INFORMAL SECTOR AND EMPLOYMENT GENERATION IN NIGERIA. AN EXPERIENCE FROM THE ILORIN METROPOLIS
Abstract
Worldwide, the concept of the informal sector has been applied to analyze the employment situation and policy options in most developing countries. A large of the economically active population of these countries finds an income-generating source in economic activities outside the formal or modern sector of the economy. So, the study assessed the impact of the informal sector on the employment generation in Nigeria with an emphasis on the Ilorin metropolis. Then, the sample size of the study was 250, while a properly structured questionnaire was used for the collection of data. Percentages and tables were employed as descriptive statistics, and regression analysis was utilized to test the hypotheses of the research. Results of the study indicated a positive significant impact of the informal sector on: (i) job creation in the selected small-scale ventures; and (ii) employment origination in the selected medium-scale enterprises in the Ilorin metropolis. It was concluded that there was a positive significant impact of the informal sector on the employment generation in Nigeria. The study then recommended government should develop policy frameworks for small and medium-sized enterprises that focus on legal and regulatory circumstances, as well as capacity building. This is to be able to improve the business environment and increase its competitiveness while also promoting the private sector.
Keywords: Economic Growth; Income Generation; Informal Sector, Job Creation,
Unemployment.
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