In the first quarter of 2024, Nigeria’s unemployment rate rose to 5.3%

According to data from the National Bureau of Statistics (NBS), Nigeria’s unemployment rate 

increased from 5.0% in the third quarter (Q3) of 2023 to 5.3% in the first quarter (Q1) of 2024.

In its report released on Tuesday, September 24, the NBS defined unemployment as the share of the labor force actively seeking work but unable to find employment. The report also highlighted disparities in unemployment rates based on gender and location. The unemployment rate among men stood at 4.3%, while for women it was higher at 6.2%. Urban areas saw an unemployment rate of 6.0%, compared to 4.3% in rural areas during the same period.

While the overall unemployment rate increased, the report noted a slight decline in youth unemployment, which dropped from 8.6% in Q3 2023 to 8.4% in Q1 2024.

The NBS also highlighted a decrease in Nigeria’s employment-to-population ratio, which fell to 73.2% in Q1 2024, down from 75.6% in Q3 2023. This ratio measures the percentage of the working-age population that is employed. The data showed that 74.2% of men and 72.3% of women were employed in Q1 2024.

Urban areas had an employment-to-population ratio of 69.5%, whilst rural areas had a higher ratio of 78.9%. This is a minor decrease from the 71.1% and 80.7% for urban and rural areas, respectively, 

that were reported in the third quarter of 2023.

As self-employment gradually declines, the NBS report reveals a persistent shift in Nigeria’s 

labor sector. Compared to 86% during the same period last year, 84% of workers were independent contractors in Q1 2024. With the percentage of working people receiving salaries or earnings increasing to 16% in Q1 

2024 from 12.7% in Q3 2023, the research suggested that this change represents a shift from 

self-employment to more formal employment options.

Gender disparities were also evident in self-employment rates, with 87.9% of women engaged in self-employment compared to 79.9% of men. Additionally, the self-employment rate was significantly higher in rural areas (91.9%) than in urban areas (78.2%).

The NBS report provides a comprehensive look at Nigeria’s labor market in Q1 2024, shedding light on both unemployment trends and shifts in the structure of employment.