Fatshimétrie: Nigeria’s unemployment rate to rise in 2024
In Nigeria, the national statistics agency recently released a report indicating that the unemployment rate will increase by 1.2 percentage points to 5.3% year-on-year. This announcement was made on the same day that the Central Bank of Nigeria decided to increase the Monetary Policy Rate by 27.25%.
According to the report by the statistics agency, the unemployment rate in the first quarter of 2024 was 5.3%, up from 5.0% recorded in the third quarter of 2023. The figures also indicate gender disparities, with the unemployment rate at 4.3% for men and 6.2% for women. In terms of education level, the unemployment rate is 2.0% among those with tertiary education, 9.0% among those with post-secondary education, 6.9% for those with secondary education and 4.0% for those with primary education.
Furthermore, the report reveals a decline in the underemployment rate from 12.2% to 10.9% in the first quarter of 2024. Underemployment refers to the share of the workforce that works less than 40 hours per week but is ready for full-time employment. The data also shows a decline in the percentage of the workforce that is employed from 75.6% to 73.2%, with notable differences between rural and urban areas.
Meanwhile, the Central Bank of Nigeria’s decision to increase the Monetary Policy Rate has raised concerns among private sector stakeholders. Business operators including the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture and experts warn of the negative impact of such a move on investment and economic growth in the country. They point out that the hike could lead to even higher borrowing costs, creating more bad debts for banks and other financial institutions.
Despite the official figures released, some analysts, such as Ejike Nwuba of Renaissanceafrica Company, question the reality on the ground, saying that the real unemployment rate could be much higher than that announced by the statistics agency.
In conclusion, these latest economic developments in Nigeria highlight the persistent challenges facing the country in terms of employment and growth. It is crucial that policies and measures are put in place to boost employment, foster investment and support Nigeria’s economic development.