BTA2023 Nigeria’s unemployment rate declined to 4.3 percent in the second quarter of 2024, signalling improved labour market conditions.
According to the latest report released on Monday by the National Bureau of Statistics, this marked a decrease from the 5.3 percent recorded in Q1 2024 and reflected a gradual recovery from the 5.0 percent in Q3 2023.
The Labour force participation rate rose to 79.5 percent, up from 77.3 percent in the previous quarter, highlighting increased workforce engagement.
The employment-to-Population Ratio also showed significant improvement, climbing to 76.1 per cent in Q2 2024 from 73.2 per cent in Q1 2024.
This indicates that a higher proportion of the working-age population was gainfully employed during the period.
Also, self-employment remained dominant, accounting for 85.6 percent of total employment, an increase from 84 percent in the preceding quarter.
Informal employment also rose slightly to 94.0 percent, highlighting the economy’s reliance on informal jobs.
Urban unemployment stood at 5.2 percent, a reduction from 6.0 percent in Q1 2024.
However, rural areas recorded an even lower unemployment rate of 2.8 percent, compared to 4.3 percent in the previous quarter.
This disparity highlights the continued role of agriculture and informal activities in rural employment, contrasting with the urban dependence on formal and service-driven jobs.
The youth unemployment rate (ages 15–24) dropped significantly to 6.5 percent, compared to 8.4 percent in Q1 2024.
The report further revealed gender disparities, with the unemployment rate for females at 5.1 percent, compared to 3.4 percent for males.
This suggests a need for targeted gender-inclusive policies to bridge the employment gap.
The report read, “The unemployment rate is defined as the share of the labour force not employed but actively searching for and available for work.
“Unemployment is one of the components of labour underutilisation. The unemployment rate for Q2 2024 was 4.3 percent, showing an increase of 0.1 percentage point compared to the same period last year.
“The unemployment rate among males was 3.4 percent and 5.1 percent among females.
“By place of residence, the unemployment rate was 5.2 percent in urban areas and 2.8 percent in rural areas. The youth unemployment rate was 6.5 percent in Q2 2024, showing a decrease from 8.4 percent in Q1 2024.”
Time-related underemployment, which measures workers seeking additional hours, dropped to 9.2 percent in Q2 2024 from 10.6 percent in Q1.
Labour underutilisation metrics also improved, with LU2 (unemployment and time-related underemployment) decreasing to 13.0 percent from 15.3 percent in the previous quarter.
LU3 and LU4 metrics, which include potential labour force participation, also recorded declines to 5.9 percent and 14.5 percent, respectively.
