Nigeria’s Unemployment Rate Surges to 5.0% in Q3 2023

Nigeria’s unemployment rate surged to 5.0% in the third quarter (Q3) of 2023, representing an increase of 0.8% from the previous quarter, according to recent statistical data released by the National Bureau of Statistics (NBS).

The latest figures underscore the persistent challenges facing Nigeria’s labor market, with the increase in unemployment posing fresh concerns for policymakers grappling with economic recovery efforts amidst global uncertainties.

Among the most affected demographics, the unemployment rate among youth aged 15-24 years surged to 8.6% in Q3 2023, representing a significant increase of 1.4% compared to the previous quarter.

Urban areas also experienced a slight uptick in unemployment, with the urban unemployment rate rising to 6.0% in Q3 2023, a modest increase of 0.1% from the previous quarter.

This trend reflects the complex dynamics of urban employment and underscores the need for targeted policies to address urban job creation and economic resilience.

Moreover, the data revealed that the combined rate of unemployment and time-related underemployment as a share of the labor force population increased to 17.3% in Q3 2023 from 15.5% in the previous quarter.

This broader measure of labor market underutilization highlights the multifaceted nature of Nigeria’s employment challenges, calling for comprehensive strategies to promote inclusive and sustainable job creation.

Key Highlights

• The labour force participation rate among the working-age population declined to 79.5% in Q3 2023 compared to 80.4% in Q2 2023.
• The employment-to-population ratio was 75.6% in Q3 2023 with a decrease of 1.5% compared to a ratio of Q2 2023.
• The combined rate of unemployment and time-related underemployment as a share of the labour force population (LU2) increased to 17.3% in Q3 2023 from 15.5% in Q2 2023.
• About 87.3% of workers were self-employed in Q3 2023.
• The proportion of workers in Wage Employment in Q3 2023 was 12.7%
• The unemployment rate increased significantly in Q3 2023 at 5.0%. This is an increase of 0.8% from Q2 2023.
• The rate of unemployment among persons with post-secondary education was 7.8% in Q3 2023
• The unemployment rate among youth aged (15-24 years) was 8.6% in Q3 2023. Increase of 1.4% compared to Q2 2023.
• The unemployment rate in urban areas was 6.0% in Q3 2023, a slight increase of 0.1% from Q2 2023.
• Time-related underemployment in Q3 2023 was 12.3%, showing a slight increase of 0.5% from the rate recorded in Q2 2023. This shows an increase of 1.4% compared to the rate in Q4 2022.
• 4.1% of the working-age population was in subsistence agriculture in Q3 2023.
• Informal employment rate in Q3 2023 was 92.3%, while Q2 2023 was 92.7%.
• Percentage of youth Not in Employment, Education or Training (NEET Rate) was 13.7% in Q3 2023.