Nigeria’s unemployment rate surges to 5% – NBS

Nigeria is grappling with a significant rise in unemployment as latest data from the National Bureau of Statistics (NBS) unveiled a surge in the unemployment rate to 5.0% in the third quarter of 2023. This marks a notable increase from the previous quarter’s rate of 4.2%, painting a concerning picture of the country’s job market dynamics.

Released on Monday, the Labour Force Survey report highlighted various key indicators shedding light on the state of employment in Africa’s largest economy. The labour force participation rate, measuring the proportion of the working-age population actively engaged in the labour force, saw a decline to 79.5% in Q3, down from 80.4% in the preceding quarter.

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Among the employed population, the report revealed a decrease in the employment-to-population ratio, dropping to 75.6% in Q3. Notably, the majority of workers, approximately 87.3%, were self-employed during this period, indicating a prevalent reliance on entrepreneurial endeavors for income generation.

The challenges extend beyond the general populace to educated segments of society, as evidenced by the unemployment rate among individuals with post-secondary education standing at 7.8% in Q3. Furthermore, the youth demographic, aged 15-24 years, faced a particularly tough job market, with an unemployment rate of 8.6%, reflecting a marginal increase from the previous quarter.

Expressing concerns over the accuracy of the data, the Nigerian Labour Congress voiced skepticism, asserting that the figures did not accurately depict the prevailing realities on the ground. These sentiments were echoed by global audit and tax advisory firm, KPMG, which had previously projected a further rise in Nigeria’s unemployment rate to 40.6%, compared to 2022’s figure of 37.7%.

As Nigeria navigates these challenges, policymakers and stakeholders face the urgent task of implementing measures to address the growing unemployment crisis and foster economic growth and stability.