Nigeria’s Unemployment Rate Rose to 33.3 Percent in the Fourth Quarter of 2020

Africa’s most populous nation, Nigeria’s unemployment rate rose to a record-high of 33.3 percent or 23.187 million persons in the fourth quarter of 2020, according to the latest data from the National Bureau of Statistics (NBS). 

This represents an increase of 6.2 percent from 27.1 percent recorded in the second quarter of 2020.

The number of economically active or working age population (15 – 64 years of age) stood at 122,049,400 during the quarter under review. This was 4.3 percent higher than the 116,871,187 recorded in the second quarter of 2020.

The total number of people – between ages 15 – 64 who are able and willing to work – in the labour market was estimated at 69,675,468, representing a 13.22 percent decline from the number recorded in the second quarter of 2020.

Out of this number, those within the age bracket of 25 – 34 were highest at 28.8 percent or 20,091,695 of the labour force.

“The total number of people in employment (i.e., people with jobs) during the reference period was 46,488,079. Of this number, 30,572,440 were full-time employed (i.e., worked 40+ hours per week), while 15,915,639 were under-employed (i.e., working between 20-29 hours per week). This figure is 20.6 percent less than the people in employment in Q2, 2020,” the NBS stated.

However, the underemployment rate declined from 28.6 percent filed in the second quarter 2020 to 22.8 percent in the fourth quarter.

“The unemployment rate among rural dwellers was 34.5 percent, up from 28.2 percent in the second quarter, 2020, while urban dwellers reported a rate of 31.3 percent up from 26.4 percent. In the case of underemployment among rural dwellers, it declined to 26.9 percent from 31.5 percent, while the rate among urban dwellers decreased to 16.2 percent from 23.2 percent in the second quarter, 2020,” NBS stated.

“The total number of people in employment (i.e., people with jobs) during the reference period was 46,488,079. Of this number, 30,572,440 were full-time employed (i.e., worked 40+ hours per week), while 15,915,639 were under-employed (i.e., working between 20-29 hours per week). This figure is 20.6 percent less than the people in employment in the second quarter, 2020.”

“For the period under review, the fourth quarter 2020, the unemployment rate among young people (15- 34years) was 42.5 percent up from 34.9 percent, while the rate of underemployment for the same age group declined to 21.0 percent from 28.2 percent in Q2, 2020. These rates were the highest when compared to other age groupings.”