The National Bureau of Statistics (NBS) has reported that Nigeria’s unemployment rate has decreased to 4.1 percent in the first quarter of 2023.
This figure is a notable drop from the 33.3 percent unemployment rate reported in the last quarter of 2020, according to “Nigeria Labour Force Survey Q4 2022 & Q1 2023” report released by NBS on Thursday.
The report, which collected labour market data through the Nigeria Labour Force Survey (NLFS) in line with International Labour Organisation (ILO) guidelines, is based on a sample of 35,520 households nationwide.
The report revealed that “about three-quarters of working-age Nigerians were employed – 73.6% in Q4 2022 and 76.7% in Q1 2023. This shows that most people were engaged in some type of jobs for at least one hour in a week, for pay or profit.”
“About one-third (36.4% in Q4 2022 and 33.2% in Q1 2023) of employed persons worked less than 40 hours per week in both quarters. This was most common among women, individuals with lower levels of education, young people, and those living in rural areas.
“Underemployment rate which is a share of employed people working less than 40 hours per week and declaring themselves willing and available to work more was 13.7% in Q4 2022 and 12.2% in Q1 2023.
“The share of wage employment was 13.4% in Q4 2022 and 11.8% in Q1 2023.
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“Most Nigerians operate their own businesses or engaged in farming activities. The shares are 73.1% and 75.4% in Q4 2022 and Q1 2023 respectively.
“A further 10.7% in Q4 2022 and 10.6% in Q1 2023 were engaged helping (without pay or profit) in a household business.
“In Q4 2022, 2.6% were engaged as Apprentices/Interns and 2.2% in Q1, 2023.”
Speaking during the launch of the new methodology in Abuja on Thursday, the Statistician-General of the Federation and Chief Executive Officer of the National Bureau of Statistics (NBS), Mr. Semiu Adeniran said the new figure brings Nigeria’s Labour Survey in tandem with international standard.
“Following guidelines adopted during the 19th International Conference of Labour Statisticians (ICLS) in Geneva in 2013, the aim of this re-evaluation was two-pronged. On one hand was to ensure that the methodology is in line with international best practice and locally relevant, and on the other hand, to ensure that a production process was robust enough to produce estimates on a sustainable basis (avoiding periodic gaps), and also, produce more labour market indicators and analysis that will inform government about the employment and job situation in Nigeria,” Adeniran had said.
He said the survey was conducted in collaboration with the World Bank and the International Labour Organisation and has been adopted by 26 countries in Africa.
Adeniran said the new methodology considered employed persons as those who engaged in at least one hour of work during the last seven days the survey was conducted.
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He also noted that, unlike the old method that defined those that are in the labour force to be from 15-64 years old, the new adopted views it to be 15 and above that are willing, available, and able when the survey is conducted.
He stressed that the new figure is expected to provide a more accurate representation of Nigeria’s employment landscape and contribute to informed decision-making about the nation’s job market dynamics.
