The unemployment rate in Nigeria decreased to 4.3% in the second quarter of 2024, reflecting a 1 percentage point drop from the 5.3% recorded in Q1 2024.
However, on a year-on-year basis, the rate increased slightly by 0.1 percentage point compared to the same period in 2023.
The unemployment rate measures the proportion of the labour force that is not employed but actively searching for and available to work.
This quarter-on-quarter decline indicates improved labour market conditions, showcasing progress in employment creation despite broader economic challenges.
The data was sourced from the Nigeria Labour Force Survey (NLFS) for Q2 2024, released by the National Bureau of Statistics (NBS).
By place of residence, unemployment in urban areas was 5.2%, significantly higher than the 2.8% recorded in rural areas. The NBS report further noted that youth unemployment, covering individuals aged 15 to 24, declined to 6.5% in Q2 2024 from 8.4% in Q1 2024, indicating some progress in job creation for younger demographics.
Unemployment based on educational attainment showed notable variations. The rate was highest among individuals with upper secondary education at 8.5%, followed by those with lower secondary education at 5.8%. Persons with post-secondary education recorded a lower unemployment rate of 4.8%, while the lowest rate of 2.8% was observed among individuals with only primary education.
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The National Bureau of Statistics (NBS) report also highlighted the labour force participation rate, employment-to-population ratio, and employment status in Nigeria for Q2 2024.
- The labour force participation rate stood at 79.5%, with rural areas recording 83.2% compared to 77.2% in urban areas. Minimal gender disparities were noted, with males at 79.9% and females at 79.1%, reflecting steady engagement across demographics.
- The employment-to-population ratio increased to 76.1% in Q2 2024 from 73.1% in Q1 2024, with rural areas outperforming urban areas at 80.8% and 73.2%, respectively. Males recorded 77.2%, while females stood at 75%, demonstrating progress in workforce inclusion.
- Self-employment remained dominant, accounting for 85.6% of all employed persons, up from 84% in Q1 2023. Rural areas led with 94.3%, compared to 79.7% in urban areas. Female self-employment was 88.3%, higher than the 82.2% recorded for males.
- The share of employees declined to 14.4%, reflecting continued reliance on self-employment as the primary form of work in Nigeria.
These findings highlight the dominance of self-employment in Nigeria’s labour market and highlight the steady improvement in employment rates across the country’s diverse demographics and regions.