Nigeria is grappling with a rising jobless rate with unemployment soaring to 5.3 percent in the first quarter (Q1) of 2024 from 4.1 percent reported in the corresponding period of 2023, according to the National Bureau of Statistics (NBS).
The increase in jobless rates, according to many analysts, was caused by a worsening business environment, leading to the exit of more than 10 multinationals and total or partial closure of local businesses.
Rising energy cost, currency devaluation, high inflationary pressures and hiking interest rates were among the causes of business closures, dampening employment opportunities.
The unemployment rate rose by 19.1 percent in four years, moving from 14.2 percent in 2016 to 33.3 percent in 2020, while the underemployment rate accelerated from 21 percent to 22.8 percent.
“But based on a new methodology that the NBS recently migrated to, unemployment rate in 2024’Q1 was 5.3 percent and time-related underemployment rate was 10.6 percent,” Analysts and Data Services and Research (ADSR) said in its recent report.
Here are the 10 numbers from the report
Only 7.3% Nigerians are in the formal sector
With only 7.3 percent of Nigerians in the formal sector in a country with a total working age population of 116.60 million, according to ADSR, it indicates that the majority of the workforce lacks access to structured employment with stable wages, benefits, and job security.
This situation presents several challenges and implications for the economy and the country. Some of which are limited tax revenue, low productivity and development challenges.
14.5% of youths were not in education, employment or training
The labour force report indicated that 14.5 percent of Nigerian youths are not in education, employment, or training (NEET), signaling young people disengagement from activities that could contribute to their personal, professional development and overall growth of the country.
Olusegun Mimiko, a former governor of Ondo state, said in a forum that Nigeria’s greatest asset is its large youth population of 70 percent of total population and harnessing it could transform the nation.
Not in formal or non-formal education could lead to wasted potential not harnessed, exposing them to such vulnerabilities like cybercrime, kidnapping and other vices to keep afloat.
92.2 % workers are in the informal sector
The report paints a sobering picture: 92.2 percent of Nigerians are in the informal sector, meaning that a vast majority of the country’s workforce is engaged in jobs or businesses that are not formally registered, regulated, or taxed by the government.
It includes activities like street vending, small-scale farming, artisans, and other small businesses that operate without formal contracts, protections, or access to social security benefits.
This has a far reaching effect on the government’s efforts on widening the tax net for revenue shortfalls and it suggests a reliance on informal employment for livelihoods and highlights challenges related to job security, access to credit, and economic vulnerability.
Unemployment rate was highest in Abia State, lowest in Nasarawa
Of the 36 states in Nigeria, including the Federal Capital Territory, the south eastern Abia state has the highest unemployment rate at 18.7 percent, portraying a slowing economic activities.
It’s however lowest in Nasarawa with 0.5 percent, followed by Sokoto
1.2 percent and Benue 1.6 percent. These states are food-growing regions of the country, indicating that more of the working age are into farming.
27% of Nigeria’s total labour force lacks formal education
According to the latest labour force data, 27 percent of the 88.94 million Nigerians had no formal education,
This stark reality “may limit job opportunities and skills development” in this fast-paced evolving world.
While the country is grappling with rising poverty levels and slowing economic growth, this number highlights the need for investments in education and vocational training to equip the labor force with the skills needed for more productive and higher-paying jobs, ultimately contributing to Nigeria’s economic growth and development.
Nigerians are most in the agricultural sector with 30.1%
Agriculture is the largest source of employment in the country as 30.1 percent of Nigerians are working in this sector, highlighting its potential if well leveraged.
The large workforce in agriculture presents an opportunity for economic growth if investments are made in modernizing farming techniques, improving infrastructure, and providing access to credit, training, and technology.
Workers are also engaged in wholesale and retail with 27.5 percent workforce, manufacturing 12.7 percent and accommodation and food services accounting for 7.8 percent employment.
74.4% Nigerian workers are in the private sector
The report revealed that there are more Nigerian workers in the private sector than in public employment. While the public sector employs a staggering 25.6 percent of the entire labour force, the private sector boasts as the largest employer of labour with 74.4 percent.
This reflects the need for the government to provide more soft landing for private sectors to thrive in order to improve job creation.
Nigerians are employed the most in services and sales
Many working Nigerians are mostly employed in the services and sales sub-sector of the economy, polling a cumulative 33.8 percent workers.
Next to services and sales is farming where 28.1 percent working persons are employed, calling for more actions to be done to broaden the sub-sector for optimal outcomes.
Others are crafts and related trades workers with 14.4 percent; elementary occupations with 7 percent and plant and machinery workers with 6.4 percent.
Only 0.8 percent workers are in the managerial position
The report highlighted that of the almost 90 million Nigerians active in the labour force, just a paltry 0.8 percent are managers, indicating the acute shortage of formal education limiting opportunities.
1% of Nigeria’s labour force holds a PG certification
The labour force survey shows that while 13 percent of Nigerian workers hold a post secondary education certificate, just one percent goes further to acquire a postgraduate education.
This shows the level of disdain workers have for more education. However, it presents a disturbing trend, no wonder only 0.8 percent gets to managerial level.
