Nigeria's Unemployment Rate Sees Significant Drop to 4.3% in Q2 2024

Unemployment Rate in Nigeria Sees Significant Decline

“Unemployment is one of the components of labour underutilization...”

Nigeria's unemployment rate has dropped to 4.3% in the second quarter of 2024, according to the National Bureau of Statistics.

Nigeria's unemployment rate has taken a positive turn, dropping to 4.3% in the second quarter of 2024, according to the latest data from the National Bureau of Statistics (NBS). This decrease marks a significant improvement from the 5.3% recorded in the first quarter of 2024 and a steady recovery from 5.0% in the third quarter of 2023.

The Labour Force Participation Rate has also seen a notable increase, rising to 79.5% from 77.3% in the previous quarter, indicating greater engagement and participation in the workforce. This trend is a welcome development for Nigeria's economy.

The Nigeria Labour Force Survey (NLFS) provides comprehensive quarterly data on employment, unemployment, and other characteristics of the nation's labor force, offering national-level estimates with high precision. These statistics offer valuable insights into the state of Nigeria's labor market and the effectiveness of policies aimed at promoting employment and economic growth.

The Employment-to-Population Ratio experienced a notable improvement, increasing to 76.1% in the second quarter of 2024, up from 73.2% in the first quarter of 2024. This significant rise indicates that a larger proportion of the working-age population secured gainful employment during this period.

Self-employment continued to be the dominant form of employment, accounting for 85.6% of total employment in the second quarter of 2024. This represents a slight increase from 84% in the preceding quarter. Furthermore, informal employment saw a modest rise to 93.0%, highlighting the economy's ongoing reliance on informal sectors.

A positive trend emerged in urban unemployment, which decreased to 5.2% in the second quarter of 2024, down from 6.0% in the first quarter. In contrast, rural areas experienced a significantly lower unemployment rate of 2.8%, a notable decline from 4.3% in the previous quarter. This disparity underscores the vital role of agriculture and informal work in rural employment, whereas urban areas rely more heavily on formal and service-oriented jobs.

The youth unemployment rate (ages 15-24) also saw a substantial decline to 6.5%, compared to 8.4% in the first quarter of 2024. However, the report highlighted persistent gender disparities, with the unemployment rate for females standing at 5.1%, surpassing the 3.4% rate for males. These findings emphasize the need for targeted policies that address gender-specific challenges and promote more inclusive employment opportunities.

It read, “The unemployment rate is defined as the share of the labour force not employed but actively searching for and available for work.

“Unemployment is one of the components of labour underutilization. The unemployment rate for the second quarter of 2024 was 4.3 percent, showing an increase of 0.1 percentage point compared to the same period last year.

“The unemployment rate among males was 3.4 percent and 5.1 percent among females.

“By place of residence, the unemployment rate was 5.2 percent in urban areas and 2.8 percent in rural areas. Youth unemployment rate was 6.5 percent in the second quarter of 2024, showing a decrease from 8.4 percent in the first quarter 2024.”