Politics

Nigeria’s Unemployment Rate Rises to 5.3% in Q1 2024

By Oyinkansayo Wole-Bodunde.

Nigeria’s unemployment rate has risen to 5.3% in the first quarter of 2024, up from 5.0% in the third quarter of 2023, according to the National Bureau of Statistics (NBS).

This increase is attributed to various factors, including the exit of multinational companies and factory closures, which have led to significant job losses across different industries.

The NBS disclosed this in its Nigeria Labour Force Survey Report, stating, “The unemployment rate for Q1 2024 was 5.3%, showing an increase from 5.0% recorded in Q3 2023.” The report also revealed that the unemployment rate among males was 4.3%, while females recorded a rate of 6.2%. Urban areas had an unemployment rate of 6.0%, and rural areas had a rate of 4.3%.

Regarding youth unemployment, the NBS reported a rate of 8.4% in Q1 2024, showing a decrease from 8.6% in Q3 2023. Unemployment based on educational attainment shows that the unemployment rate among persons with post-graduate education was 2.0%, 9.0% among those with post-secondary education, 6.9% for those with secondary education, and 4.0% among those with primary education in Q1 2024.

The share of underemployed Nigerians declined to 10.9% in Q1 2024 from 12.2% in Q1 2023. Underemployment is defined as the share of the employed population who work less than 40 hours per week but are willing and available to be engaged for additional work hours. The underemployment rate among men was 8.5%, while the rate among women was 12.5%. Urban areas recorded an underemployment rate of 9.7%, and rural areas had a rate of 11.8%.

The NBS also reported that 73.2% of Nigeria’s working-age population was employed in Q1 2024, down from 75.6% in Q3 2023. Disaggregating by sex, the employment-to-population ratio was 74.2% for males and 72.3% for females in Q1 2024. Additionally, the employment-to-population ratio in urban areas was 69.5%, and 78.9% in rural areas.

Meanwhile, the Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate (MPR) by 50 basis points to 27.25%. Private sector operators, including the Nigerian Association of Chambers of Commerce Industry, Mines and Agriculture, Association of Small Business Owners of Nigeria, Centre for the Promotion of Private Enterprise, and other economic experts have warned against the increase in MPR, stating that it will hinder investment and economic growth, leading to higher borrowing costs and potential bad debt for financial institutions.

An analyst at Renaissance Africa Company, Mr. Ejike Nwuba, disagreed with the latest unemployment figures, noting that the reality on the ground was far worse than the 5.3% rate released by the NBS.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button