Unemployment rate drops to 4.3% in Q2 2024 – NBS

The National Bureau of Statistics (NBS) has reported a decline in Nigeria’s unemployment rate to 4.3% in the second quarter of 2024, reflecting improved labor market conditions.

The latest figures, released on Monday, show a decrease from 5.3% recorded in Q1 2024 and 5.0% in Q3 2023, signaling gradual recovery.

The Labour Force Participation Rate rose to 79.5% in Q2 2024 from 77.3% in the previous quarter, indicating increased workforce engagement.

The Employment-to-Population Ratio also improved significantly, climbing to 76.1% from 73.2% in Q1 2024.

The report highlights the dominance of self-employment, which accounted for 85.6% of total employment, up from 84% in the previous quarter. Informal employment also rose slightly to 93.0%, underscoring the economy’s reliance on informal jobs.

Urban unemployment dropped to 5.2% from 6.0% in Q1, while rural unemployment stood at 2.8%, down from 4.3%. This disparity reflects the role of agriculture and informal activities in rural employment compared to urban areas’ dependence on formal jobs.

The youth unemployment rate (ages 15–24) decreased significantly to 6.5%, compared to 8.4% in Q1 2024. However, gender disparities persist, with female unemployment at 5.1% compared to 3.4% for males.

“The unemployment rate is defined as the share of the labor force not employed but actively searching for and available for work,” the report stated, stressing the need for targeted, inclusive policies to address employment gaps.

Time-related underemployment, which measures workers seeking additional hours, also declined to 9.2% in Q2 2024 from 10.6% in Q1.

Labour underutilisation metrics showed improvement, with LU2 (unemployment and time-related underemployment) dropping to 13.0% from 15.3% in the previous quarter.

LU3 and LU4 metrics, including potential labor force participation, fell to 5.9% and 14.5%, respectively.

The data underscores ongoing efforts to improve labor market conditions and highlights the need for sustained focus on job creation and inclusivity.