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| Nigeria, despite being Africa’s largest economy, continues to grapple with a persistent unemployment problem. The Unemployment rate increased to 5.3% in the first quarter of 2024 from 5.0% in Q3 2023. The country’s unemployment rate, while fluctuating, remains persistently high, impacting both youth and adults. This is exacerbated by factors such as limited job opportunities, inadequate skills development, and economic instability. While there was a slight improvement in the overall unemployment rate and time-related underemployment, the labour force participation rate and employment-to-population ratio declined, indicating a weakening labour market. |
 Source: Comercio Partners | NBS |
| Key Findings•Decreasing Labour Force Participation: The labour force participation rate fell from 79.5% to 77.3%, suggesting a decline in the number of people actively seeking work. •Weakening Employment: The employment-to-population ratio decreased from 75.6% to 73.2%, indicating a decline in the proportion of the working-age population employed. •Improved Unemployment and Underemployment: The combined unemployment and time-related underemployment rate decreased from 17.3% to 15.3%, suggesting a slight improvement in labour market conditions. •Rising Wage Employment: The proportion of workers in wage employment increased from 12.7% to 16.0%, indicating a shift towards wage-based work. •Educational Disparities: The unemployment rate among persons with post-secondary education remained higher than the overall average, at 9.0%. •Youth Unemployment: While youth unemployment declined slightly, it remained above the overall average at 8.4%. •Urban-Rural Divide: The unemployment rate in urban areas remained unchanged, while time-related underemployment decreased in Q1 2024. •Subsistence Agriculture: 4.5% of the working-age population was engaged in subsistence agriculture, indicating a significant portion of the population reliant on traditional agricultural practices. •Rising NEET Rate: The NEET rate increased, suggesting a growing number of young people not in education, employment, or training. |
