Inflationary pressure drives Nigeria’s unemployment rate to 5.3% in Q1’24

Business a.m.

The ongoing economic crisis in Nigeria has led to a rise in the country’s unemployment rate, which increased from 5 percent in Q3 2023 to 5.3 percent in the first quarter of 2024, as companies struggle with mounting operational costs that have resulted in some businesses folding and others drastically reducing their workforce in order to survive.

According to the recent data published by the National Bureau of Statistics (NBS) for Q1 2024, the statistics revealed that the unemployment rate in urban areas stood at six percent, while rural areas reported a rate of 4.3 percent for Q1 2024. Furthermore, youth unemployment (aged 15-24 years) declined to 8.4 percent in Q1 2024, compared to 8.6 percent in Q3 2023.

The NBS reported that the percentage of youth not in education, employment, or training (NEET) increased to 14.4 percent in Q1 2024, a 0.7 percentage point rise from 13.7 percent in Q3 2023. This data, according to the bureau, showed a higher NEET rate among females at 15.9 percent, compared to 13 percent for males in Q3 2023.

The findings of the National Bureau of Statistics revealed the diverse working hours among employed Nigerians across the country. The report showed that 1.5 percent of the employed population worked for between 1-9 hours per week, 4.8% worked between 10-19 hours per week, 25 percent were employed for 20-39 hours, 22 percent worked for 40-48 hours, and the remaining 46 percent worked for 48 hours or more per week.

The current economic landscape in Nigeria is marked by severe financial strain, as the country grapples with an alarming inflation rate of nearly 30 percent, coupled with a sharp increase in food prices, particularly a 35 percent rise in the cost of rice over the past year.

The already dire situation was further exacerbated by the government’s removal of fuel subsidies, causing petrol prices to skyrocket and leading to widespread unrest.

The economic plight of Nigerians is far-reaching, with many finding it increasingly difficult to afford basic necessities, while the unemployment rate continues to rise, now reaching five percent.

In a report published in 2023, it was revealed that informal employment was prevalent in Nigeria, with 77.6 million individuals engaged in this type of work, representing 92.2 percent of the total employed population.

The state with the highest concentration of informal workers was Kano, with approximately 5.2 million individuals engaged in informal employment.

Moreover, Nigeria’s working-age population in 2023 was 116.6 million, constituting 53.8 percent of the total population. Interestingly, women accounted for 52 percent of this population, while men represented 48 percent.

The annual Labour Force Participation rate in Nigeria stood at 76.3 percent, representing 88.9 million individuals actively participating in the labour market. Bauchi State recorded the highest participation rate at a remarkable 92.3 percent, while Ekiti State had the lowest participation rate at 63.4 percent.