The National Bureau of Statistics (NBS) has reported a rise in Nigeria’s unemployment rate to 5.3% in the first quarter (Q1) of 2024, an increase from the 5.0% recorded in the third quarter (Q3) of 2023.
In its latest report, released on Tuesday, September 24, the NBS clarified that unemployment is defined as the share of the labor force actively seeking employment but unable to secure a job. The report further shed light on disparities in unemployment rates across gender and location. Men experienced an unemployment rate of 4.3%, whereas women faced a higher rate at 6.2%. Urban areas recorded an unemployment rate of 6.0%, in contrast to 4.3% in rural areas during the same period.
Despite the overall increase in unemployment, the report observed a minor decrease in youth unemployment, which fell from 8.6% in the third quarter of 2023 to 8.4% in the first quarter of 2024.
Additionally, the NBS highlighted a decline in Nigeria’s employment-to-population ratio, which dropped to 73.2% in the first quarter of 2024, a decrease from 75.6% in the third quarter of 2023. This ratio indicates the percentage of the working-age population that is employed. The data revealed that 74.2% of men and 72.3% of women were employed in the first quarter of 2024.
The employment-to-population ratio in urban areas was 69.5%, while rural areas recorded a higher ratio of 78.9%. This represents a slight drop from the 71.1% and 80.7% recorded in Q3 2023 for urban and rural areas, respectively.
The NBS report revealed a continuing shift in Nigeria’s labor market, with a gradual decline in self-employment. In Q1 2024, self-employed individuals made up 84% of the workforce, down from 86% in the same period the previous year. The report indicated that this shift marks a transition from self-employment to more formal employment opportunities, with the share of employed persons receiving salaries or wages rising to 16% in Q1 2024, up from 12.7% in Q3 2023.
Gender disparities were also evident in self-employment rates, with 87.9% of women engaged in self-employment compared to 79.9% of men. Additionally, the self-employment rate was significantly higher in rural areas (91.9%) than in urban areas (78.2%).
The NBS report provides a comprehensive look at Nigeria’s labor market in Q1 2024, shedding light on both unemployment trends and shifts in the structure of employment.
