The National Bureau of Statistics (NBS) has revealed in its Nigeria Labour Force Survey (NLFS) for Q2 2023 that the unemployment rate in Nigeria increased to 4.2% during the second quarter of 2023. Released in Abuja, the report provides key insights into the dynamics of the labor market in the country and highlights areas of concern such as rising unemployment among youth, gender disparities, and urban-rural differences in employment patterns.

The NBS defines the unemployment rate as the proportion of the labor force that is actively searching for work but remains unemployed. According to the report, the unemployment rate among individuals with post-secondary education stood at 8.0%, while those with upper secondary education experienced a 5.4% unemployment rate. Lower secondary education holders faced an unemployment rate of 3.7%, while those with primary education recorded 3.0%, and individuals with no formal education had a 2.5% unemployment rate.

Youth unemployment continues to be a critical issue, with the unemployment rate for individuals aged 15-24 rising to 7.2% in Q2 2023 from 6.9% in the previous quarter. Gender disparities were also evident, with unemployment rates at 3.5% for men and 5.9% for women.

The report further highlighted geographical differences in unemployment, noting that urban areas had an unemployment rate of 5.9%, an increase from 5.4% in Q1 2023. Conversely, rural areas experienced a slight decline, with the unemployment rate dropping from 2.9% in Q1 2023 to 2.5% in Q2 2023.

Time-related underemployment, which measures the proportion of individuals working fewer than 40 hours per week but willing to work more, was reported at 11.8%, a slight improvement from 12.2% in Q1 2023. This remains a critical factor in understanding the broader employment challenges in Nigeria, where many are employed but not fully utilized.

The labor force participation rate, which measures the proportion of the working-age population that is either employed or actively seeking work, was 80.4% in Q2 2023, slightly higher than the 79.9% recorded in the previous quarter. The participation rate among men was higher at 82.1%, compared to 78.8% among women. Urban participation was 78.4%, while rural participation was 82.6%.

Key findings of the report include:

• An employment-to-population ratio of 77.1% in Q2 2023.
• The combined rate of unemployment and time-related underemployment stood at 15.5% in Q2 2023.
• Approximately 88% of workers in Q2 2023 were in self-employment, while only 12% were in wage employment.
• The informal employment rate was 92.7%, reflecting the prevalence of informal work arrangements in Nigeria.

The NBS explained that this report is the third to use revised methodology for labor market statistics, aligning with international standards. It stressed the importance of the NLFS for providing valuable data to guide government policies and programs aimed at addressing employment challenges, boosting economic productivity, and alleviating poverty.

As labor is a key factor of production and a major determinant of economic systems globally, the NBS emphasized the need for regular monitoring of employment trends in Nigeria. The NLFS plays a crucial role in supporting policy formulation and providing a foundation for international comparisons, using indicators based on resolutions from the 19th International Conference of Labour Statisticians (ICLS 2013).

The comprehensive insights offered by the NLFS are essential for understanding the evolving labor market landscape in Nigeria and for implementing sound economic policies that promote job creation and enhance the overall stability of the economy.