November 28, 2024/CSL Research
The National Bureau of Statistics (NBS) recently published the Nigeria Labour Force Survey (NLFS) for Q2 2024. The survey’s primary objective is to gather essential labour market data and make it available to support:1) government policies and programmes for effective planning, and 2) private sector investment decision-making aimed at improving the employment situation in the country. Key indicators covered in the survey include the labour force participation rate, employment-to-population ratio, unemployment rate, time-related underemployment, self-employment, and overall labour underutilization.
Nigeria’s unemployment rate, defined as the proportion of the labour force actively seeking and available for work but not employed, decreased to 4.3% in Q2 2024 from 5.3% in Q1 2024. Women experienced a higher unemployment rate (5.1%) compared to men (3.4%). Time-related underemployment, which refers to the percentage of employed individuals working less than 40 hours per week but willing and available to work additional hours, also declined. In Q2 2024, the underemployment rate stood at 9.2%, down from 10.6% in Q1 2024. Underemployment was higher among women (11.2%) than men (7.1%). The working-age population includes all individuals aged 15 years and above.
The labour force participation rate, which represents the proportion of the working-age population actively engaged in the labour force (either employed or seeking employment), increased to 79.5% in Q2 2024, up from 77.3% in Q1 2024.The employment-to-population ratio, measuring the percentage of employed individuals within the total working-age population, rose to 76.1% in Q2 2024, a 2.9% increase from 73.2% in Q1 2024. In terms of employment status, the share of self-employed individuals grew from 84.0% in Q1 2024 to 85.6% in Q2 2024. Conversely, the proportion of those primarily employed as workers declined from 16.0% in Q1 2024 to 14.4% in Q2 2024.
While the employment-to-population ratio shows an overall improvement in job opportunities between Q1 2024 and Q2 2024, the decline in the proportion of employees and the rise in self-employment suggest a different trend. This shift likely reflects the ongoing pressure on companies to manage surging operational costs, leading to layoffs. As a result, more individuals are turning to small-scale business ventures as an alternative source of income.
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