Population Growth and Youth Unemployment in Somalia (1991-2017)

ABSTRACT he purpose of the study was to investigate the relationship between the population growth and youth unemployment in Somalia. The specific objectives of the study were; to examine the long-run relationship, causation, and effect of population growth on youth unemployment rate. The study used a descriptive, correlation and longitudinal design and only employed the Quantitative research approach. L~ie study was carried out using secondary 4ata collected from 1991 to 2017. Augmented Dickey filer (ADF), tests were carried out on the variables of population growth rate and youth unemployment and were found to non-stationary at level but stationary after first difference. ointegration 4 results of Trace and Maximum Eigenvalue findings showed that there is a long run relationship between population growth and youth unemployment rate. Granger causality tests also dicated that population growth causes youth unemployment in Somalia. A regression model ~compassing all variables under study and the results indicated that population growth impacts on unemployment significantly which means that as population growth increases, youth unernployment also increases. This can be seen by observing the p-value of population growth which in is case is 0.0170 which is less than 5% le ~elpf significance. The study concluded that there is a Long n relationship between population growth and youth unemployment because there is Cointegration ~ong Population growth, Gross domestic product, and Gross capital formation and youth aernployrnent rate based on findings which confirm the results got from the first tracet rank test and us that there is a long run relationship among population growth, Gross domestic product, and Gross capital formation and youth unemployment. Furthermore, the study concluded that population growth .s also had a relatively small effect on unemployment in Somalia because population growth does anger Cause youth unemployment rate but Unemployment rate does not granger cause population owth. The study concludes that rapid population growth increases various forms of unemployment in ~rnalia and that the lack of investment in infrastructure and subsidy for sectors with potential for ~ating jobs. The study recommends that Government of Somalia should also improve on sensitization d educating the people on population control through teaching them on birth control measures like wild spacing, invest heavily in the private sector through supporting private investors setting up manufacturing companies to employ youths and acquire them with necessary skilling to sustain them in ë and that it should also create an enabling environment for self-employment, job creation and entrepreneurship.