Unemployment Rate Reaches 5.3% in Q1 2024
Nigeria’s unemployment rate has increased to 5.3% in the first quarter of 2024, according to the latest report by the National Bureau of Statistics (NBS). This marks a rise from the 5% recorded in the third quarter of 2023. The data shows that the situation is particularly dire in urban areas, where unemployment reached 6%, compared to 4.3% in rural regions.
Labour Force Participation Declines
The report highlights a concerning decline in labour force participation. In Q1 2024, the participation rate dropped to 77.3%, down from 79.5% in Q3 2023. Despite having a working-age population of 116.6 million in 2023, fewer people are now actively engaged in the workforce, reflecting the challenges faced by the Nigerian economy.
Regional Disparities in Unemployment
There are significant disparities in unemployment rates across Nigeria’s states. Abia recorded the highest unemployment rate at 18.7%, while Nasarawa had the lowest, at just 0.5%. These regional differences underline the uneven distribution of economic opportunities, with some areas struggling far more than others.
Youth Unemployment Shows Slight Improvement
Despite the overall rise in unemployment, the rate among young people aged 15-24 has seen a slight improvement. The report shows that youth unemployment decreased to 8.4% in Q1 2024, down from 8.6% in Q3 2023. However, the percentage of individuals not in education, employment, or training (NEET) increased to 14.4% from 13.7% in the previous quarter.
Rural vs Urban Employment Trends
The data continues to show stronger employment trends in rural areas compared to urban centres. In Q1 2024, 73.2% of people in rural areas were employed, a decrease from 75.6% in Q3 2023. This contrast indicates that urban regions are feeling the impact of economic challenges more acutely, with fewer employment opportunities available in the cities.
Government’s Role in Addressing Unemployment
As Nigeria grapples with rising unemployment, there are calls for the government to address the structural issues affecting job creation. The report underscores the need for targeted interventions in both urban and rural areas to balance employment opportunities and improve economic stability across the country.
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