Discouraged job seekers in Nigeria consist of 3.8% females and 3.4% males- Report

In the first quarter of 2024, the rate of discouraged job seekers in Nigeria stood at 3.4 per cent among males and 3.8 per cent among females.

This marks an increase compared to the 3.1 per cent rate recorded in the third quarter of 2023. Additionally, in 2024, 3.6 per cent of individuals outside the labour force were classified as discouraged job seekers.

These figures come from a report containing findings from the Nigeria Labour Force Survey (NLFS) for the first quarter of 2024.

Discouraged job seekers are defined as individuals who, despite desiring employment and being available for work, are not part of the labour force. They did not actively seek employment during the reference period due to various market-related reasons, which include:

1. Previous unsuccessful attempts to secure a suitable job
2. Lack of experience or qualifications
3. Absence of job opportunities matching their skills
4. Being deemed too young or too old by potential employers
5. Disability or inability to work

The increase in the rate of discouraged job seekers indicates that more individuals are becoming disheartened by the job market, causing them to refrain from actively seeking employment.

How the decline in labour force participation is caused by discouraged job seekers

The Nigerian labour market in the first quarter of 2024 presents a complex picture, with a combination of declines in labour force participation, a slight rise in unemployment rates, and shifts in employment characteristics.

These changes are closely linked to the growing number of discouraged job seekers, whose numbers have been steadily increasing. The findings from the Nigeria Labour Force Survey (NLFS) for the first quarter of 2024 reflects why this is so.

During Q1 2024, Nigeria’s labour force participation rate dropped to 77.3 per cent, down from 79.5 per cent in Q3 2023. This decline is linked to the rising number of discouraged job seekers, who refrain from seeking employment due to factors like previous unsuccessful attempts, lack of qualifications, or perceived barriers such as age discrimination or disability.

The employment-to-population ratio also fell from 75.6 per cent to 73.2 per cent, while the unemployment rate increased slightly from 5.0 per cent to 5.3 per cent, especially among those with post-secondary education (9.0 per cent). Although youth unemployment slightly decreased to 8.4 per cent, challenges remain for young people, particularly due to inexperience or lack of opportunities.

Urban unemployment remained steady at 6.0 per cent, while underemployment decreased from 12.3 per cent to 10.6 per cent, showing under-utilisation in the workforce. Wage employment saw an encouraging increase from 12.7 per cent to 16 per cent, although subsistence agriculture participation remained at 4.5 per cent, indicating continued reliance on informal work, particularly in rural areas.

The NEET rate, representing young people not in education, employment, or training, increased from 13.7 per cent to 14.4 per cent, reflecting growing youth disengagement from both the labour market and educational opportunities.