Nigeria’s unemployment rate fell to 4.3% in the second quarter of 2024, indicating better conditions in the job market. This improvement follows a decrease from 5.3% in the first quarter of the year and a recovery from 5.0% in the third quarter of 2023, as revealed by the National Bureau of Statistics in a recent report.
The Labour Force Participation Rate rose to 79.5% in Q2, compared to 77.3% in Q1, reflecting higher workforce involvement. Additionally, the Employment-to-Population Ratio climbed to 76.1%, up from 73.2% in the previous quarter, signifying a larger portion of the working-age population securing employment. Self-employment continued to dominate, making up 85.6% of total jobs, an increase from 84% in Q1, while informal employment edged up to 93.0%, underscoring the economy’s dependence on informal sectors.
Urban areas saw a decline in unemployment to 5.2%, down from 6.0% in Q1, while rural unemployment dropped significantly to 2.8%, compared to 4.3% previously. This contrast highlights the role of agriculture and informal activities in rural job creation versus the urban focus on formal and service-oriented employment. Youth unemployment (ages 15–24) also improved, falling to 6.5% from 8.4% in Q1, while gender disparities persisted, with female unemployment at 5.1% compared to 3.4% for males, pointing to the need for gender-inclusive employment strategies.
Other labour market indicators showed progress as well. Time-related underemployment, which tracks workers seeking extra hours, dropped to 9.2% from 10.6% in Q1. Broader labour underutilisation metrics also improved, with LU2 (unemployment and underemployment) reducing to 13.0% from 15.3%, and LU3 and LU4, which include potential workforce participation, declining to 5.9% and 14.5%, respectively.
