The National Bureau of Statistics (NBS) reveals that as of the conclusion of the second quarter in 2023, merely 12% of the workforce in Nigeria were engaged in wage employment.’
This is because 88 per cent of workers in the country are self-employed. This was contained in a report titled, ‘Nigeria Labour Force Statistics Report Q2 2023 which was released on Thursday by the NBS.
The overall unemployment rate for the second quarter of 2023 was recorded at 4.2 percent. The statistical agency defines the unemployment rate as the percentage of the labor force, comprising both unemployed and employed individuals, who are actively seeking employment and are available for work.’
It said, “The unemployment rate for Q2 2023 was 4.2 per cent, this is a marginal increase from 4.1 per cent recorded in Q1 2023. Unemployment rate by sex among men was 3.5 per cent and among women was 5.9 per cent in Q2 2023. Disaggregation by location, the unemployment rate was 5.9 per cent in urban areas and 2.5 per cent in rural areas.”
With a specific focus on the youth demographic, the unemployment rate for individuals aged 15 to 24 stood at 7.2 percent in the second quarter of 2023, as highlighted by the National Bureau of Statistics (NBS). The NBS emphasized its improved methodology for collecting labor market data through the Nigeria Labour Force Survey, aligning with International Labour Organization guidelines. The revealed unemployment rate indicates that a significant number of Nigerians are involved in entrepreneurial ventures or agricultural activities.
The national statistical agency underscored that employment falls into two broad categories: employees and the self-employed. It clarified that individuals working for compensation in the form of salaries or wages, including paid apprentices, are categorized as employees. On the other hand, self-employed individuals encompass own-account workers, contributing family workers, and employers.
Commenting on this category, it said, “In Q2 2023, 88.0 per cent of employed Nigerians were primarily self-employed with the remaining 12.0 per cent being primarily engaged as employees.
“Disaggregation by sex, 85.2 per cent of employed men were self-employed compared to 91.0 per cent of employed women. Disaggregation by location, 80.5 per cent of employed people in urban areas were self-employed compared with 95.3 per cent of employed people in rural areas.”
It added, “The proportion of workers in Wage Employment in Q2 2023 was 12 per cent.” Informal employment in Nigeria is currently pegged at 92.7 per cent.”
The NBS has come under criticism since it changed its employment calculation methodology. When it released its ‘4.1 per cent’ unemployment figure for Q1, 2023, the Nigerian Labour Congress, through its National Secretary-General, stated that the figures were not reflective of the current realities in the country.
The national secretary, Chris Onyeka, told The PUNCH, “The statistic is not reliable. It is as simple as that. It is not in sync with what is on the ground. We all know that the rate of unemployment in Nigeria is increasing.”