Nigeria’s unemployment rate increased to 5.3% in Q1 2024

The National Bureau of Statistics (NBS) has reported an increase in Nigeria's unemployment rate to 5.3% in the first quarter (Q1) of 2024, up from 5.0% recorded in the third quarter (Q3) of 2023.

In its report released on Tuesday, September 24, the NBS defined unemployment as the share of the labor force actively seeking work but unable to find employment. The report also highlighted disparities in unemployment rates based on gender and location. The unemployment rate among men stood at 4.3%, while for women it was higher at 6.2%. Urban areas saw an unemployment rate of 6.0%, compared to 4.3% in rural areas during the same period.

While the overall unemployment rate increased, the report noted a slight decline in youth unemployment, which dropped from 8.6% in Q3 2023 to 8.4% in Q1 2024.

The NBS also highlighted a decrease in Nigeria’s employment-to-population ratio, which fell to 73.2% in Q1 2024, down from 75.6% in Q3 2023. This ratio measures the percentage of the working-age population that is employed. The data showed that 74.2% of men and 72.3% of women were employed in Q1 2024.

The employment-to-population ratio in urban areas was 69.5%, while rural areas recorded a higher ratio of 78.9%. This represents a slight drop from the 71.1% and 80.7% recorded in Q3 2023 for urban and rural areas, respectively.

The NBS report revealed a continuing shift in Nigeria’s labor market, with a gradual decline in self-employment. In Q1 2024, self-employed individuals made up 84% of the workforce, down from 86% in the same period the previous year. The report indicated that this shift marks a transition from self-employment to more formal employment opportunities, with the share of employed persons receiving salaries or wages rising to 16% in Q1 2024, up from 12.7% in Q3 2023.

Gender disparities were also evident in self-employment rates, with 87.9% of women engaged in self-employment compared to 79.9% of men. Additionally, the self-employment rate was significantly higher in rural areas (91.9%) than in urban areas (78.2%).

The NBS report provides a comprehensive look at Nigeria's labor market in Q1 2024, shedding light on both unemployment trends and shifts in the structure of employment.