Nigeria’s Q2 Unemployment Edges Up to 4.2%: NBS Report

Infostride News recently reported on Nigeria’s labor landscape, drawing insights from the National Bureau of Statistics (NBS) Labour Force report for the second quarter of 2023. In this period, the country’s unemployment rate saw a marginal increase from 4.1% to 4.2%, signaling a modest uptick of 0.1% compared to the first quarter.

Gender Disparities in Unemployment:
The NBS report highlighted a noteworthy gender disparity in unemployment, revealing that more women of working age were unemployed compared to their male counterparts. Specifically, the male unemployment rate was reported at 3.5%, whereas the female unemployment rate stood higher at 5.9%.

Regional Disparities:
The analysis based on location showcased disparities between urban and rural unemployment rates. Urban areas reported an unemployment rate of 5.9%, while rural areas recorded a lower rate at 2.5%. This divergence reflects the nuanced employment challenges faced by different segments of the population.

Youth Unemployment:
The report delved into the unemployment scenario among the youth (15 to 24 years), revealing an increase from 6.9% in Q1 to 7.2% in Q2. This incremental change underscores the challenges faced by young individuals in securing gainful employment opportunities.

Employment-to-Population Ratio:
The employment-to-population ratio for Q2 was reported at 77.1%, providing a broader perspective on the overall workforce participation during this period.

Underemployment Dynamics:
While the underemployment rate experienced a slight decline from 12.2% in Q1 to 11.8% in Q2, gender and location-based disparities persisted. More women were identified as underemployed, constituting 15.3%, compared to men at 8.4%. Urban underemployment stood at 10.3%, whereas rural areas experienced a higher rate of 13.2%.

Employment Structure:
The NBS report shed light on the composition of employment in Nigeria, revealing that 88.0% of employed individuals were self-employed, while the remaining 12.0% were employees in Q2. Further analysis based on gender indicated that a higher percentage of women (91.0%) reported being self-employed compared to men (85.2%).

Informal Employment:
A staggering 92.7% of employed Nigerians were engaged in the informal sector, with even higher rates observed among women and those without formal education. Notably, 99.6% of employed individuals without formal education were part of the informal workforce. In urban areas, 88% of the working population participated in informal employment, while rural areas exhibited a higher rate at 97.3%.

Backstory and Methodology:
The report contextualized these findings by referencing the NBS Labour Force reports for Q4, 2022, and Q1, 2023. It highlighted a significant drop in the unemployment rate from 33.3% in Q4, 2020, to 4.1% in Q1, 2023. This substantial decrease was attributed to a revised methodology employed by the NBS, which now defines unemployment as those engaged in paid employment for at least one hour in the past seven days, as opposed to the previous criterion of at least 20 hours of productive activity weekly.