In a recent report released by the National Bureau of Statistics (NBS) titled ‘Nigeria Labour Force Statistics Report Q2 2023,’ it has been disclosed that only 12% of workers in Nigeria were engaged in wage employment as of the end of the second quarter of 2023. The majority, accounting for 88% of the workforce, are self-employed. The report, published on Thursday, highlights the composition of the labor force and sheds light on the current state of employment in the country.
According to the NBS, the total unemployment rate for the period stood at 4.2% as of Q2, 2023, marking a marginal increase from the 4.1% recorded in the previous quarter. The unemployment rate among men was 3.5%, while among women, it was 5.9% in Q2 2023. Urban areas reported a higher unemployment rate at 5.9% compared to 2.5% in rural areas.
Focusing on the youth, the report emphasized that the unemployment rate for individuals aged 15-24 was 7.2% in Q2 2023. The NBS highlighted its enhanced methodology in collecting labor market data through the Nigeria Labour Force Survey, aligning with International Labour Organisation guidelines.
The report points out that the majority of Nigerians are involved in self-employment, either operating their own businesses or engaging in farming activities. Employment is categorized into two broad groups: employees and the self-employed. Employees are those working for pay in the form of salaries or wages, while self-employed individuals include own-account workers, contributing family workers, and employers.
Breaking down the employment categories, the NBS stated, “In Q2 2023, 88.0% of employed Nigerians were primarily self-employed, with the remaining 12.0% being primarily engaged as employees.” Further disaggregation revealed that 85.2% of employed men were self-employed, compared to 91.0% of employed women. In terms of location, 80.5% of employed people in urban areas were self-employed, contrasting with 95.3% in rural areas.
The report also highlighted that informal employment in Nigeria is currently pegged at 92.7%. This indicates that a significant portion of the workforce operates outside formal wage employment structures.
The NBS has faced criticism since changing its employment calculation methodology. Following the release of the ‘4.1% unemployment’ figure for Q1, 2023, the Nigerian Labour Congress expressed skepticism, with the National Secretary-General, Chris Onyeka, stating, “The statistic is not reliable. It is not in sync with what is on the ground. We all know that the rate of unemployment in Nigeria is increasing.”
