THE ROLE OF THE INFORMAL SECTOR IN UNEMPLOYMENT REDUCTION IN NIGERIA

: This study focused on the role of the informal sector in unemployment reduction in Delta State vis-a-vis Ethiope East local government area. Unemployment has been a hydra problem in the country, and the youths happen to be the most vulnerable cum volatile among the population of the country. In that regard, there have been incessant calls by various top government functionaries, economic experts, international organizations, bureaucrats, and academics, for a diversification of the economy but to no avail. One sector that has not been given full support by the Nigerian government is the informal sector. Failure to focus on this sector and at least put in some measures so as to ensure that development occurs in this sector of the economy, has to some extent been responsible for chronic unemployment in the state. In ensuring that objectives of this research are attained, the secondary data were resorted to in the research. The Keynesian unemployment theory guided our work. This theory is known as the cyclical or deficient-demand unemployment. It is of the view that, unemployment happens when there are not enough aggregate demand in the economy to provide job for everyone who wishes to work. The following findings were obtained: that failure to encourage small and medium scale enterprises, skill acquisition and what have you, is a cause of rise in unemployment rate. That the informal sector development is a veritable source of employment for the unemployed in the country, as it gives these persons some level of leverage. That failure to industrialize the economy and create room for economic diversification is to some extent responsible for Nigeria's unemployment brouhaha. That unemployment in Nigeria has continued to be on the increase despite the abundant human and natural resources available in the country. In conclusion, the following recommendations were suggested: that there should be the introduction of a progressive tax system in the country stemming from the Federal down to local government areas. That the mode of production in the country should be transformed from the primitive, subsistence cum crude form, to the production of manufacturing as well as, finished products.