BusinessEconomyNewsNigeriaUnemployment Rate Rises to 5.3% in Q1 2024

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NBS Reports Gender and Regional Disparities

Nigeria’s unemployment rate rose to 5.3 per cent in the first quarter of 2024, compared to 5.0 per cent in the last quarter of 2023, the National Bureau of Statistics, NBS, disclosed on Tuesday. This increase highlights a concerning trend, with more Nigerians unable to secure jobs.

The report from NBS further broke down the figures by gender and location. Unemployment among females stood higher at 6.2 per cent, while males had a lower rate of 4.3 per cent. In terms of location, urban areas recorded a 6.0 per cent unemployment rate, as opposed to the 4.3 per cent in rural areas.

The youth unemployment rate showed a slight improvement, dropping to 8.4 per cent from 8.6 per cent in Q3 2023. However, the report noted that the rate was still concerning, particularly for those with higher educational qualifications.

For instance, the unemployment rate for individuals with postgraduate education was 2.0 per cent, while those with post-secondary education faced 9.0 per cent. Meanwhile, individuals with secondary and primary education had rates of 6.9 per cent and 4.0 per cent, respectively.

Nigeria’s employment-to-population ratio fell from 75.6 per cent in Q3 2023 to 73.2 per cent in Q1 2024. This indicates that fewer people of working age were employed during the period.

Rural areas had a higher employment ratio at 78.9 per cent compared to 69.5 per cent in urban areas.

Additionally, self-employment, which has traditionally formed a large part of the Nigerian economy, declined from 86 per cent in Q1 2023 to 84 per cent in Q1 2024.

The share of employed persons engaged as wage workers increased from 12.7 per cent in Q3 2023 to 16.0 per cent in Q1 2024.

The self-employment rate among females was significantly higher at 87.9 per cent, compared to 79.9 per cent for males. The rural self-employment rate was 91.9 per cent, higher than the 78.2 per cent recorded in urban areas.

The report also highlighted a decline in underemployment, dropping to 10.9 per cent in Q1 2024, from 12.3 per cent in Q3 2023.

The underemployment rate among men stood at 8.5 per cent, while women faced a higher rate of 12.5 per cent. Urban underemployment was recorded at 9.7 per cent, compared to 11.8 per cent in rural areas.

Furthermore, the NBS noted a rise in discouraged job seekers, with the figure increasing to 3.6 per cent in Q1 2024 from 3.1 per cent in Q3 2023.

Among discouraged job seekers, 3.8 per cent were female, while 3.4 per cent were male.

By Ezinwanne Onwuka (Senior Reporter)

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