National Bureau of Statistics (NBS) has revealed that Nigeria’s unemployment rate increased to 5.3 percent in the first quarter (Q1) of 2024.
Gatekeepers News reports that NBS in a report made on Tuesday, said the unemployment rate increased compared to the 5 percent recorded in Q3 2023.
According to NBS; the unemployment rate is the share of the labour force (the combination of unemployed and employed people) who are not employed but are actively searching and are available for work.
It said, “The unemployment rate for Q1 2024 was 5.3%, showing an increase from 5.0% recorded in Q3 2023.”
“The unemployment rate among males was 4.3% and 6.2% among females.”
“By place of residence, the unemployment rate was 6.0% in urban areas and 4.3% in rural areas for Q1 2024.”
Unemployment rate for youths dropped to 8.4 percent in Q1 2024, a 0.2 increase from result in Q3 2023.
The NBS report showed that unemployment by educational attainment in Q1 2024 was 2.0 percent among individuals with postgraduate education, 9.0 percent for post-secondary education, 6.9 percent for secondary education, and 4.0 percent for individuals with only primary education.
Also, the bureau’s report indicated that Nigeria’s employment-to-population ratio, a key workforce participation measure, declined in the first quarter of 2024.
The ratio, which represents the percentage of the employed working-age population, fell to 73.2 percent, with 02.4% reduction from what was recorded in the third quarter of 2023.
NBS said, “In Q1 2024, 73.2% of Nigeria’s working-age population was employed, down from 75.6% in Q3 2023.”
“Disaggregating by sex, the employment-to-population ratio was 74.2% for males and 72.3% for females in Q1 2024.”
“Additionally, the employment-to-population ratio in urban areas was 69.5% and 78.9% in rural areas in Q1 2024.”
“This is a decrease in the ratio compared to the 71.1% and 80.7% in Q3 2023, respectively.”
Furthermore, the report showed that Nigeria’s labour market saw a notable shift due to a proportion of self-employed individuals’ continous decline.
In Q1 2024, self-employment accounted for 84 percent of the workforce, with a 2% reduction in the same period the previous year, marking a gradual transition from self-employment to more formal employment opportunities.
NBS noted that employment is divided into two categories: employees and the self-employed.
Self-employed workers are individuals working on their account, often with family assistance, and without engaging continuous employees.
Employees, on the other hand, are those receiving salaries or wages, including paid apprentices.
NBS said, “The proportion of persons in self-employment declined from 86% in Q1 2023 to 84% in Q1 2024.”
“Survey findings reveal an increase in the share of employed persons primarily engaged as employees between Q1 2024 (16.0%) and Q3 2023(12.7%).”
“The self-employment rate among females was 87.9% while males was 79.9%.”
The bureau’s report on disaggregation by place of residence showed the rate of self-employed persons in rural areas was 91.9 percent and 78.2 percent in urban areas.
