The Role of Private Sector in Reducing Youth Unemployment: A Case of Dodoma Region, Tanzania

Abstract

The private sector has become active to reduce world poverty. Despite the most recent Gross Domestic Product [GDP] upturn, which ended in the second half of 2018, jobless rates remained comparatively stable in the majority of African nations. While North Africa's unemployment rate was 10.0% and 12.8%, respectively, Sub-Saharan Africa's overall unemployment rate was 7.4% in 2010 and 7.6% in 2016. Although various action have been taken, the biggest problem in the world right now is youth unemployment. The global unemployment rate was 6.2% in 2018, down from 6.3% in 2014, but still much higher than the figure of 5.6% in 2019. Therefore, the study aimed to explore the role of private sector in reducing youth unemployment in Dodoma Region. The study was guided by Karl Marx’s Unemployment Theory, Karl Marx believed that major unemployment crises were to be expected because unemployment was a natural byproduct of the unsteady capitalism system. A case study research design was used and targeted population consisted of young people without jobs and those who are working and work in the private sector, management of businesses, and the Ministry of Trade, Industries, and Market in Dodoma. This research employed a sample size of 150 respondents. Using both qualitative and quantitative research approach the primary data was collected using questionnaire and interview guide and secondary data was collected using documentary review. The data was analyzed, processed, and loaded into SPSS version 16.0 that is statistical tool quantitative research, content and structural functional analysis approaches were used to examine the acquired qualitative data. The study found out that the constrains for the youth’s unemployment in private sector are lack of education, entrepreneurship, experience, lack of vocational training skills, as well as obstacles that deterred the private sector from contributing to youth unemployment including lack of capital, skills, market, government policies and insufficient finances. This study concluded that the government needs to support the private sector so that more employment opportunities can be created because the government on its own cannot create the big number of employment opportunity which can cover all the youth. The researcher recommended that the government should encourage various businesses to invest in the country as young people will benefit by getting job opportunities. The ministry in charge of employment should continue to encourage young people to work for themselves rather than wait to be hired by the government.