Nigeria’s Unemployment Rate Rises to 5.3% in Q1 2024, NBS Reports

Nigeria’s unemployment rate has increased to 5.3% in the first quarter of 2024, up by 1.2 percentage points from the 4.1% recorded in Q1 2023, according to the latest Nigeria Labour Force Survey Report released by the National Bureau of Statistics (NBS).

The NBS stated that this rise was driven by factors such as economic challenges and varying employment conditions across the country.

The report also highlighted disparities based on gender and location, noting that unemployment was higher among women, at 6.2%, compared to 4.3% among men. Similarly, unemployment in urban areas stood at 6.0%, while rural areas recorded a lower rate of 4.3%.

Youth Unemployment Sees a Slight Decline

The report pointed out a small improvement in youth unemployment, which stood at 8.4% in Q1 2024, down from 8.6% in Q3 2023. The bureau attributed this to gradual improvements in youth employment schemes and entrepreneurial activities across various sectors.

Employment Based on Educational Attainment

The unemployment rate also varied based on educational attainment. Those with post-graduate education saw the lowest unemployment rate at 2.0%, while individuals with post-secondary education had a much higher unemployment rate of 9.0%. Those with secondary and primary education recorded unemployment rates of 6.9% and 4.0%, respectively.

Underemployment Declines to 10.9%

Underemployment, defined as the share of the employed population working less than 40 hours per week but willing to work more, also saw a decline. The share of underemployed Nigerians fell to 10.9% in Q1 2024, down from 12.2% in Q1 2023. The report revealed that underemployment was higher among women at 12.5%, compared to 8.5% among men. Urban areas had a lower underemployment rate of 9.7%, while rural areas recorded a rate of 11.8%.

Employment-to-Population Ratio Drops

Nigeria’s employment-to-population ratio, which measures the proportion of the working-age population that is employed, dropped to 73.2% in Q1 2024, down from 75.6% in Q3 2023. The ratio was higher in rural areas (78.9%) compared to urban areas (69.5%).

Self-Employment Rate Sees Slight Decline

The share of Nigerians engaged in self-employment fell from 86% in Q1 2023 to 84% in Q1 2024. The decline in self-employment was more significant among men (79.9%) than women (87.9%). In rural areas, self-employment remained higher at 91.9%, compared to 78.2% in urban areas.

The NBS concluded that although Nigeria’s labour market continues to face challenges, the modest decline in underemployment and youth unemployment indicates some progress in addressing the country’s employment issues.