Nigeria’s unemployment rate has seen a dramatic drop from 33.1% reported in March 2021 to 4.1% for the first quarter of 2023 and 5.3% in the 4th quarter of 2022.
The National Bureau of Statistics (NBS) released its employment data for the first quarter of 2023, indicating a substantial improvement in the job market.
As per the newly-revised Nigeria Labour Force Survey (NLFS), which now aligns with International Labour Organisation (ILO) guidelines, the unemployment rate in the country has been reported at a promising 5.3%.
New Methodology – The NBS enhanced its data collection process for the NLFS by sampling 35,520 households across Nigeria.
Employment Rates on the Rise – The data shows an uptick in the percentage of working-age Nigerians (defined as persons aged 15 years and above) who were employed: 73.6% in Q4 2022 and 76.7% in Q1 2023.
Underemployment and Wage Employment – The rate of underemployment, defined as those working less than 40 hours a week but willing to work more, stood at 13.7% in Q4 2022 and declined to 12.2% in Q1 2023.
Gender and Demographic Insights – About one-third of employed persons (36.4% in Q4 2022 and 33.2% in Q1 2023) worked fewer than 40 hours per week.
Entrepreneurial Activities and Household Support – The majority of employed Nigerians operated their own businesses or engaged in farming, with 73.1% doing so in Q4 2022 and 75.4% in Q1 2023.
Apprenticeship and Internships – The report also highlighted that 2.6% of the employed population were engaged as apprentices or interns in Q4 2022, and this figure declined to 2.2% in Q1 2023.
The NBS report clarified several terms:
While the NBS’s Q1 2023 unemployment report paints an optimistic picture of Nigeria’s job market, there are important caveats that warrant attention.
Finally, while the reported 5.3% unemployment rate and other positive trends should be seen as encouraging indicators, they should also be taken with a grain of skepticism.
The new methodology, although more robust and internationally compliant, may not wholly capture the complexities and challenges of the Nigerian employment landscape.
This makes it crucial for stakeholders, ranging from policymakers to investors, to consider these nuances when interpreting the data and planning their next steps.
