Kehinde Fajobi
The unemployment rate in Nigeria decreased to 4.3% in the second quarter of 2024 (Q2 2024), down from 5.3% in the first quarter (Q1 2024), according to the National Bureau of Statistics (NBS).
Prince Adeyemi Adeniran, Statistician General of the Federation, disclosed the figures in a press statement on Monday, revealing that the drop in unemployment was a notable improvement.
He said, “The unemployment rate during the period was 4.3 per cent, which shows a decrease compared to the rate recorded in Q1 2024 (5.3 per cent).”
Unemployment rates varied by education and age group.
Among individuals with upper-secondary education, unemployment stood at 8.5%, while youths aged 15-24 and 25-34 years experienced the highest unemployment rates at 6.5% each.
Urban unemployment in Q2 2024 was 5.2%, a reduction from 6% in Q1 2024, while rural unemployment fell to 2.8% from 4.3%.
Adeniran also noted that wage employment accounted for 14.4% of total employment in Q2 2024, slightly down from 16% in Q1 2024.
Informal employment, which includes those working in agriculture and the informal sector, was recorded at 93% in Q2 2024, a modest increase from 92.7% in the previous quarter.
In rural areas, informal employment was particularly high at 97.5%, while in urban areas, it was 90%.
The rate of time-related underemployment, which refers to people working fewer than 40 hours a week but willing to work more, stood at 9.2% in Q2 2024, a decrease from 10.6% in Q1 2024.
Additionally, the survey gathered data on youth not engaged in employment, education, or training (NEET), with the NEET rate for 15-24-year-olds dropping to 12.5% in Q2 2024, compared to 14.4% in Q1.
The labour force participation rate rose to 79.5% in Q2 2024, up from 77.3% in Q1.
Men had a participation rate of 79.9%, while women stood at 79.1%. Participation was notably higher in rural areas (83.2%) compared to urban areas (77.2%).
Adeniran also introduced the enhanced methodology for data collection, stating, “Following the review of Nigeria Labour Force Survey methodological processes for conducting Labour Force Statistics in line with international best practices, NBS has been releasing consistently the official labour force statistics for the country since Q4 2022.”
The new approach, which uses GPS-enabled electronic collection, is expected to improve data quality and provide more relevant indicators for policy-making.
The NBS hopes that the refined methodology will support better design and monitoring of labour market policies.