Nigeria’s unemployment rate rises to 5.3% in Q1 2024 as economic woes linger  – Nairametrics

Nigeria’s unemployment rate in the first quarter of 2024 rose to 5.3%- a 0.3%-points increase from 5.0% in the third quarter of 2023.

This is according to the National Bureau of Statistics (NBS) survey for the first quarter of 2024.

According to the report, the unemployment rate for males stood at 4.3%, while females experienced a higher rate of 6.2%. In terms of location, urban areas recorded a 6.0% unemployment rate, compared to 4.3% in rural areas.

Youth unemployment during the quarter dropped slightly to 8.4%, down from 8.6% in Q3 2023. When considering educational attainment, individuals with post-graduate education had an unemployment rate of 2.0%, while those with post-secondary education faced 9.0%. For individuals with secondary education, the rate was 6.9%, and for those with primary education, it stood at 4.0%.

Labour Force Participation 

In Q1 2024, Nigeria’s labour force participation rate stood at 77.3%. When analysed according to location, the rate was higher in rural areas at 82.5%, compared to 74.0% in urban areas. Among genders, male participation was 77.5%, while female participation was slightly lower at 77.1%.

In terms of employment-to-population ratio 73.2% of Nigeria’s working-age population was employed, a decline from 75.6% in Q3 2023.

By gender, the employment-to-population ratio was 74.2% for males and 72.3% for females. Regionally, the urban employment rate was 69.5%, while rural areas had a higher rate at 78.9%, both lower than the 71.1% and 80.7% recorded in Q3 2023, respectively.

Self-employment 

The proportion of individuals in self-employment decreased from 86% in Q1 2023 to 84% in Q1 2024. Survey results show a rise in the share of employed persons working as employees, increasing from 12.7% in Q3 2023 to 16.0% in Q1 2024.

Among females, the self-employment rate was 87.9%, while for males it was 79.9%. In rural areas, the self-employment rate was 91.9%, compared to 78.2% in urban areas.

Underemployment 

The share of underemployed Nigerians dropped to 10.9% in Q1 2024, down by 1.4 percentage points from 12.3% in Q3 2023. The NBS defines underemployment as those who work less than 40 hours a week and are willing to work more.

Among men, the underemployment rate was 8.5%, while for women it stood at 12.5%. By location, urban areas recorded an underemployment rate of 9.7%, compared to 11.8% in rural areas.

Furthermore, the report noted that more youths are getting discouraged from seeking employment as the figure in this category rose from 3.1% in Q3, 2023 to 3.6% in the quarter under review.

The rate of discouraged job seekers was 3.4% for males and 3.8% for females in Q1 2024.