Nigeria’s unemployment rate increased slightly to 5.3% in the first quarter of 2024, up from 5.0% in the third quarter of 2023, according to a recent report by the National Bureau of Statistics (NBS). The report highlights gender disparities, with female unemployment at 6.2% compared to 4.3% for males.
Urban areas saw the unemployment rate remain steady at 6.0%, while rural unemployment stood at 4.3%. Youth unemployment for individuals aged 15 to 24 showed a marginal decrease to 8.4%, down from 8.6% in the previous quarter. However, the percentage of youths not in education, employment, or training (NEET) rose to 14.4%, indicating higher levels of disengagement among the younger population.
The report also noted a reduction in time-related underemployment, which measures workers seeking additional hours, falling to 10.6% from 12.3% in Q3 2023. Despite efforts to expand wage employment, self-employment remains dominant, accounting for 84% of the workforce, though this is slightly down from 86% in the previous year. Rural areas continued to have a higher rate of self-employment at 91.9%, compared to 78.2% in urban areas.
The labour force participation rate, which measures the percentage of the working-age population that is either employed or seeking work, dropped to 77.3% in Q1 2024 from 79.5% in Q3 2023. Participation was higher in rural areas at 82.5%, compared to 74% in urban regions.
The employment-to-population ratio, which indicates the proportion of the working-age population that is employed, also saw a decline, dropping to 73.2% in Q1 2024 from 75.6% in Q3 2023. Urban areas were hit hardest, with the ratio falling to 69.5%, while rural areas experienced a smaller decrease to 78.9%.
This data reflects ongoing challenges in Nigeria’s labor market, particularly in job creation and youth engagement.
