Oliver Miller
Fri, Aug 25, 2023 6:45 PM

Nigeria's Unemployment Rate Hits Record Low at 4.1%

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Nigeria's Unemployment Rate Hits Record Low at 4.1%
Nigeria's unemployment rate has dropped to a record low of 4.1% in the first quarter, according to the National Bureau of Statistics. The revised methodology now defines employed persons as those in paid jobs, and considers underemployment as working less than 40 hours a week. Despite the positive news, the majority of employed Nigerians are still in the informal sector.

Nigeria's jobless rate has fallen to a historic low, with the first quarter of the year recording an unemployment rate of 4.1%, according to the National Bureau of Statistics (NBS). This marks a significant improvement compared to the previous quarter, where the rate stood at 5.3%.

The NBS revised its methodology for calculating the unemployment rate to align with international standards. Under the new system, employed persons are defined as those in paid jobs who worked for at least one hour in the last seven days. Underemployment includes those working less than 40 hours a week who are willing and available to work.

While the lower unemployment rate is encouraging, the NBS reports that the majority of employed Nigerians are still part of the informal sector. Informal employment accounted for a staggering 92.6% among all employed individuals in the first quarter.

The informal sector in Nigeria has long been a significant source of employment. With limited formal job opportunities and a lack of social protection for the unemployed, many Nigerians turn to informal work to make ends meet.

Nigeria, as Africa's most populous country, has struggled with high unemployment rates for years. Rapid population growth has outpaced economic growth, resulting in a shortage of job opportunities.

Despite the positive momentum in lowering unemployment rates, Nigeria continues to face challenges such as record debt, sluggish growth, and poor infrastructure. These factors contribute to the uneven distribution of wealth in the country.

The NBS data also revealed a decrease in underemployment, which dropped to 12.2% in the first quarter from 13% in the previous quarter. While this is a positive development, it indicates that many Nigerians are still unable to secure full-time employment.

The government and policymakers must continue to address the underlying issues that contribute to high unemployment and underemployment. Investing in sectors that create productive and sustainable jobs, improving infrastructure, and promoting entrepreneurship and innovation are crucial steps towards reducing unemployment rates and driving economic growth.

As Nigeria strives to diversify its economy and create more formal job opportunities, a comprehensive approach that addresses both the supply and demand sides of the labor market is necessary. This includes investing in education and skills development to equip Nigerians with the capabilities needed for emerging industries.

While the drop in unemployment rates is a positive sign, sustained efforts are required to ensure that more Nigerians can secure stable and decent employment.

Source of content: OOO News 2023-08-25 News

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