THE ECONOMIC IMPACT OF URBAN YOUTH UNEMPLOYMENT THE CASE OF WOLKITE TOWN, CENTERAL ETHIOPIA

Abstract

The objective of this study is Economic impact of urban youth unemployment the case of Wolkite town,central Ethiopia.A multi-stage sampling technique was used to select 350 respondentsandpurposive sampling techniques were used. This study used both primary and secondary data and quantitative data obtained in addition, key informants interview were used for qualitative information. Both descriptive and econometric models were used to analyze the collected data.For the econometric analysis binary logit model were used to identify determinates of employment status and .to address the effect unemployment.The survey results show that 54.3% and 45.7% respondents were unemployed and employed respondents respectively.The Propensity score matching method was applied to address the economic impact of youth unemployment.Furthermore, based on the results of logit model, sex of respondents, educational in status, marital status respondents, migration status, access to training, access to credit, access to job opportunities,access to land, are significant and they affect the unemployment status of respondents. Causes of unemployment in study area; ruralurban migrants, poor education system, urban-urban migration ,high population growth, and,lack of training and skill, lack of investment in the town and lack of industrial establishment, and preferring better job. The consequence of the unemployment are impacts on consumption expenditure, Therefore, the future intervention should focus to decrease unemployment in the study area government giving awareness to active age population and female how to create self-employment and, giving training access, and increasing investment activity in the town andtechnical and vocational training programs should focus on producing qualified graduates with market demanded skills and government provide the access to land for youth they invest in the land .