has widely been used that indicates that there is a contradictory scalier of unemployment in Ethiopia. The relevance of the decision of this scientific problem is how population growth, urbanization, and higher education increase unemployment in the country during the adoption of new business policy. Investigation of the unemployment topic in Ethiopia in the paper is carried out in the following logical sequence measuring the population growth; urbanization and education, which have an impact on unemployment. Methodological tools of the research methods were comparative analysis using statistical tools and techniques used in years of research 2018-2019. The object of the research are the regions specified systematically because namely they were elaborated. The paper presents the results of an empirical analysis of the unemployment trend and its determinant, which showed that there is a contradictory paradox among parameters. The research empirically confirms and theoretically proves that unemployment, particularly among youth, is creeping ahead in the region because of population growth, rapid urbanization and business inefficiencies as well. The results of the research can be useful for policymakers, academicians and researchers.

Keywords: unemployment, population growth, business characteristics, gender gap, training and capacity development programmes, business policy and business inefficiencies.

JEL Classification: E24, J11, M2, H21.

Cite as: Singh, S. N. (2019). Business Inefficiencies and Youth Unemployment in Ethiopia: A Case Study of Mettu Town. Business Ethics and Leadership, 3(2), 93-106. http://doi.org/10.21272/bel.3(2).93-106.2019.

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