Nigeria’s Unemployment Rate Rises To 4.2% In Q2 2023

The National Bureau of Statistics (NBS) has reported an increase in Nigeria’s unemployment rate to 4.2 per cent in Q2 2023 from the 4.1 per cent recorded in Q1 2023.

According to the Nigeria Labour Force Survey for Q2 2023 released in Abuja on Thursday, the NBS defines the unemployment rate as the share of the labour force who were not employed but actively seeking work and available for employment.

The report highlighted the unemployment rates concerning educational attainment. It indicated that the rate among persons with post-secondary education was 8.0 per cent in Q2 2023. For those with upper secondary education, it stood at 5.4 per cent, while those with lower secondary education, primary education, and no formal education were at 3.7 per cent, 3.0 per cent, and 2.5 per cent, respectively.

Regarding age groups, the report mentioned that the unemployment rate among youth aged 15-24 years was 7.2 per cent in Q2 2023, compared to 6.9 per cent in Q1 2023.

Breaking down the figures further, the unemployment rate among men was 3.5 per cent and among women was 5.9 per cent in Q2 2023. The urban unemployment rate was 5.9 per cent, up from 5.4 per cent in Q1 2023, while the rural unemployment rate decreased to 2.5 per cent from 2.9 per cent in Q1 2023.

The report also highlighted time-related underemployment, stating that it was 11.8 per cent in Q2 2023, down from 12.2 per cent in Q1 2023. This referred to the share of employed individuals working fewer than 40 hours per week but willing and available for more work.

Among the working-age population, the labour force participation rate in Nigeria was 80 per cent in Q2 2023, with men at 82.1 per cent and women at 78.8 per cent. The urban participation rate stood at 78.4 per cent, while in rural areas, it was 82.6 per cent.

The employment-to-population ratio for the working-age population was 77.1 per cent in Q2 2023, with men at 79.3 per cent and women at 74.9 per cent. This ratio was 73.8 per cent in urban areas and 80.5 per cent in rural areas.

Furthermore, the report indicated that 88.0 per cent of employed Nigerians were primarily self-employed, while the remaining 12.0 per cent were engaged as employees (wage employment) in Q2 2023.

Additionally, 8.0 per cent of the working-age population were involved in subsistence agriculture, and the informal employment rate was reported at 92.7 per cent in Q2 2023.

Moreover, the report noted that the percentage of youth (15-24 years) categorised as Young Persons Not in Employment, Education, nor Training (NEET) was 13.8 per cent in Q2 2023.

 This indicated an increase from the 12.1 per cent and 10.0 per cent recorded in Q4 2022 and Q1 2023, respectively, according to the NBS.