The Nigerian unemployment rate has dropped to 4.3 per cent in the second quarter of 2024, indicating a significant improvement in labour market conditions. This latest statistic, released on Monday by the National Bureau of Statistics (NBS), signifies a decrease from the previous quarter’s rate of 5.3 per cent and represents a gradual recovery from 5.0 per cent recorded in the third quarter of 2023.
The report provides a comprehensive overview of the employment landscape in Nigeria, revealing a favourable trend in workforce engagement. The Labour Force Participation Rate, which tracks the proportion of the working-age population actively participating in the labour market, increased to 79.5 per cent, up from 77.3 per cent in the first quarter of 2024.
This uptick reflects an enhanced willingness of individuals to seek and secure employment opportunities. Furthermore, the Employment-to-Population Ratio, a critical indicator of employment levels, also painted a bright picture, climbing to 76.1 per cent in Q22024 from 73.2 per cent in Q1.
This improvement suggests that a larger segment of the working-age population has been able to secure gainful employment during this period, a welcome sign of economic resilience. Self-employment continues to dominate the labour market, representing 85.6 per cent of total employment, an increase from 84 per cent in the previous quarter.
This trend emphasizes the entrepreneurial spirit of Nigerians, even as informal employment rose slightly to 93.0 per cent, underscoring the economy’s heavy reliance on informal jobs for livelihood.
The report further highlighted a significant development in youth unemployment, particularly among individuals aged 15 to 24. The youth unemployment rate declined markedly to 6.5 per cent, down from 8.4 per cent in the previous quarter.
This reduction signals a positive shift for younger Nigerians entering the workforce amidst the challenging economic landscape. However, the report also sheds light on gender disparities within the labour market.
The unemployment rate for females stood at 5.1 per cent, higher than the 3.4 per cent rate for their male counterparts. This discrepancy suggests an urgent need for targeted, gender-inclusive policies aimed at bridging the employment gap and ensuring equitable access to job opportunities for all segments of society.
The NBS defined the unemployment rate as the percentage of the labour force that is unemployed while actively seeking work. It is an essential component of labour underutilization metrics.
The Q22024 unemployment rate represents a slight increase of 0.1 percentage points compared to the same period last year. Geographically, the unemployment rates revealed interesting patterns: urban areas experienced a rate of 5.2 per cent, while rural areas enjoyed a lower rate of 2.8 per cent.
This regional disparity calls for tailored strategies to address employment challenges specific to various locales across the country. Additionally, time-related underemployment, which measures individuals desiring more hours of work, fell to 9.2 per cent in Q22024 from 10.6 per cent in Q1.
Labour underutilisation metrics also demonstrated improvement, with LU2 (encompassing unemployment and time-related underemployment) decreasing to 13.0 per cent from 15.3 per cent in the preceding quarter.
The report concluded with notable declines recorded in LU3 and LU4 metrics, which include potential labour force participation, now at 5.9 per cent and 14.5 per cent, respectively. Collectively, these figures present an optimistic outlook for Nigeria’s labour market, affirming the potential for ongoing economic recovery and employment growth.
As the nation continues to navigate its complexities, these developments signal a step forward in creating a more robust and inclusive labour market for all Nigerians.
