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Nigeria’s unemployment rate has seen a dramatic drop from 33.1% reported in March 2021 to 4.1% for the first quarter of 2023 and 5.3% in the 4th quarter of 2022.
The National Bureau of Statistics (NBS) released its employment data for the first quarter of 2023, indicating a substantial improvement in the job market.
As per the newly-revised Nigeria Labour Force Survey (NLFS), which now aligns with International Labour Organisation (ILO) guidelines, the unemployment rate in the country has been reported at a promising 5.3%.
New Methodology – The NBS enhanced its data collection process for the NLFS by sampling 35,520 households across Nigeria. The new approach provides for ongoing data collection throughout the year, delivering national-level results on a quarterly basis, and state-level results annually.
Key Highlights
Employment Rates on the Rise – The data shows an uptick in the percentage of working-age Nigerians (defined as persons aged 15 years and above) who were employed: 73.6% in Q4 2022 and 76.7% in Q1 2023. This indicates that a majority of Nigerians were engaged in some form of employment for at least one hour per week, earning pay or profit.
Underemployment and Wage Employment – The rate of underemployment, defined as those working less than 40 hours a week but willing to work more, stood at 13.7% in Q4 2022 and declined to 12.2% in Q1 2023. The percentage of those in wage employment was 13.4% in Q4 2022, dropping slightly to 11.8% in Q1 2023.
Gender and Demographic Insights – About one-third of employed persons (36.4% in Q4 2022 and 33.2% in Q1 2023) worked fewer than 40 hours per week. This trend was more prevalent among women, individuals with lower educational qualifications, the youth, and those residing in rural areas.
Entrepreneurial Activities and Household Support – The majority of employed Nigerians operated their own businesses or engaged in farming, with 73.1% doing so in Q4 2022 and 75.4% in Q1 2023. A further 10.7% in Q4 2022 and 10.6% in Q1 2023 were involved in unpaid household businesses.
Apprenticeship and Internships – The report also highlighted that 2.6% of the employed population were engaged as apprentices or interns in Q4 2022, and this figure declined to 2.2% in Q1 2023.
Terms Clarified
The NBS report clarified several terms:
- Employed at work – Individuals who worked for pay or profit for at least one hour in the last 7 days.
- Employed temporarily – Those who typically work but were absent due to reasons like vacation or sick leave.
- Active search – Taking specific actions to look for paid work or start a business in the past month.
- Available to work – Being ready to start work either last week or in the next two weeks.