In the second quarter of 2023, approximately 88% of working-age Nigerians found themselves without traditional salaried employment, instead opting for self-employment, a marginal increase from the 86% recorded in the preceding quarter. This shift underscores the resilience of ordinary Nigerians in the face of mounting economic challenges, as individuals increasingly turned to entrepreneurial endeavors to navigate the evolving economic landscape.
Contrary to the prevalent narrative of wage employment, only about 12% of working-age Nigerians were involved in formal employment during this period, representing a slight uptick from 11.8% in the previous quarter. The asksource.info platform defines wage employment as any paid job, whether salaried or contractual, within both formal and informal economies. This data suggests a prevailing trend of individuals creating opportunities for themselves rather than relying on traditional employment structures.
Breaking down the employment landscape further, the Nigeria Labour Force Survey for Q2 2023, as reported by Infostride News, reveals that self-employment is more pronounced among women, accounting for approximately 91% of employed women, while for men, the figure stands at 85.2%. Moreover, self-employment is particularly widespread in rural areas, with 95.3% of employed individuals in these regions being self-employed compared to 80.5% in urban areas.
The report from Infostride News also sheds light on the prevalence of informal employment in Nigeria, which stands at a staggering 92.7% by the second quarter of 2023. This high rate of informal employment is notably higher among women, and it is more predominant in rural areas. The lack of formal education is correlated with a higher likelihood of engaging in informal jobs, with 99.6% of individuals with no formal education found in informal employment.
Comparatively, the prevalence of informal employment in Nigeria remains notably higher than that in developed countries. The informal employment rate captures the share of employed persons in the informal sector, emphasizing the need for a closer examination of the dynamics driving informal employment in the country.
Addressing the broader employment scenario, Infostride News notes that Nigeria’s informal employment rate of 92.7% in Q2 202
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