Nigeria’s unemployment rate climbed to 5% in the third quarter of 2023, marking a rise from 4.2% in the prior quarter. This increase coincides with a decline in labor force participation, dropping to 79.5% from 80.4%. While the new methodology employed by the National Bureau of Statistics (NBS) initially suggested a decrease in unemployment, critics like the Nigerian Labour Congress view these figures as inaccurate. Concerns lie with limited formal employment opportunities, with 87.3% of workers being self-employed and a significant portion (12.3%) experiencing underemployment. Youth unemployment and informal employment remain particularly high, at 8.6% and 92.3% respectively. Despite the NBS methodology being contested, experts like KPMG predict an even grimmer outlook, projecting a potential rise in unemployment to 40.6% compared to 2022’s 37.7%.
Source: ThinkBusiness Africa Data
