Nigeria’s unemployment rate has decreased to 4.3% in the second quarter of 2024, reflecting positive trends in the country’s labour market. According to the National Bureau of Statistics (NBS), this marks a drop from 5.3% in Q1 2024 and a recovery from 5.0% in Q3 2023.
The report reveals several key improvements: the Labour Force Participation Rate rose to 79.5%, up from 77.3% in the previous quarter, indicating higher workforce engagement. Additionally, the Employment-to-Population Ratio improved significantly, reaching 76.1% in Q2 2024, compared to 73.2% in Q1 2024, showing that a greater portion of the working-age population is now employed.
Self-employment continues to dominate the job market, with 85.6% of total employment attributed to this sector, up from 84% in the prior quarter. Informal employment also saw a slight increase, rising to 93.0%, underscoring the ongoing reliance on informal jobs in the Nigerian economy.
The unemployment rate in urban areas decreased to 5.2% from 6.0% in Q1 2024, while rural areas saw a more pronounced drop to 2.8% from 4.3%. This reflects the significant role of agriculture and informal activities in rural employment compared to the urban reliance on formal and service-based jobs.
Youth unemployment (ages 15–24) also improved, dropping to 6.5% from 8.4% in Q1 2024. However, the report highlights gender disparities in the labour market, with female unemployment at 5.1%, compared to 3.4% for males, suggesting a need for gender-targeted employment policies.
Additional data on labour underutilisation shows positive trends: time-related underemployment dropped to 9.2% in Q2 2024 from 10.6% in Q1, and overall labour underutilisation (LU2) decreased to 13.0% from 15.3%. Metrics for LU3 and LU4, which reflect potential labour force participation, also showed declines, reaching 5.9% and 14.5%, respectively.
Overall, the latest NBS report suggests a gradual but steady recovery in Nigeria’s labour market, with a notable reduction in unemployment and improvements in workforce engagement across multiple sectors.
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