Nigeria’s unemployment rate has dropped to 4.3% in the second quarter of 2024, according to the latest figures released by the National Bureau of Statistics (NBS).
This marks a notable improvement from the 5.3% recorded in the first quarter of 2024.
The new unemployment rate reflects a positive shift in the country’s economic situation and is expected to boost confidence in both local and foreign investments.
The NBS released the data as part of its Nigeria Labour Force Survey for Q2 2024.
According to the report, the unemployment rate was higher in urban areas at 5.2%, compared to a much lower rate of 2.8% in rural areas.
The report also revealed an encouraging trend: the country’s labour force participation rate increased to 79.5% in Q2 2024, up from 77.3% in the previous quarter.
This increase indicates more Nigerians are joining the workforce, which is a positive indicator for economic growth.
Interestingly, the participation rates between males and females were nearly equal. Males stood at 79.9%, while females were slightly behind at 79.1%.
This balance reflects an increasing level of engagement across both genders, with little disparity in labour market participation.
The employment-to-population ratio also saw an increase in Q2 2024, rising to 76.1% from 73.2% in Q1 2024.
This suggests that more people are not just entering the workforce, but they are also finding employment opportunities.
However, when comparing year-on-year data, the ratio showed a slight decline from 77.1% in Q2 2023.
The NBS also noted a decrease in the combined rate of unemployment and time-related underemployment, falling to 13% in Q2 2024 from 15.3% in the same quarter the previous year.
Although the overall unemployment rate showed a positive reduction, informal employment continues to be high, accounting for 93% of the workforce.
Secondary education graduates were among those most affected by unemployment, with a rate of 7.6% for this group in Q2 2024.
Youth unemployment remains a significant challenge.
The unemployment rate for young people aged 15-24 years stood at 6.5% in Q2 2024, reflecting a persistent struggle for young Nigerians to secure steady work.
Urban unemployment was notably higher than in rural areas, with urban areas reporting 5.2% unemployment compared to 2.8% in rural regions.
This could reflect the increased competition for jobs in cities, where the population is higher, and opportunities may be more concentrated in specific sectors.
Despite these challenges, there was some good news regarding underemployment.
Time-related underemployment, which refers to people working fewer hours than they desire, decreased to 9.2% in Q2 2024 from 10.6% in the previous quarter.
Furthermore, 3.7% of the working-age population was involved in subsistence agriculture, which is often an informal and less stable form of employment.
The youth not engaged in education, employment, or training (NEET) also accounted for a significant percentage of the population, with a NEET rate of 12.5%.
However, the report noted that the NEET rate for females was consistently higher than that for males, continuing a trend seen in previous quarters.
The Nigeria Labour Force Survey (NLFS) is a critical tool for understanding the country’s employment dynamics.
It provides quarterly data on employment, unemployment, and underemployment, offering valuable insights for policymakers, businesses, and the general public.
The NBS emphasized that the NLFS is designed to be in line with international standards, ensuring that Nigeria’s labour market data is comparable on a global scale.
This allows for better monitoring of progress towards national goals and global development commitments, such as those linked to the United Nations Sustainable Development Goals.
The labour force is a key factor in the production of goods and services, making employment statistics vital for economic planning and growth.
It is essential to know not only how many people are working but also the quality and stability of those jobs.
The NBS hopes that the Labour Force Survey will continue to provide important data to guide government policies and decisions aimed at improving the job market.
The overall decline in unemployment to 4.3% offers a promising outlook, but experts agree that further work is needed to address issues like informal employment and youth unemployment.
