2025 Unemployment Statistics in Nigeria

Nigeria’s unemployment rate for the second quarter of 2024 declined to 4.3% according to the released figures by the National Bureau of Statistics.

That is, about 9,870,000 Nigerians are presently unemployed. This figure includes those who have experienced job loss and those who recently joined the labour force (recent graduates and former housewives/stay-at-home husbands).  

The underemployment rate also witnessed a 9.2% decline in the second quarter of 2024. This implies that 9% of the labour force worked under 20 hours a week and were, advertently, underpaid. Added together, the unemployment and underemployment rates are capped at a very good rate of 13.5%.

The rising unemployment rate is not unrelated to inflation that has impeded economic activities, including the rising price of oil – the mainstay of the nation’s economy. 

How does NBS compute unemployment statistics?

The NBS introduced a new methodology for unemployment statistics. As discussed in a previous article here, unemployment is now defined differently. This revised methodology has led to a sharp drop in reported unemployment, for example, from 33.3% in Q4 2020 (under the old system) to 4.3% in Q2 2024 (under the new system). 

Unlike the old method, which counted only those actively seeking work as unemployed, the new method includes individuals willing to work but not actively searching. It also distinguishes between full employment (40+ hours per week) and underemployment (less than 40 hours), whereas the previous system did not. 

This new method controversially classifies individuals working at least one hour a week as employed, raising concerns that it underestimates unemployment and misrepresents economic realities. This change aligns with global practices but obscures Nigeria's unique challenges, including informal employment and low wages.

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• The number of people in the labour force (that is, people aged 15 -64), those who are able and willing to work increased to 79.5% in Q2 2024, reflecting a rise in workforce engagement compared to 77.3% in Q1 2024.
• The percentage of the working-age population employed reached 76.1% in Q2 2024, up from 73.2% in the previous quarter.
• The area of residence of Nigerians played a major role in the availability of jobs. Urban unemployment decreased to 5.2% in Q2 2024, down from 6.0% in Q1 2024, showing improvement in city labour markets.
• Rural areas saw a notable drop in unemployment, with a rate of 2.8% in Q2 2024, down from 4.3% in Q1 2024.
• Self-employment continues to dominate the Nigerian job market, accounting for 85.6% of total employment, a slight increase from 84% in Q1 2024.
• Informal employment rose to 93.0%, indicating the continued reliance of the economy on informal jobs.
• Gender disparities in unemployment persist, with females facing a higher rate of 5.1%, compared to 3.4% for males.
• The age group with the highest unemployment rate is young people (15-34years). However, the youth unemployment rate dropped significantly to 6.5%, down from 8.4% in Q1 2024, signalling progress among younger job seekers.
• The second-highest unemployment rate was recorded in favour of the aged at 3%, largely because the old ones had retired from active service and were unemployed during the survey. 
• A state-by-state breakdown was given, with Abia State recording the highest rate of unemployment at 18.7%, followed by the FCT and Rivers State with 14.1% and 13.4% respectively. Borno reported the least amount with 7.3% of the citizenry unemployed.
• The unemployment rate fell to 4.3% in Q2 2024, reversing a rising trend since Q2 2023.
• Also, the educational distribution of Nigerians played a major role in their employability. Persons with tertiary education had a higher employment rate compared to others in the educational subset.
• Despite the drop in unemployment, Nigeria's misery index (the sum of unemployment and inflation rate) rose to 38.3% in Q2 2024. This marks an increase from 26.7% in Q2 2023 and 36.9% in Q1 2024.
• Only 14.4% of employed persons were in paid jobs, reflecting limited formal employment opportunities.

Applying the CIA’s metric for unemployment globally, Nigeria is currently ranked at 49. Also using this, South Africa, Eswatini and Kosovo have the highest unemployment rate in the world, closely followed by Djibouti. Conversely, the countries with the lowest unemployment rates are Qatar, Niger, and Cambodia.

Understanding the unemployment statistics in Nigeria

#1: How many people are unemployed in Nigeria?

Currently, there are 9.87 million unemployed people in Nigeria. For comparative purposes, the nation's population is about 229.5 million (statista).

#2: What is the percentage of unemployed people?

The recently released information by the NBS caps Nigeria’s unemployment rate at 4.3%

#3: How many Nigerian youths are unemployed?

4.18 million, that is, 6.5% of Nigerian youths (aged 15-34) are presently unemployed.

#4: How many Nigerian graduates are unemployed?

In Q2 2024, individuals with no education and primary education had the lowest unemployment rates peaking at 2.3% and 2.8% respectively. Notably, those with post-secondary education (4.8%) faced a lower unemployment rate than those with only secondary education (8.5%). 

#5: What is the difference from last year?

In the third quarter of 2023, the unemployment rate peaked at 5%. This means there was a gradual recovery in 2024. 

#6: Where does Nigeria rank in the world?

Out of 209 countries with adequate unemployment data, Nigeria ranks at 49.

#7: How does Nigeria plan to solve its unemployment problems?

In a bid to curtail the rising rate of unemployment, the Federal Government of Nigeria introduced initiatives such as the Student Loan Scheme, Consumer Credit Corporation, National Youth Talent Export Programme, Investment in Digital and Creative Enterprises and other programmes listed in Federal Ministry of Information and National Orientation. 

#8: Is there any opposition to these statistics?

The figures from the National Bureau of Statistics met vehement opposition from the country’s labour congress. They described the drop in the unemployment rate as an invention, insisting it is in stark contrast to what exists in reality.