The National Bureau of Statistics (NBS) has reported an increase in Nigeria’s unemployment rate, rising to 5.3% in the first quarter (Q1) of 2024, up from 5.0% in the third quarter (Q3) of 2023.
In a report released on Tuesday, September 24, the NBS defined unemployment as the portion of the labor force actively seeking work but unable to secure employment. The report also highlighted disparities in unemployment rates by gender and location: the unemployment rate for men was 4.3%, while it was higher for women at 6.2%. Urban areas experienced a 6.0% unemployment rate, compared to 4.3% in rural areas during the same period.
While the overall unemployment rate increased, youth unemployment showed a slight decline, dropping from 8.6% in Q3 2023 to 8.4% in Q1 2024.
Additionally, the NBS reported a decrease in Nigeria’s employment-to-population ratio, which fell to 73.2% in Q1 2024, down from 75.6% in Q3 2023. This ratio indicates the percentage of the working-age population that is employed. The data revealed that 74.2% of men and 72.3% of women were employed in Q1 2024.
In urban areas, the employment-to-population ratio was 69.5%, while rural areas recorded a higher ratio of 78.9%. This reflects a slight decline from 71.1% and 80.7% in Q3 2023 for urban and rural areas, respectively.
The NBS report also indicated a continuing shift in Nigeria’s labor market, with a gradual decline in self-employment. In Q1 2024, self-employed individuals comprised 84% of the workforce, down from 86% in the same period the previous year. This shift suggests a transition from self-employment to more formal employment opportunities, with the share of employed persons receiving salaries or wages rising to 16% in Q1 2024, up from 12.7% in Q3 2023.
Gender disparities were evident in self-employment rates, with 87.9% of women engaged in self-employment compared to 79.9% of men. Furthermore, the self-employment rate was significantly higher in rural areas (91.9%) than in urban areas (78.2%).
Overall, the NBS report provides a comprehensive overview of Nigeria’s labor market in Q1 2024, highlighting trends in unemployment and changes in the employment structure.
