Unemployment Rate Reduced to 4.3% in 2024 -National Bureau of Statistics

The National Bureau of Statistics (NBS) has reported a significant reduction in Nigeria’s unemployment rate, which fell to 4.3% in Q2 2024, compared to 5.3% in Q1. This decline reflects progress over the last year, as the unemployment rate was estimated to be above 6% in mid-2023.

Key contributors to this decrease include a rise in informal and self-employment, economic recovery post-COVID-19, and targeted interventions for youth and women.

The rural unemployment rate dropped to 2.8% in Q2, highlighting the role of agriculture and subsistence activities in labor absorption. Urban unemployment also fell to 5.2%, reflecting growth in informal trade and small businesses. Youth unemployment, a persistent challenge, decreased from 8.4% in Q1 to 6.5% in Q2. The employment-to-population ratio rose to 76.1%, further showcasing increased engagement in economic activities.

These figures are influenced by the NBS’s updated methodology for calculating unemployment, aligning with international standards. Under this framework, individuals engaged in any form of economic activity, even for as little as an hour a week, are classified as employed. This shift has brought more focus to the issue of underemployment, which remains a significant concern.

While the data indicates progress, deeper challenges persist. Over 93% of Nigerians in employment are engaged in the informal sector, which is characterized by low wages, job insecurity, and limited benefits. Women and individuals in rural areas disproportionately occupy these roles, often due to limited access to education and formal job opportunities.

Efforts to sustain the progress must focus on creating stable, formal jobs, improving skills training, and supporting small business growth. Investments in infrastructure and economic diversification, particularly outside agriculture, are also critical for driving long-term improvements.