Nigeria’s unemployment rate climbed to 5% in the third quarter of 2023, coinciding with a deepening cost-of-living crisis triggered by the government’s elimination of the fuel subsidy.
This increase, reported by the National Bureau of Statistics, marks a setback for the nation already struggling with decades of high unemployment. Even so, the figure would be seen by many as hardly reflecting the reality.
Until last August, Nigeria’s unemployment rate was put at 33 percent before the statistics bureau reported a 4.1 percent using a new calculation methodology that classified people as employed if they worked for just one hour for profit or pay, compared to required 20 hours in the old template.
Despite a decline from the record high of 33% in Q4 2020 following the revision in calculation methodology, underemployment remains a persistent issue.
The data released by the NBS late Monday shows a worrying trend, particularly among young adults. The unemployment rate for individuals aged 15-24 jumped to 8.6% from 7.2%, highlighting the challenges young Nigerians face in entering the workforce. Additionally, urban unemployment edged up slightly to 6% from 5.9%.
With 87% of the workforce self-employed and only 12.7% in formal wage employment, many Nigerians struggle with unstable and often low-paying work.
The informal sector, encompassing activities outside the formal economy, continues to dominate, accounting for 92.3% of employed individuals. This lack of formalization limits worker protections and access to benefits, contributing to the precariousness of livelihoods for many.
There was a slight dip in workforce participation, from 80.4% to 79.5%, another area of concern for Nigerians seeking employment.
Hardship
Nigerians are facing a severe economic hardship caused by high inflation and a devalued and unstable naira. Both problems have forced many businesses to close or, cut back on operations, leaving many without jobs.
Discover more from Pluboard
Subscribe to get the latest posts sent to your email.