Nigeria’s unemployment rate has seen a slight increase, rising to 5.3 percent in the first quarter of 2024, up from 5.0 percent in the third quarter of 2023, according to the latest report from the National Bureau of Statistics (NBS) released on Tuesday. The report indicates a significant gender disparity, with female unemployment recorded at 6.2 percent compared to 4.3 percent for males.
The unemployment rate in urban areas remained stable at 6.0 percent, while rural unemployment was lower at 4.3 percent. “The unemployment rate increased to 5.3 percent in Q1 2024 from 5.0 percent in Q3 2023. The unemployment rate among males was 4.3 percent, and 6.2 percent among females,” the NBS report stated.
Among the youth aged 15 to 24, there was a slight decrease in unemployment, with the rate dropping to 8.4 percent from 8.6 percent in the previous quarter. However, the percentage of youths not engaged in education, employment, or training (NEET) rose to 14.4 percent, indicating a growing trend of disengagement among this demographic. “The NEET rate was 14.4 percent, indicating a 0.7 percentage point increase from Q3 2023,” the report noted.
The report also highlighted a decrease in time-related underemployment, which dropped to 10.6 percent in Q1 2024 from 12.3 percent in Q3 2023. Despite efforts to promote wage employment, self-employment remains prevalent, with 84 percent of workers classified as self-employed, although this represents a decline from 86 percent in Q1 2023. Rural areas exhibited a higher self-employment rate at 91.9 percent, compared to 78.2 percent in urban regions.
Nigeria’s labor force participation rate has also declined, falling to 77.3 percent in Q1 2024 from 79.5 percent in the previous quarter. This rate reflects the proportion of the working-age population that is either employed or actively seeking work. Rural areas reported a higher participation rate of 82.5 percent, while urban areas lagged at 74 percent. Male participation stood at 77.5 percent, while female participation was slightly lower at 77.1 percent.
The employment-to-population ratio, indicating the percentage of the working-age population that is employed, also saw a decline, dropping to 73.2 percent in Q1 2024 from 75.6 percent in Q3 2023. This trend highlights a contraction in job opportunities across various sectors, particularly in urban areas, where the employment ratio fell to 69.5 percent from 71.1 percent.
In February, Nigeria’s unemployment rate had surged to 5.0 percent in Q3 2023, up from 4.2 percent in the previous quarter, signaling ongoing challenges in the nation’s labor market. The latest figures underscore the pressing need for targeted interventions to address the increasing unemployment rates and support disengaged youth across the country.
