✔ Nigeria’s unemployment rate, according to the latest data from NBS, has reduced to 4.1% as of the end of Q1, 2023
✔ This is a massive shift from the 33% it stood at in the second quarter of 2020, which ranked Nigeria among the worst
✔ Experts, in separate conversations with Legit.ng, have reacted to the new figures, with one describing it as a joke
The National Bureau of Statistics recently revealed that Nigeria’s unemployment rate has dropped to 4.1% at the end of the first quarter of 2023.
The bureau stated this in its Labour Force Survey (NLFS) prepared in collaboration with the World Bank and the International Labour Organisation (ILO)
The latest figure indicates that Nigeria has suddenly transitioned from having the worst unemployment rate to outperforming countries like the United Kingdom and France
Nigeria’s unemployment rate in Q1, 2023 compared to the rest of the world
Japan: 2.5%
USA: 3.5%
Nigeria: 4.1%
UK: 4.2%
China: 5.3%
Indonesia: 5.45%
Canada: 5.5%
Germany: 5.6%
Egypt: 7.0%
France: 7.2%
Italy: 7.4%
Brazil: 8.0%
India: 8.9%
Morocco: 12.4%
South Africa: 32.6%
NBS justifies Nigeria’s figure
NBS in justifying the latest unemployment figure explained that there was a change in methodology, and it is in line with international best practices.
Part of the report reads:
“The revised methodology defines employed persons as individuals who are working for pay or profit and who worked for at least one hour in the last seven days against 40 hours.
“The old methodology placed a range on the working-age population- 15 – 64 year, while considering working hours between 20-39 hours as underemployment, 1-19 hrs as unemployment”
Expert reacts
Speaking to Legit.ng on the latest figure, Muda Yusuf, the Chief Executive Officer, Centre for the Promotion of Private Enterprise, described the latest figure as difficult to accept.
According to him, the new methodology needs to be reviewed to reflect our(Nigeria’s) realities.
“4% unemployment rate in this part of the world is as good as full employment. Empirical evidence abounds of many young people, especially the educated ones, who practically have nothing to do.
“It is true that there are several others who are engaged in different activities to make a living. There are also millions engaged in the informal sector.
But one hour engagement would definitely not pass for being an employed person. The essence of employment is to make a living. It is extremely difficult to find jobs in which an hour engagement a week would be sufficient to make a living, even in the most elementary form.”
Speaking also, Kelvin Emmanuel, a finance expert and development economist described the NBS 4.1% as a joke.
He said:
“In what world is Nigeria better than the UK and France?” I have looked at the report and I can’t find justification for the change in methodology in relation to our realities”
Earlier Legit.ng also reported Nigerian billionaire and co-founder of Stanbic IBTC Bank, Atedo Peterside took X, formerly Twitter to react to the latest unemployment figure.
He wrote:
“According to @StatiSense, South Africa’s unemployment rate is 32.6%, we (Nigeria) have brought ours down to 4.1%. The only catch is that we brought unemployment crashing down because @NBS_Nigeria changed methodology/definition of unemployment.”
