The National Bureau of Statistics (NBS) said in its latest report that Nigeria’s unemployment rate declined to 4.3% in the second quarter of 2024, marking a significant improvement from 5.3% in Q1 2024.
The figures signal a gradual recovery in the labour market, further bolstered by improved workforce participation and employment metrics.
Labour Market Indicators Show Gains
The Labour Force Participation Rate rose to 79.5%, up from 77.3% in the previous quarter, indicating higher workforce engagement.
The Employment-to-Population Ratio also saw notable growth, climbing to 76.1% in Q2 2024 compared to 73.2% in Q1 2024.
“This data demonstrates a stronger integration of the working-age population into productive activities,” the NBS noted.
Self-Employment and Informal Jobs Dominate
Self-employment remained a cornerstone of the Nigerian labour market, accounting for 85.6% of total employment, up from 84% in Q1. Informal employment also edged higher, making up 93% of total jobs.
Urban-Rural Employment Dynamics
Urban unemployment fell to 5.2% from 6.0% in Q1 2024, while rural areas recorded an even lower unemployment rate of 2.8%, down from 4.3%. The disparity underscores the critical role of agriculture and informal activities in rural employment, contrasting with the formal and service-driven urban job market.
The youth unemployment rate (ages 15–24) dropped significantly to 6.5%, compared to 8.4% in the previous quarter.
However, the report highlighted gender disparities, with the unemployment rate for females at 5.1%, compared to 3.4% for males.
“This gender gap underscores the need for inclusive policies to address structural inequalities in employment opportunities,” the NBS report stated.
Underemployment and Labour Utilisation Improve
Time-related underemployment, which measures workers seeking additional hours, dropped to 9.2% in Q2 2024 from 10.6% in Q1. Broader labour underutilisation metrics also improved:
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LU2 (Unemployment and Time-Related Underemployment): Decreased to 13.0% from 15.3%.
LU3 and LU4 Metrics (Potential Labour Force Participation): Declined to 5.9% and 14.5%, respectively.
Economic Recovery Bolsters Employment
The improvement in unemployment and underemployment rates reflects Nigeria’s ongoing economic recovery, supported by reforms to enhance productivity and workforce participation.
However, challenges persist, particularly in gender disparities and the over-reliance on informal jobs. Policymakers will need to address these gaps to sustain momentum and ensure equitable growth.
Looking Ahead
With a strengthening labour market and improved metrics across key indicators, Nigeria is on a path toward more inclusive economic growth. However, addressing gender imbalances, diversifying employment opportunities, and formalizing the informal sector will be critical to sustaining this progress.
Global financial Digest
