Nigeria’s Unemployment Rate Rises to 4.2% in Q2 – NBS

• Nigeria’s unemployment rate rises to 4.2% in Q2 2023, with a marginal increase from the revised methodology adopted in August
• Report shows 80.4% labour force participation, revealing 5.9% unemployment in urban areas, 2.5% in rural areas in Q2 2023

The National Bureau of Statistics (NBS) has reported an increase in Nigeria’s unemployment rate to 4.2 percent in the second quarter of 2023, following the bureau’s revised methodology adopted in August.

Under the revised methodology, employed persons are individuals who have worked for at least one hour in the last seven days. The newly released report indicates a marginal uptick of 0.1 percent from the 4.1 percent recorded in the first quarter of 2023.

According to the report, 80.4 percent of Nigeria’s labour force in the working-age population participated in the survey. The breakdown of the unemployment rate reveals 3.5 percent among men and 5.9 percent among women. Regarding location, urban areas recorded a 5.9 percent unemployment rate, while rural areas saw a 2.5 percent rate.

The unemployment rate for the 15-24 age group was 7.2 percent in the second quarter of 2023. The report also highlights that 88 percent of employed Nigerians are primarily self-employed, with the remaining 12 percent primarily engaged as employees. Notably, more women are self-employed than men.

Further insights from the report reveal an informal employment rate of 92.7 percent. Women, across all age groups, were found to have a higher rate of informal employment. The informality rate was particularly high among younger individuals (15-24) and those above 65. The rate of informal employment in rural areas was reported at 97.3 percent, while urban informality stood at 88 percent.

Education also played a role, with the report noting a negative association between educational qualification and informality. Individuals with higher qualifications were found to be less likely to engage in informal employment, with 99.6 percent of people with no formal education identified as being in informal employment.