Determinants of Youth Unemployment: The Case of Areka Town, Wolaita Zone, Ethiopia

Loha Menta


Presently days, the development of youth unemployment is one of the basic financial issues confronting Ethiopia by and large and the study area specifically. Nonetheless, this isn’t thought about the elements fueling youth unemployment in the examination zone. Considering this issue, this investigation is directed with destinations of distinguishing factors influencing youth unemployment, in Areka town of Wolaita Zone, Ethiopia. The research focused on the quantitative data collection through household survey. The Multi-stage sampling design was used. In the 1st stage, Areka town was chosen purposively and in the 2nd stage 120 rural youths (18-34 age groups) were selected from Four Kebeles by using simple random sampling method. The primary data were collected from the 120 youths with the help of the constructed Interview schedule. The descriptive and inferential statistics along with Binary logit model were used to analyze the data.  Among all the respondents, 20.83 percent were employed, while 79.17 percent were unemployed at the hour of the examination. The econometric model investigation showed that Household Income, Job preference, Access to credit, Access to training and Cooperative membership have significant impact on Youth unemployment. Among this Job preference at 1% significant level, and the Household Income, Access to Credit, Access to training and Cooperative Membership  were at 5% significant level. Based on the discoveries of the examination: Provide accommodative credit access, improve wages of individual families and certain regions ought to be utilized specifically.

Keywords: Unemployment status, Youth, Binary Logit Model, Inferential statistics, Job opportunities, Household Income, Credit, Training

DOI: 10.7176/JESD/11-17-05

Publication date:September 30th 2020

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