Leadership is at the heart of public sector governance, and it is vital to the overall development of a nation as well as the welfare of the citizens (Michael, 2015). In addition to this, Lawal and Tobi (2006) also stated, the quality of leadership affects the pace of development in any country. Since it implies that unemployment is among the lack of good governance indicator, consequently, effective leadership results in organizational excellence i.e. interplaying one another. However, unemployment is one of the situational challenging agenda and problem of good governance in which leadership quality is tested as well as experienced in the work world round the globe.
The recent global economic crisis has worsened unemployment, the implications of which are starting to negatively affect both young people and society as a whole (Leach 2013; Gratton 2013; as cited in Mashau and Houghton, 2015). Unemployment has exposed youths to various challenges such as loss of status, loss of prestige and economic strength. Lack of self-confidence, infliction of psychological injury as a result of the breakdown in social contacts and isolation from the world of work, loss of responsibility, identity and respect, loss of purchasing power, to mention a few (Omotosho et al., 2016).
Soylu (2018) explain that unemployment arises from the economic structure of a country, and it arises from different reasons depending on whether it is a developed or underdeveloped country. The reason for unemployment in underdeveloped countries is capital inadequacy, while in developed countries technological progress is the reason (Yilmaz, 2005; as cited in Soylu, 2018).
In addition to that residual unemployment is caused by personal factors such as old age, physical or mental disability, poor work attitude and inadequately training. Technological Unemployment is caused by changes in the techniques of production. Technological changes are taking place constantly, leading to the increased mechanization of the production process. This naturally results in the displacement of labor and finally causing unemployment (Oladele, et al 2011; as cited in Uddin et al., 2013).
Dula and Degefa (2017) explained that the economy of many urban areas is not well developed to provide adequate employment opportunities to both migrants and non-migrants. Unemployment is a critical socio-economic problem in urban Ethiopia (Tolossa and Etana, 2014).
The International Labor Organization (ILO) defines the unemployed as numbers of the economically active population who are without work but available for and seeking work, including people who have lost jobs and those who have voluntarily left work (World Bank, 1998). According to Fajana (2000), unemployment refers to a situation where people who are willing and capable of working are unable to find suitable paid employment. It is one of the macro-economic problems which every responsible government is expected to monitor and regulate. The higher would be the poverty level and associated welfare challenges (as cited in Uddin et al., 2013).
The rate of unemployment in Ethiopia urban areas was 16.5 percent in 2013 (CSA, 2014). Obviously, urban residents mainly depend on purchased goods. Yet, sizeable people do not have adequate income to purchase consumption goods (Cohen and Garrett, 2010). Consequently, urban areas are trapped with similar problems of food insecurity and poverty (Tolossa, 2010; Birhane et al., 2014).
This is due to the small portion of urban work forces are engaged in low paid and most of them are following families businesses as well as the absence of dynamic private sectors are considered. Fitsum Dechasa Kibret (2014) elaborated that though there some improvements; the country yet faces high joblessness and sluggish job creation in urban areas. As in many other developing countries, the urban labor market in Ethiopia is typically characterized by huge inefficiency and underdevelopment.
Labor supply by far exceeds labor demand and many men and women are looking for job but unable to find and stay unemployed. In urban Ethiopia the labor force grows with an increasing proportion while the opportunity of employment is inadequate to absorb the labor market entrants, and thus, challenges of unemployment, specially, TVET graduated unemployment has become surplus market labour forces due to more priority has been given for graduate of higher institutions.
In General, Ethiopia is predominantly an agrarian economy so that agro-processing, mechanization and other technological innovations pertaining to industrial development are the major focus area of technology so long as TVET and MSE Development are being harmonized to carry the burden that the country is intended to introduce new technologies with, particularly, level graduated TVET trainees. This entails that leadership is responsible for such cumbersome agendas that loading a country down is to be resolved, and cognizant to this, effective leadership to reduce unemployment might be attracting leaders to tackle such gaps with reputations.
Thus, the issue is whether effective leadership contributes towards substantial growth in job creation in urban areas to minimize new labor market entrants. This calls for a careful study of the current urban unemployment situation, and efforts being done towards employment creation as well as the challenges towards those efforts. Therefore, the study intended to add contribution to the existing knowledge of the previous efforts in those issues related to TVETs graduate unemployment neglected in urban Ethiopia that has been expected to deliver back in manufacturing sectors.
However, no any similar studies to my topic of study have been undertaken previously by researchers at the study area, the researcher will examine the relation between the two important variables of Leadership role and minimizing Unemployment situation as much as possible.
Around 35 million people of the Ethiopian work force are characterized by low skill levels and very low average educational attainment. Only 10% of the urban population has post-secondary school education. As a consequence, 75% of the workforce is concentrated in low skill employment sectors such as commerce, services and elementary occupations. Less than half of the urban workforce is engaged in wage employment. A significant portion of the urban workforce works for unpaid family business.
More than 40% are self-employed in the informal economy, most of which live on the edge of poverty. Minimizing unemployment and getting success of economic growth are of paramount priorities in economy in both developed and developing country. From the Ethiopia context, trends of implementing the second poverty reduction strategy paper calls for the country has to raise its average economic growth rate to 8% annually in order to achieve the Millennium Development Goals (MoE, 2008).
Nowadays unemployment is the upheaval temptation for our world’s leadership so that it became one of the most common inflammable agenda that leaders ping-pong it at contextual and international level. But, still unemployment is flying more than the pace of effective leadership process. To reverse the issue, the government prepared education policy about 80% of secondary education students should join TVET program, whereas 20% of them might be prepared to join higher institutions. From this reality more market labour force will be incubated within every year for employment with level graduated TVET program so that bulky job seekers to be expected overflow.
According to MoY (2004) youth as to include part of the society who are between 15-29 years in order to mobilize and utilize the potential capacities and development purposes. But for the purpose of trainees graduated from TVET program, the researcher will use only those graduated with levels and living currently in Shambu Town. In urban Ethiopia, according to (MOLSA, 2016) job seekers by age from (July 8/2016-July 7/2017) 20-24 group tends to 24.81%, 25-29 group tends to 22.03% and above 30 group tends to 7.11%.
Similarly, from the total 2,248,137 registered job seekers by educational level, Elementary Ed.(1-8) accounts for 24.94%, Secondary Ed.(9-10) accounts for 16.48%, Technical and Vocational accounts for 13.35%, whereas First degree accounts for 4.36%. Misgwa and Kipesha (2013) delve that most of the developing countries the age 15 to 24 is school age where most of the youth are still gaining knowledge necessary for the labor market. Therefore, still emerging job seekers are those with age and education level, but big challenges of unemployment are those at age above 22yrs, and technical and vocation get focused due to their vulnerability to sever prevalence of unemployment.
Therefore, in response to the invading unemployment expected, the government will act on that burdensome with effective policy to overcome the impacts and challenges may encounter through the force thus, turning it to opportunity by creating job. The tendency with unemployment will be a time bomb for developing and developed country unless otherwise managed wisely with effective strategy.
To do so, the micro and small enterprise development and TVET itself should play their strategic roles to minimize unemployment. Though it is believed the key instruments of job creation and to boost economy in urban centers, it is not well done yet accordingly due to the swelling up of labour force surplus after leaving TVET remain unemployed. It holds a strategic place within Ethiopia’s Industrial Development Strategy.