Nigeria’s Unemployment Rate Climbs to 5.3%

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Nigeria’s unemployment rate has grown in Q1 of 2024 by 5.3% compared to 4.1% in the corresponding period of 2023.

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This is according to data released by Labour Force Survey Report published by the National Bureau of Statistics (NBS).

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According to the report, the unemployment rate increased to 5.3% from the 5.0% recorded in Q3 2023.

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A breakdown by gender revealed that unemployment among men stood at 4.3%, while for women, it was notably higher at 6.2%.

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In terms of location, urban unemployment reached 6.0%, while rural areas experienced a lower rate of 4.3% during the same period.

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The report also provided insights into youth unemployment, noting that the rate for young Nigerians dropped slightly to 8.4% in Q1 2024 from 8.6% in Q3 2023.

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When examined by educational qualifications, unemployment rates varied: individuals with post-graduate degrees had a relatively low rate of 2.0%, those with post-secondary education faced a higher rate at 9.0%, secondary school graduates saw a rate of 6.9%, and those with only primary education had an unemployment rate of 4.0%.

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In terms of underemployment, the report showed a decline. Underemployment refers to individuals working fewer than 40 hours a week but willing and able to work additional hours.

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The underemployment rate dropped to 10.9% in Q1 2024, down from 12.2% in Q1 2023. The gender breakdown for underemployment showed that 8.5% of men and 12.5% of women were affected. By residence, the underemployment rate was 9.7% in urban areas and 11.8% in rural areas.

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Looking at employment figures for working-age Nigerians, the NBS noted that 73.2% of the country’s working-age population was employed in Q1 2024, a slight decline from 75.6% in Q3 2023.

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The employment-to-population ratio, which measures the percentage of the working-age population that is employed, stood at 74.2% for men and 72.3% for women. The report also highlighted that the ratio was lower in urban areas (69.5%) compared to rural areas (78.9%).

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Additionally, self-employment figures showed a slight decline, with 84% of Nigerians engaged in self-employment in Q1 2024, down from 86% in Q1 2023. However, the proportion of employed individuals working primarily as employees rose to 16.0% in Q1 2024, up from 12.7% in Q3 2023.

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Self-employment remained more common among women (87.9%) compared to men (79.9%), and was particularly high in rural areas (91.9%) compared to urban regions (78.2%).