The National Bureau of Statistics (NBS) reported that Nigeria’s unemployment rate increased to 5.3% in the first quarter (Q1) of 2024, up from 5.0% in the third quarter (Q3) of 2023.
In its report released on Tuesday, September 24, the NBS defined unemployment as the proportion of the labour force actively seeking work but unable to find employment. The report highlighted differences in unemployment rates based on gender and location, with men experiencing a 4.3% unemployment rate and women facing a higher rate of 6.2%. Unemployment in urban areas stood at 6.0%, while rural areas had a lower rate of 4.3% for the same period.
While the overall unemployment rate increased, the report noted a slight improvement in youth unemployment, which fell from 8.6% in Q3 2023 to 8.4% in Q1 2024.
Additionally, the NBS reported a drop in Nigeria’s employment-to-population ratio, which fell to 73.2% in Q1 2024 from 75.6% in Q3 2023. This ratio, which measures the percentage of the working-age population that is employed, showed 74.2% of men and 72.3% of women were employed in Q1 2024.
In urban areas, the employment-to-population ratio was 69.5%, while rural areas had a higher ratio of 78.9%, a slight decrease from the 71.1% and 80.7% recorded in Q3 2023, respectively.
The NBS also highlighted a shift in Nigeria’s labour market, with self-employment gradually declining. In Q1 2024, self-employed individuals made up 84% of the workforce, down from 86% in the same period the previous year. This change reflects a transition to more formal employment opportunities, as the share of salaried workers increased to 16% in Q1 2024, compared to 12.7% in Q3 2023.
Gender disparities were evident in self-employment rates, with 87.9% of women engaged in self-employment compared to 79.9% of men. Rural areas showed significantly higher self-employment rates (91.9%) compared to urban areas (78.2%).
This NBS report offers a comprehensive analysis of Nigeria’s labour market in Q1 2024, highlighting unemployment trends and structural changes in employment.
