Determinants of Urban Youth Unemployment in Borena Zone: The Case of Yabalo Town

Abstract

Youth unemployment in Ethiopia presents a significant challenge to national development, with urban areas experiencing higher rates of unemployment than rural ones. This study examines the determinants of urban youth unemployment in Yabalo, employing both qualitative and quantitative research methodologies. Researchers used descriptive and binary logistic econometric models to analyze the data. During the survey, the maximum number of respondents remained unemployed; of the total sample of 396 respondents, 224 (56.57 percent) were unemployed, and 172 (43.43 percent) were employed. Binary logistic model estimation results revealed that age, gender, marital status, migration status, social network, and access to credit positively affected unemployment, whereas education and work experience negatively affected unemployment. The study also confirmed that unemployment leads youth to dependency, stress, indebtedness, and crime. Although the government prioritizes youth in its programs, its efforts have a limited impact on changing the urban youth unemployment status. To lower youth unemployment, the government and city administration should encourage the private sector, expand micro and small enterprises (MSEs), encourage female participation and empowerment, and facilitate drought response strategies.