Nigeria’s unemployment rate increased to 5% in Q3, says NBS

The National Bureau of Statistics (NBS) on Monday revealed that for the third quarter of 2023, the unemployment rate surged to five per cent, marking a notable increase from the 4.2 per cent recorded in Q2 2023.

According to the report, among men, the unemployment rate stood at four per cent, while among women, it was six per cent. 

The report on ggeographically items disclosed that urban areas reported a six per cent unemployment rate compared to four per cent in rural regions. Youth faced a particularly high unemployment rate of 8.6 per cent.

“Regarding educational attainment, the unemployment rates varied: 7.8 per cent among individuals with post-secondary education, 6.3 per cent for those with upper secondary education, 5.5 per cent for those with lower secondary education, 4.8 per cent for those with primary education, and 2.7 per cent for those with no formal education,” the report revealed.

In Q3 2023, the proportion of employed individuals engaged in informal work decreased to 92.3 per cent, down by 0.4 per cent from the previous quarter’s 92.7 per cent. Notably, women exhibit a substantially higher rate of informal employment compared to men.

Rural areas reported a higher prevalence of informal employment, with 97.2 per cent of residents involved, while urban areas estimated an informality rate of 87.5 per cent. Females are disproportionately represented in informal employment compared to males.

On self-employment, the report by NBS stated that “For the quarter under review, 87.3 per cent of employed Nigerians were predominantly self-employed, while the remaining 12.7 per cent worked primarily as employees. 

In terms of gender breakdown, 90.5 per cent of women were self-employed, contrasting with 84.2 per cent of men in similar roles. 

Urban areas showed a lower proportion of self-employed individuals, with 80.3 per cent engaged in such work, whereas rural areas exhibited a higher rate of 94.5% among the employed.

Labour force participation

During Q3 2023, Nigeria’s labour force participation rate stood at 79.5 per cent, down from 80.4 per cent in Q2 2023. Men exhibited a participation rate of 80.9 per cent, while women had a rate of 78.2 per cent. Residents in rural areas were more inclined to participate in labour activities compared to their urban counterparts.

In the same period, 75.6 per cent of Nigeria’s working-age population was employed. Among males, the employment-to-population ratio was 77.7 per cent, whereas among females, it was 73.5 per cent. 

Urban areas reported an employment-to-population ratio of 71.1 per cent, whereas rural areas demonstrated a higher ratio of 80.7 per cent.