University of Central Punjab

Final Project
Research methods in business
Submitted to : Sir Mohi ud din
Submitted by: Muhammad Asif L1F19BSAF7042
Abrar Ahmad L1F19BSAF0167
Shahid Farooq L1F19BSAF0181
Hamza Akbar L1F19BSAF0107
Asad Riaz L1F19BSAF0147
Table of Contents
Introduction.......................................................................................................................... 3
Importance:........................................................................................................................... 3
Problem Statement............................................................................................................... 4
Research question............................................................................................................... 4
Research Objective.............................................................................................................. 4
Literature View...................................................................................................................... 4
Hypotheses........................................................................................................................... 5
Theoretical Framework........................................................................................................5
Data Collection..................................................................................................................... 6
Nature of study:................................................................................................................ 6
Population of study:......................................................................................................... 6
Target population:............................................................................................................ 6
Sample:.............................................................................................................................. 6
Sampling technique:.........................................................................................................7
Instrument:........................................................................................................................ 7
Questionnaire................................................................................................................ 7
Source of data:.................................................................................................................. 9
Data Analysis........................................................................................................................ 9
Reliability........................................................................................................................... 9
Descriptives...................................................................................................................... 9
Correlations..................................................................................................................... 10
Regression...................................................................................................................... 11
Conclusion.......................................................................................................................... 12
Bibliography....................................................................................................................... 12
Education Level and Employability skills impacts unemployment
among fresh graduates

Introduction
Unemployment is known as the amount of persons who would be Prepared to work for the
prevailing wages in society but are already now unemployed. Long-term economic growth
capability decreased by unemployment (Clark 2003).
Large numbers of university graduates are jobless and otherwise divert their knowledge and
skill toward alteration and promoting the growth of the economy in danger of losing skills
and talent. Expanding the level of unemployment will eventually put youth in significant
social and psychological suffering. Unemployment of youth in Pakistan prevailed at 8.54%
during 2018-2019(ILO,2019). Due to rising unemployment from rural to urban migration.
This appearance is a significant review as far as the picture of the education system in
Pakistan in addition to discourage Pakistan’s goal to become a growth of economy country by
the end of decade (Shamsuddin et al,2013).

Importance:
In this era the rising trend of increasing unemployment rate of fresh graduates is very
disappointing. Now a days the unemployment graduates rate is increasing at high level to a
very upsetting situation and also affecting the economic growth of country. This is because of
many factors which are affecting and increasing the unemployment rate in our country. In
this research paper we will discuss the factors which are affecting the unemployment rate.
The important cause which is affecting the unemployment of graduates rate is shortage of
technical and employment skills. Every graduate should have complete knowledge about job
and working skills to get job without any recommendations and having a valuable connection
to get job easily. A recommendation and contact only can give a job to graduate.
A reason of unemployment of fresh graduates is that they don’t have good experience. Now
a days it is very difficult for the graduate to get job without any experience but it becomes
impossible and this may cause of not having job and delay in getting job. So for that purpose
students should attend training program for getting job and experience. Most of companies
hires only experienced person so getting experience is necessary for job.
Importance of this research paper is that unemployment in fresh graduates can be reduced by
training them about the employability skills and working experience related their studies.
Government and universities should provide the training about their study related jobs which
is the best way of getting a good experience. Government should also provide vacancies in
Governmental institutions and other sector where graduate can do their job which in results of
increasing economic development in country.

Problem Statement
Educational level and employability skills Influencing Unemployment among Fresh
Graduates (Mohammad Imtiaz Hossain 2018). Unemployment results in financial problems
i.e poverty, crimes, murders, theft depression, anxiety, family tensions and social isolation
(Maqbool, Mahmood, sattar and bhalli 2013. Unemployment reduces self-esteem,
nervousness and mental health problems (Durkan,et al,2011).Government failure as result of
high unemployment which disproportionately affects urban educated residents, taxes and
revenue collection are poor in Pakistan(tasci & tancil,2005).

Research question

1. Is educational level impacting unemployment among fresh graduates?

Research Objective

1. To study the impact of Unemployment among fresh Graduates in Pakistan.

Literature View
There is a large amount of consequences of life with jobless individuals its poverty, stress and
anxiety related to mental health problem and restrict the happiness the negative relationship
between youth unemployment and labour market. Every year millions of employees enter in
job market and people lose their desired job due to have without any skills (Giugni and
Lorenzini 2010).
Lack of high education system in young people being one. Youngest people without having
any expertise is likely to stay unemployed is known structural unemployment.
Unemployment is high due to immense rural to urban areas. The quality of education system
and greater management to decline the unemployment pressure (Khawaja Asif Mehmood
2021).
Problem of youth unemployment is becoming clearly long-term in Pakistan. A large number
of students graduate with various diplomas and professional qualifications and the youngest
people can find their suitable job and area of interest in our qualification. Economic problem
is also considered as the youth unemployment. The entire job market controlling the
increased unemployment among youth unemployment due to economic and political
environment (Khan and Yousaf 2013).
The recent research has discovered that limited understanding of English language and
communication skills, lack of employability skills, they are too selective about the job and at
one time, Expecting the high salary is the major cause of unemployment among fresh
graducates.

Hypotheses
 If there is an increase in employability skills then the unemployment among fresh
graduates will decrease.
 A change in educational level will give a significant change to unemployment among
fresh graduates.
 There is an inverse relationship between employability skills, educational level and
unemployment among fresh graduates.

Theoretical Framework

Independent Variables
Educational level and Employability skills
Dependent Variables
Unemployment among fresh graduates

 Educational level and employability skills impacting on unemployment among fresh

Unemployment
among fresh
raduated

Employability
Skills

Data Collection
Nature of study:
This research paper is quantitative approach which is based on the self administered survey.

Population of study:
Population of study for this research paper is the fresh graduate from universities and colleges
in our country. But main population of study was the area of Lahore Punjab Pakistan.

Target population:
Targeted population for this research paper is the fresh graduate of universities students i.e.
University of Central Punjab, University of Management and Technology, University of
Lahore and Superior University students.

Sample:
Department selected randomly from the Universities to get answer of questionnaires.
Department which selected are BSAF,BBA,BSIT and BSCS.
Sampling technique:
Sampling technique used in this research paper is Probability sampling. In research paper
randomly students are selected for the questionnaires filling.

Instrument:
In this research paper we have used questionnaire in hard copy form and provides to students
for getting data. The questions was closed ended which were provided to the students for
getting data.

Questionnaire

Independent Variables: Education Level and Employability Skills,

Part 2
Please read the following statements and Tick Mark the response that closely represents
your opinion. The statements are anchored on the following 5 point Likert Scale:
1 - Strongly Disagree: 2 - Disagree: 3 - Neutral: 4 - Agree: 5 – Strongly Agree:
Educational Level
Sr. # Statements S. Disagree Neutra Agre S. Agree
Disagree l e
1 Do you think that you are highly
knowledgeable in your field
2 The syllabus studies are unrelated
to job industry
3 I am not qualified enough for the
jobs I am seeking
4 Too many graduates are applying
 for the job available.

Employability skills
Sr. # Statements S. Disagree Neutra Agre S. Agree
Disagree l e
1 I don't have the relevant working
skills
2 I have poor command in English
language
3 I have poor communication skills
4 I am lacking of problem solving
skills
5 m lacking of leadership qualities

Unemployment
Sr. # Statements S. Disagree Neutra Agre S. Agree
Disagree l e
1 Unemployment affects the Socio-
economics status of family
2 Unemployment affects family
relationship negatively
3 Employed person have higher
status than unemployed
4 Unemployment leads to poor
mental health
5 Unemployment peoples are
usually drugs user

Source of data:
Our source of data collection was hard form of questionnaire provides to students of
Universities above mentioned departments.
Data Analysis

Reliability

Reliability Statistics
Cronbach's Alpha N of Items
.614 3
Interpretation
In reliability test, the value of Cronbach’s Alpha should be in between 0.6 to 0.9 and in our
research the value is 0.614 which lies in range.

Descriptives

Descriptive Statistics
N Mean Std. Deviation
Educational.level 30 3.0667 .56832
Employability.skills 30 3.1800 .53136
Unemployment 30 3.2333 .33253
Valid N (listwise) 30

Interpretation:

 We apply the descriptive statistics test by which we get some results that there were
30 respondents from whom the data is collected. It shows the mean and standard
deviation of the variables.

Correlations
Educational.level Employability.skills Unemployment
Educational.level Pearson 1
Correlation
Sig. (2-tailed)
N 30
Employability.skills Pearson .421* 1
Correlation
Sig. (2-tailed) .020
N 30 30
Unemployment Pearson -.015 -.667* 1
Correlation
Sig. (2-tailed) .030 0.001
N 30 30 30
*. Correlation is significant at the 0.05 level (2-tailed).
**. Correlation is significant at the 0.01 level (2-tailed).

Interpretation:

By applying bivariate correlation test, we get to know about the correlations among variables.
In our test, there is moderately positive correlation between educational level and
employability skills because the value is 0.421 it means both variables move in same
direction.
There is moderate negative correlation between unemployment and employability skills
because the value is -0.667 it means both variables move in opposite direction.

There is also negative correlation between unemployment and educational level because the
value is -0.015 it means both variables move in opposite direction but in low degree.

Regression

Model Summaryb
Mode
l R R Square Adjusted R Square Std. Error of the Estimate Durbin-Watson
1 .729a .532 .497 .23588 2.346
a. Predictors: (Constant), Employability.skills, Educational.level
b. Dependent Variable: Unemployment
Interpretation:
By applying regression test, we get the R square value which is 0.532 it means educational
level and employability skills ( independent variables) moderately affect to
unemployment( Dependent variable) so 53.2% change in unemployment due to educational
level and employability skills.
We get the Durbin-Watson value 2.346 which is acceptable, it explains the association in two
items is called auto-correlation.

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 1.704 2 .852 15.316 0.001b
Residual 1.502 27 .056
Total 3.207 29
a. Dependent Variable: Unemployment
b. Predictors: (Constant), Employability.skills, Educational.level

Interpretation:
Th significant value must be less than 0.05. In our research the value is 0.001 means the
model is fit and it is significantly affect to the model.

Coefficientsa
Unstandardized Standardized Collinearity
Coefficients Coefficients Statistics
Model B Std. Error Beta T Sig. Tolerance VIF
1 (Constant) 2.214 .300 7.387 0.001
Educational.level -.189 .085 -.323 - .034 .822 1.216
2.227
Employability.skills -.503 .091 .804 5.533 0.001 .822 1.216
a. Dependent Variable: Unemployment

Interpretation:
In the unstandardized coefficeints, the value of Beta of employability skills is -0.503 it
means that one unit increase in employability skills affect 0.503 decrease in unemployment
so negative relation between them.
The value of Beta of educational level is is -0.189 it means that one unit increase in
educational level affect 0.189 decrease in unemployment so also negative relation between
them.
In the standardized coefficeints, the value of Beta of employability skills is higher i.e 0.804
as compared to educational level i.e -0.323 it means that employability skills has higher
affect on unemployment as compared to educational level.
VIF
VIF tells us the relationship between independent variables . If the association occurs
between independent variables then issue of multiculanarity. The value of VIF should be less
than 10. In our research, the value is 1.216 it means multiculanarity occurs but ignorable.

Conclusion
This research has highlighted the variables that impact on unemployment among fresh
graduates in Pakistan. Thereby, the objective of this study is achieved. This study concluded
that effective skills training will produce graduates who are educated and skilful before
entering the working field. Employability skills are also needed as well as education. It is
concluded that there is an inverse relationship between educational level and unemployment
and also inverse relationship between employability skills and unemployment among fresh
graduates.

Bibliography
References:
(Qayyum & Siddiqui, 2007)
Ahmad, A., & Khan, F. (2018). Investigating the determinants of youth unemployment in Pakistan.
Pakistan Journal of Humanities & Social Science Research, 1(1), 1-12.
Bagchi, A., & Paul, J. A. (2018). Youth unemployment and terrorism in the MENAP (Middle East,
North Africa, Afghanistan, and Pakistan) region. Socio-Economic Planning Sciences, 64, 9-20.
Maqbool, M. S., Mahmood, T., Sattar, A., & Bhalli, M. (2013). Determinants of unemployment:
Empirical evidences from Pakistan. Pakistan Economic and Social Review, 191-208.
Qayyum, W., & Siddiqui, R. (2007). Causes of youth unemployment in Pakistan [with comments]. The
Pakistan Development Review, 611-621.
Qazi, W., Raza, S. A., & Sharif, A. (2017). Higher education development and unemployment in
Pakistan: Evidence from structural break testing. Global Business Review, 18(5), 1089-1110.

(Ahmad & Khan, 2018; Bagchi & Paul, 2018; Maqbool, Mahmood, Sattar, & Bhalli, 2013;
Qazi, Raza, & Sharif, 2017)