The National Bureau of Statistics has reported a decline in Nigeria’s unemployment rate, which dropped to 4.3 percent in the second quarter of 2024.
This is an improvement from 5.3 percent in Q1 2024 and reflects a steady recovery from 5.0 percent in Q3 2023.
The report, released on Monday, highlighted a rise in the Labour Force Participation Rate to 79.5 percent, up from 77.3 percent in the previous quarter. This indicates more Nigerians are engaging in the workforce.
“The unemployment rate is defined as the share of the labour force not employed but actively searching for and available for work,” the report stated.
It also revealed that the Employment-to-Population Ratio improved to 76.1 percent in Q2 2024 from 73.2 percent in Q1, showing more working-age individuals found gainful employment during this period.
Self-employment continued to dominate, accounting for 85.6 percent of total employment, an increase from 84 percent in the previous quarter. Informal employment also rose to 93.0 percent, underlining the economy’s reliance on informal jobs.
Urban unemployment dropped to 5.2 percent from 6.0 percent in Q1 2024, while rural unemployment saw a larger improvement, falling to 2.8 percent from 4.3 percent. This difference highlights the role of agriculture and informal activities in rural areas, compared to urban areas where jobs are more formal and service-driven.
Youth unemployment (ages 15–24) saw a significant reduction to 6.5 percent from 8.4 percent in Q1. However, the report revealed gender disparities, with unemployment among females at 5.1 percent compared to 3.4 percent for males.
“This highlights the need for gender-inclusive policies to address employment gaps,” the report added.
Time-related underemployment, which measures workers seeking extra hours, dropped to 9.2 percent in Q2 from 10.6 percent in Q1. Labour underutilisation metrics also improved, with figures for various underemployment measures showing declines.
Participation rates were higher in rural areas (83.2 percent) compared to urban areas (77.2 percent). The report also highlighted low participation among people with disabilities, with only 36.7 percent engaged in labour-related activities compared to 80.0 percent of those without disabilities.
