Nigeria’s unemployment rate drops to 4.3% in Q2’24

Business a.m.

Nigeria’s unemployment rate dipped from 5.3 percent in the first quarter of 2024 to 4.3 percent in the second quarter of  the year, according to the latest report from the National Bureau of Statistics (NBS) released on Monday.

The “Nigeria Labour Force Survey Q2 2024” showed that while urban regions continued to battle a 5.2 percent unemployment rate, rural regions saw a more positive turn, with the unemployment rate dropping to 2.8 percent.

According to the report, the working-age population saw an increase in labour force participation rate from 77.3 percent in Q1 2024 to 79.5 percent in Q2 2024, according to the report released by the NBS.

The uptick in labor force participation rate to 79.5 percent in Q2 2024 highlights an increasing number of individuals entering the labor market

The NBS report disclosed that the labour force participation rates for males and females are almost neck and neck, with males standing at 79.9.5 percent and females at 79.1 percent. 

Nigeria’s employment-to-population ratio, as highlighted in the report, saw a promising uptick to 76.1 percent in Q2 2024, revealing a 2.9 percentage point increase from the 73.2 percent recorded in Q1 2024.

However, when assessed on a year-on-year basis, the ratio declined slightly from 77.1 percent recorded in Q2 2023

The report also stated, “A more significant gap exists between those with and without disabilities. While 80.0 percent of individuals without disabilities participate in labour related activities, only 36.7 percent of those with disabilities do, highlighting the need for greater inclusivity and targeted support to improve engagement among PWDs.”

The NBS brought attention to the importance of statistics on informality in gauging the quality of employment in an economy.

In accordance with the report, informality levels in Nigeria remain high in Q2 2024, showing a minor uptick from the 92.7 percent recorded in Q1 2024 to 93.0 percent in the subsequent quarter.