In a recent report released for the third quarter of 2023, Nigeria’s unemployment rate has surged to 5.0%, marking a notable increase from the 4.2% recorded in the previous quarter of Q2 2023. This latest data sheds light on the country’s evolving economic landscape, revealing disparities across gender, geography, educational attainment, and employment types.
Breaking down the statistics, the unemployment rate among men stands at 4.0%, while among women, it rises to 6.0%. Urban areas report a higher unemployment rate of 6.0% compared to 4.0% in rural regions, emphasizing the challenges faced by Nigeria’s urban workforce. Youth, in particular, face a significant hurdle, with an unemployment rate soaring to 8.6%.
Educational attainment plays a crucial role in employment prospects, with varying unemployment rates across different levels of education. Individuals with post-secondary education face the highest unemployment rate at 7.8%, followed by those with upper secondary education at 6.3%, lower secondary education at 5.5%, primary education at 4.8%, and those with no formal education at 2.7%.
The report also delves into informal employment trends, revealing a decrease in the proportion of employed individuals engaged in informal work to 92.3% in Q3 2023, down from the previous quarter’s 92.7%. Women are disproportionately represented in informal employment, with rural areas reporting a higher prevalence of informal work compared to urban regions.
Self-employment remains a dominant form of employment in Nigeria, with 87.3% of employed individuals being self-employed. Gender disparities persist in self-employment, with 90.5% of women primarily engaged in self-employment compared to 84.2% of men. Rural areas exhibit a higher prevalence of self-employment compared to urban areas, highlighting the importance of entrepreneurship in rural economies.
Labour force participation stands at 79.5% in Q3 2023, down from the previous quarter’s 80.4%. Men exhibit a higher participation rate at 80.9% compared to women at 78.2%. Rural residents are more actively engaged in labour activities compared to their urban counterparts.
Overall, the latest unemployment statistics underscore the multifaceted challenges facing Nigeria’s labour market, requiring targeted interventions to address unemployment, particularly among vulnerable demographics such as youth and women. Efforts to promote inclusive economic growth and create job opportunities across various sectors are essential for fostering a more resilient and sustainable workforce in Nigeria.
Credit: Nairametrics
