Nigeria’s unemployment rate has dropped to 4.1% in the first quarter (Q1) of 2023 as the National Bureau of Statistics (NBS) adopts a new data collection and analysis model.
This represents a significant drop from the 5.3% reported in the final quarter of 2022.
Key Highlights of the Report
Improved Employment Rate: One of the standout findings in the report is the increase in the employment rate.
Approximately 76.7% of working-age Nigerians were engaged in some form of employment during the first quarter of 2023, compared to 73.6% in the previous quarter.
Shift in Work Patterns: The data also indicates a shift in work patterns, with more Nigerians involved in their own businesses or engaging in farming activities.
Self-employment and agriculture accounted for 75.4% of employment in Q1 2023, up from 73.1% in Q4 2022.
Underemployment Decrease: The underemployment rate, which measures those working less than 40 hours per week but willing to work more, decreased to 12.2% in Q1 2023 from 13.7% in Q4 2022.
This is seen as a positive development, indicating that more Nigerians are finding jobs that better match their skills and preferences.
Informal Employment Remains High: Informal employment, including agriculture, still makes up the majority of employment in Nigeria.
In Q1 2023, 92.6% of employed individuals were in the informal sector, down slightly from 93.5% in the previous quarter.
The Paradigm Shift: A New Computing Model
The adoption of this model, which incorporates modern statistical techniques and aligns with international best practices, has breathed new life into the country’s labor market data collection and analysis.
Sharper Definitions: The revamped computing model places a sharper focus on definitions and concepts related to employment.
Employed persons are now defined as those working for pay or profit for at least one hour in the last 7 days.
Underemployed individuals are those working less than 40 hours per week but actively seeking more work, while unemployed persons are those not in employment but actively searching and available for work.
Redefining Working-Age Population: The revised methodology broadens the working-age population to include individuals aged 15 and above.
It also introduces a distinction between commercial and subsistence agriculture, providing a more nuanced view of employment in the agricultural sector.
A Shift in Employment Patterns: The report also reveals a notable shift in employment patterns. More Nigerians are now involved in their own businesses or engaged in farming activities, with self-employment and agriculture accounting for 75.4% of employment in Q1 2023, up from 73.1% in Q4 2022.
