The National Bureau of Statistics (NBS) announced that Nigeria’s unemployment rate dropped to “4.3%” in the second quarter of 2024, marking a notable improvement from “5.3% in Q1 2024” and “5.0% in Q3 2023”.
This decline underscores a gradual recovery in the nation’s labor market.
According to the latest “Nigeria Labour Force Survey (NLFS)”, the “Labour Force Participation Rate” climbed to “79.5%”, up from “77.3%” in the preceding quarter, signaling increased workforce engagement.
Similarly, the “Employment-to-Population Ratio” rose to “76.1% in Q2 2024”, compared to “73.2% in Q1 2024”, reflecting a higher proportion of the working-age population being gainfully employed.
Self-employment accounted for “85.6% of total employment”, an increase from “84% in Q1 2024”, while informal employment rose slightly to “93.0%”, highlighting the economy’s reliance on informal jobs.
Urban unemployment dropped to 5.2% from 6.0%, while rural areas recorded an even lower unemployment rate of 2.8%, down from 4.3%.
This reflects the rural economy’s dependence on agriculture and informal activities.
The unemployment rate among youths aged 15–24 fell significantly to 6.5%, down from 8.4% in Q1 2024.
The report also highlighted gender disparities, with the unemployment rate for females at 5.1%, compared to 3.4% for males.
The NBS emphasized the need for gender-inclusive policies to address the gap.
Time-related underemployment, which measures workers seeking additional hours, dropped to “9.2% in Q2 2024”, from “10.6% in Q1 2024”.
Overall labor underutilisation metrics showed improvement.
LU2 (unemployment and time-related underemployment) signifies 13.0%, down from 15.3%.
LU3 and LU4 metrics, which account for potential labor force participation, decreased to 5.9% and 14.5%, respectively.
The participation rates between genders were nearly equal, with males at 79.5% and females at 79.1%, indicating balanced workforce engagement.
However, disparities persist in participation based on residence and disability status.
Rural participation stood at 83.2%, compared to 77.2% in urban areas.
Among persons with disabilities (PWDs), labor participation was notably lower at 36.7%, compared to 80.0% for those without disabilities.
The report calls for greater inclusivity and targeted support to boost employment opportunities for PWDs.
“The unemployment rate is defined as the share of the labor force not employed but actively searching for and available for work,” the NBS explained.
“Unemployment is one of the components of labor underutilisation.
The unemployment rate for Q2 2024 was 4.3%, showing an increase of 0.1 percentage point compared to the same period last year.
The unemployment rate among males was 3.4%, while it stood at 5.1% for females.
By residence, the urban unemployment rate was 5.2%, while rural areas recorded 2.8%.
Youth unemployment was 6.5%, reflecting a decrease from 8.4% in Q1 2024,” NBS report continued.
The report provides a comprehensive overview of the labor market, offering critical insights for policymakers to address lingering disparities and further strengthen employment growth.
