The National Bureau of Statistics (NBS) has announced a significant decline in Nigeria’s unemployment rate, which fell to 4.3% in the second quarter (Q2) of 2024, down from 5.3% recorded in the first quarter (Q1).
The Statistician General of the Federation, Prince Adeyemi Adeniran, disclosed this on Monday while presenting the Q2 2024 Nigerian Labour Force Survey.
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He stated, “The unemployment rate during the period was 4.3 percent, which shows a decrease compared to the rate recorded in Q1 2024 (5.3 percent).”
Highlighting the findings, Adeniran noted that unemployment among youths aged 15-24 and 25-34 was 6.5% each, marking the highest rates in the report. He also revealed a disparity between urban and rural areas, with urban unemployment standing at 5.2%, down from 6% in Q1, while rural unemployment dropped to 2.8% from 4.3%.
Regarding employment trends, the share of wage employment declined slightly to 14.4% in Q2, compared to 16% in Q1. However, informal employment—comprising work in the informal sector, including agriculture—increased to 93% from 92.7%. The rate was higher in rural areas at 97.5%, while urban areas recorded 90%.
The report also showed a drop in time-related underemployment, which measures those working less than 40 hours per week but willing and available for more work, from 10.6% in Q1 to 9.2% in Q2. Additionally, the proportion of youths aged 15-24 who are not in employment, education, or training (NEET) decreased to 12.5% from 14.4%.
The labour force participation rate, which measures the proportion of people engaged in work or actively seeking it, rose to 79.5% in Q2, up from 77.3% in Q1. Men’s participation stood at 79.9%, while women recorded 79.1%, with rural areas leading at 83.2% compared to 77.2% in urban regions.
Prince Adeniran emphasized the importance of the revised methodology adopted since Q4 2022, which aligns with international standards. He said the enhanced system, using GPS-enabled electronic data collection, allows for more accurate analysis and the generation of policy-relevant indicators.
“This improved methodology ensures better quality responses, field monitoring, and the production of indicators that are crucial for designing and monitoring labor market policies and programs in the country,” he explained.
The report underscores the evolving dynamics of Nigeria’s labor market, offering insights to guide policymakers in addressing employment challenges.
