Nigeria’s unemployment rate fell to 4.3% in the second quarter of 2024, down from 5.3% in the first quarter, according to the latest report by the National Bureau of Statistics (NBS) released on Monday. This marks a steady recovery from the 5.0% rate recorded in Q3 2023, signaling gradual improvements in the country’s labor market.
The Labour Force Participation Rate rose to 79.5%, up from 77.3% in the previous quarter, reflecting increased workforce engagement. Additionally, the Employment-to-Population Ratio climbed to 76.1% in Q2 from 73.2% in Q1, indicating a higher proportion of the working-age population was gainfully employed during the period.
Self-Employment and Informal Sector Dominate
Self-employment remained a cornerstone of Nigeria’s labor market, accounting for 85.6% of total employment, up from 84% in Q1. Similarly, informal employment rose slightly to 93%, underscoring the economy’s heavy reliance on informal jobs.
Urban vs. Rural Trends
Urban unemployment fell to 5.2% from 6.0% in Q1 2024, while rural areas recorded an even lower unemployment rate of 2.8%, compared to 4.3% in the previous quarter. The disparity highlights the continued dominance of agriculture and informal activities in rural employment, contrasting with the urban reliance on formal and service-driven sectors.
Youth Unemployment and Gender Disparities
The unemployment rate among youths aged 15–24 dropped significantly to 6.5%, down from 8.4% in Q1. However, the report noted persistent gender disparities: female unemployment stood at 5.1%, compared to 3.4% for males.
The NBS emphasized the need for gender-inclusive policies to bridge the employment gap, stating:
“Unemployment among females remains higher, reflecting the need for targeted interventions to ensure balanced opportunities across genders.”
Labour Underutilisation and Inclusivity Metrics
Time-related underemployment, which tracks workers seeking additional hours, declined to 9.2% in Q2 from 10.6% in Q1. Broader labour underutilisation metrics also improved:
LU2 (unemployment and time-related underemployment) dropped to 13.0% from 15.3%.
LU3 and LU4, which include potential labor force participation, declined to 5.9% and 14.5%, respectively.
Participation rates showed minimal gender disparity, with males at 79.5% and females at 79.1%. However, notable differences emerged in urban versus rural engagement (77.2% vs. 83.2%) and between individuals with and without disabilities (36.7% vs. 80.0%).
Call for Inclusivity
The report highlights the need for greater inclusivity, particularly for persons with disabilities (PWDs), whose labor participation rate remains significantly lower. Efforts to address these disparities could further strengthen workforce engagement and economic growth.
The NBS reaffirmed its commitment to providing accurate labor data, which it considers crucial for shaping policies that drive employment and socio-economic development.
