Nigeria’s Unemployment Rate Drops to 4.3% in Q2 2024, Says NBS

Nigeria’s Unemployment Rate Drops to 4.3% in Q2 2024, Says NBSThe National Bureau of Statistics (NBS) has revealed a significant improvement in Nigeria’s labour market, with the unemployment rate dropping to 4.3% in the second quarter (Q2) of 2024. This marks a steady decline from 5.3% in the first quarter (Q1) of the year and 5.0% in the third quarter (Q3) of 2023.Released on Monday, the report highlights encouraging trends in workforce participation and employment-to-population ratios, signaling recovery in the labour market amid Nigeria’s evolving economic challenges.Labour Market Indicators Show ImprovementThe Labour Force Participation Rate increased to 79.5% in Q2 2024, up from 77.3% in Q1, suggesting that more Nigerians are actively engaged in the labour market. Similarly, the Employment-to-Population Ratio—a measure of the working-age population gainfully employed—rose to 76.1% in Q2 from 73.2% in Q1.According to Dr. Samuel Adeyemi, an economist and labour expert, these metrics reflect “a positive response to government initiatives aimed at boosting job creation through entrepreneurship and sector-specific interventions.”Self-employment continues to dominate Nigeria’s employment landscape, accounting for 85.6% of total employment in Q2, up from 84% in Q1. Informal employment also rose slightly to 93.0%, further underscoring the economy’s reliance on informal and small-scale activities.Urban and Rural DisparitiesThe report showed contrasting trends in urban and rural areas. Urban unemployment dropped to 5.2% in Q2 from 6.0% in Q1, while rural unemployment fell to 2.8%, a significant improvement from 4.3% in the previous quarter.”The disparity between urban and rural unemployment underscores the continued reliance on agriculture and informal activities in rural areas,” said agricultural economist Professor Grace Olufemi. “While urban areas focus on formal and service-driven jobs, rural regions benefit from the stability of subsistence farming and small-scale trading.”Youth and Gender DisparitiesYouth unemployment (ages 15–24) also showed notable improvement, falling to 6.5% in Q2 2024 from 8.4% in Q1. However, the report flagged gender disparities, with unemployment among females at 5.1%, compared to 3.4% for males.“This gap reflects systemic challenges that limit women’s access to employment opportunities,” said gender policy advocate, Amina Yusuf. She added, “Targeted policies, such as better access to finance and skills training for women, are essential to closing this gap.”Time-related underemployment, which measures workers seeking additional hours, dropped to 9.2% in Q2 from 10.6% in Q1. Labour under-utilisation indicators also showed improvements: LU2 (which combines unemployment and underemployment) declined to 13.0% from 15.3%, while LU3 and LU4, which include potential labour force participation, fell to 5.9% and 14.5%, respectively.Dr. Ahmed Sule, a labour market analyst, emphasized the significance of these metrics. “The decline in underemployment suggests that people are not only finding jobs but also securing positions with reasonable hours and pay,” he noted.Experts attribute the positive trends to a mix of government policies and private sector initiatives. The Nigerian government has ramped up efforts to diversify the economy, focusing on agriculture, technology, and small and medium enterprises (SMEs). Programs such as the Youth Entrepreneurship Support Scheme and the National Social Investment Program have played a role in reducing youth unemployment.However, challenges remain. The dominance of informal employment, which accounts for 93% of total jobs, highlights the vulnerability of Nigeria’s workforce to economic shocks and limited social protections.“The government must prioritize creating enabling environments for businesses to thrive,” said Dr. Sule. “This includes addressing infrastructure deficits, improving power supply, and ensuring policy consistency.”While the drop in unemployment is a positive development, experts caution against complacency. Efforts must focus on ensuring that all demographics, particularly women and youths, benefit from these improvements.In the words of Ms. Yusuf, “Growth must be inclusive. Only then can we build a resilient and equitable labour market that serves all Nigerians.”The NBS report offers a glimmer of hope for Nigeria’s labour market, but sustaining this progress will require a collective effort from policymakers, private sector players, and civil society. For now, the declining unemployment rate stands as a testament to the potential for recovery in Africa’s largest economy.