Nigeria’s unemployment rate dropped to 4.3% in the second quarter (Q2) of 2024, marking a notable improvement from 5.3% recorded in Q1, according to data from the National Bureau of Statistics (NBS).
The findings were disclosed in the Nigeria Labour Force Survey (NLFS) Q2 2024 report released by the bureau on Monday. The report attributes the decline in unemployment to increased labour force participation and a higher employment-to-population ratio during the quarter under review.
Employment Indicators Show Upward Trend
According to the NBS, the employment-to-population ratio—a measure of how much of the working-age population is engaged in employment—rose to 76.1% in Q2 2024, up from 73.2% in Q1 2024. However, a year-on-year comparison reveals a slight dip from 77.1% in Q2 2023.
The labour force participation rate also showed a healthy increase, climbing to 79.5% in Q2 from 77.3% in the previous quarter. This indicates that more Nigerians within the working-age population are either employed or actively seeking employment.
Additionally, the combined rate of unemployment and time-related underemployment—referred to as LU2—fell to 13%, down from 15.3% in Q1 2023, pointing to a broader recovery in labour market conditions.
Youth and Education-Specific Unemployment Rates
The report provided a closer look at unemployment figures across various demographics:
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Youth unemployment (ages 15–24) was recorded at 6.5% in Q2.
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Among those with secondary education, unemployment stood at 7.6%.
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The NEET rate—which refers to youth not in education, employment, or training—was 12.5%, with a higher incidence among females than males.
These figures suggest ongoing challenges in integrating young people and those with mid-level education into the workforce.
Urban-Rural Disparity Persists
The data also highlighted a stark difference between urban and rural unemployment rates:
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In urban areas, unemployment was 5.2%, significantly higher than the 2.8% recorded in rural regions.
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Meanwhile, time-related underemployment—which measures workers who are employed but working fewer hours than desired—dropped to 9.2% from 10.6% in Q1.
This urban-rural divide reflects ongoing structural imbalances in job creation, particularly in metropolitan areas where competition for jobs is more intense.
Informal Sector Still Dominates
Despite improvements in employment metrics, the report underscores the prevalence of informal work, which continues to dominate Nigeria’s labour market. According to the NBS, 93% of employed individuals operate within the informal sector, highlighting the need for stronger policy frameworks to transition workers into more secure, formal employment.
Additionally, only 3.7% of the working-age population is currently engaged in subsistence agriculture, showing a modest contribution from the agricultural sector to national employment.
Conclusion
While the decline in Nigeria’s unemployment rate is encouraging, the high rate of informal employment, urban-rural disparities, and persistent youth joblessness signal the need for sustained policy intervention. The federal government and private sector stakeholders will need to intensify efforts in skills development, job creation, and economic diversification to maintain this positive momentum.
