NBS: Unemployment Rate Increased to 5.3% in Q1

•Says 84.1 million Nigerians Employed, 77.6 million in informal sector in 2023  

• With 18.7%, Abia topped unemployment chart

James Emejo in Abuja

Nigeria’s unemployment rate rose to 5.3 per cent in the first quarter of the year (Q1 2024) compared to five per cent in the fourth quarter of last year (Q4 2023), the National Bureau of Statistics (NBS) said yesterday.

According the Nigeria Labour Force Statistics Report, Q1 2024, unemployment among persons with post-secondary education was nine per cent, and 8.4 per cent among youth aged 15-24 years, a decrease of 0.2 per cent compared to 8.6 per cent in Q3 2023.

The unemployment rate in urban areas stood at six per cent, same as in the preceding quarter.

NBS further stated that time-related underemployment stood at 10.6 per cent, showing a decrease of 1.7 per cent, from 12.3 per cent in Q3 2023.

The report stated that 4.5 per cent of the working-age population remained in subsistence agriculture.

The employment-to-population ratio was 73.2 per cent, a decrease of 2.4 per cent compared to 75.6 per cent in the preceding quarter.

The ratio in urban areas was 69.5 per cent and 78.9 per cent in rural areas compared to compared to 71.1 per cent and 80.7 per cent, respectively, in the preceding quarter.

The proportion of workers in wage employment rose to 16.0 per cent in Q1 2024, indicating 3.3 per cent increase from 12.7 per cent in the preceding quarter.

According to the statistical agency, 20.1 per cent of males were in wage employment, compared to 12.1 per cent of females. Wage employment was also higher in urban areas at 21.8 per cent compared, to 8.1 per cent in rural areas.

The report said of the total working-age population in 2023, 84.1 million individuals were employed, including 20.6 million persons between the ages of 15 and 24.

The labour force participation rate among the working-age population declined to 77.3 per cent in Q1 2024, from 79.5 per cent in Q3 2023.

The employment-to-population ratio was 73.2 per cent in Q1 2024, which showed a decrease of 2.4 per cent compared to 75.6 per cent in the preceding quarter.

According to NBS, the combined unemployment rate and time-related underemployment as a share of the labour force population (LU2) decreased to 15.3 per cent in Q1 2024, from 17.3 in Q3 2023.

Also, the proportion of workers in wage employment in Q1 2024 in the review period stood at 16 per cent, amounting to a 3.3 per cent increase, from 12.7 per cent in Q3 2023.

Moreover, the percentage of youth Not in Education, Employment or Training (NEET Rate) increased to 14.4 per cent, indicating a 0.7 per cent rise.

NBS also published the 2023 Annual Nigeria Labour Force Survey (NLFS), which put the working-age population at 116.6 million, representing 53.8 per cent.

Women accounted for 52 per cent of the working population, with men at 48 per cent.  The headline unemployment rate at the national level stood 5.4 per cent in 2023.

At the state level, Abia recorded the highest unemployment rate at 18.7 per cent, while Nasarawa had the lowest at 0.5 per cent.

In terms of educational attainment, the unemployment rate was highest at 9.4 per cent among persons with post-secondary education. This was followed by those with secondary education at 6.7 per cent, and those with primary education at 4.1 per cent.

The rate was lowest for those with no formal qualification at 3.2 per cent.

In 2023, national time-related underemployment stood at 11.1 per cent, with 8.3 per cent for men and 13.4 per cent for women.

Plateau had the highest time-related underemployment at 33.9 per cent, while Nasarawa recorded the lowest at 0.3 per cent.

The youth NEET rate was 15.6 per cent, with Abia recording the highest NEET rate at 38.1 per cent and Zamfara lowest at 4.5 per cent.

The annual Labour Force Participation rate was 76.3 per cent, equivalent to 88.9 million individuals.

Bauchi recorded the highest participation rate at 92.3 per cent, while Ekiti State had the lowest at 63.4 per cent.

Of the total working-age population in 2023, 84.1 million individuals were employed, including 20.6 million persons between the ages of 15 and 24.

The national employment-to-population ratio was 72.2 per cent, with 77.3 per cent in rural areas and 68.7 per cent in urban areas.

Bauchi State had the highest employment-to-population ratio at 88.4 per cent, while Rivers State recorded the lowest at 55.7 per cent.

By sex, the EPR was 73.7 per cent for males and 70.7 per cent for females.

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

Kano had the highest number of informal workers, with about 5.2 million individuals engaged in informal employment, followed by Lagos with 4.6 million people (excluding agriculture), the report added.