Economic Hardship Pushes Unemployment Rate To 5.3% In Q1

Nigeria’s unemployment rate increased to 5.3 percent in Q1 2024, from 5 per cent in Q3 2023, as the economic hardship in the country continues to take a massive toll on companies; operational costs leading to total collapse of some businesses or in many cases, downsizing.

The  National Bureau of Statistics has said in its Q1 2024 recent data, noted that by place of residence, the rate was 6 percent in urban areas and 4.3 percent in rural areas for Q1 2024.

The unemployment rate among youth aged (15-24 years) was 8.4 percent in Q1 2024, a decrease of 0.2 percent compared to Q3 2023 (8.6 percent).

The percentage of youth not in education, employment, or training (NEET rate) was 14.4 percent in Q1 2024, according to the statistics bureau, showing a 0.7 percentage point increase from 13.7 percent in Q3 2023. The results also showed a higher NEET rate among females at 15.9 percent, compared to 13 per cent for males in Q3 2023.

Nationally, 1.5 per cent of employed Nigerians spent between 1-9 hours in a week, 4.8 percent spent between 10-19 hours in a week, approximately 25 percent worked between 20-39 hours, 22 percent between 40-48 hours, and the 46 percent worked 48 hours and above in a week.

Nigeria is facing severe economic hardship, marked by a nearly 30 per cent inflation rate and skyrocketing food prices, with rice costs rising by 35 per cent over the past year. The government’s removal of fuel subsidies has exacerbated the crisis, leading to a tripling of petrol prices.

Many Nigerians are struggling to afford basic necessities, and the unemployment rate has increased to 5%. Efforts to mitigate the situation include cash transfers to poorer households and regulating food prices, but challenges persist due to corruption and inadequate infrastructure.

In 2023, 77.6 million individuals were engaged in informal employment, accounting for 92.2 percent of the employed population.

Kano State had the highest number of informal workers, with about 5.2 million individuals engaged in informal employment

The working-age population in 2023 was 116.6 million, representing 53.8 per cent of the total population. Women accounted for 52 per cent of this population, with men at 48 per cent.

The annual Labour Force Participation rate was 76.3 percent, equivalent to 88.9 million individuals. Bauchi State recorded the highest participation rate at 92.3 percent, while Ekiti State had the lowest at 63.4 percent.