Nigeria’s unemployment problem worsened in the second quarter of 2023 despite the government’s new methodology that significantly slashes the percentage of people without jobs.
Unemployment rate rose to 4.2% between April and June, from 4.1% in the previous quarter, the National Bureau of Statistics reported Thursday.
The NBS used its controversial “enhanced methodology” for the assessment, with people classified as employed if they work for just one hour for profit or pay, compared to 20 hours in the old evaluation.
The previous methodology reported 33.3% in the fourth quarter of 2020. That figure fell to 5.3% in the last quarter of 2022, the first time the NBS applied the new method, saying it aligned with international standards.
Former head of the statistics agency Yemi Kale criticised the adoption of the new template, saying it reflected more of “political thinking” than the Nigeria’s reality.
“Political thinking will make one push for international standards today & against it tomorrow depending on the agenda,” he said in August.
More data
The NBS said 88% of workers it measured were self-employed, with only 12% in salaried jobs.
Unemployment rate among young people (15-24 years) was 7.2%, from 6.9% in first quarter.
Informal employment rate was 92.7%.
Nigeria has faced its worst economic crisis in years with a 20-year high inflation and chronic shortage of foreign currency forcing businesses to close. Inflation worsened after the government in June removed petrol subsidy.
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