Business and Economy

Nigeria’s unemployment rate rises slightly to 4.2% in second quarter of 2023

The Nigeria Labour Force statistics report, released by the National Bureau of Statistics (NBS), reveals that the unemployment rate in Q2 2023 has slightly increased to 4.2 percent. This represents a 0.1 percentage points rise from the previous quarter’s 4.1 percent.

On the other hand, time-related underemployment has decreased by 0.4 percentage points to 11.8 percent in Q2 2023, compared to 12.2 percent in the preceding quarter. As a result, the combined rate of labour underutilization, which includes both time-related underemployment and unemployment, stands at 15.5% during this period.

This situation is influenced by various factors, including rapid population growth surpassing job availability, bureaucratic obstacles hindering business operations, slow economic growth, and security concerns, among others. The high level of labour underutilization indicates that the economy is struggling to create enough job opportunities for individuals entering the workforce. To address this issue, the government should focus on stimulating the economy through fiscal and monetary policies.

This can be achieved by enhancing the efficiency of government spending and promoting macroeconomic stability, which will boost overall demand and lead to the creation of more jobs. Additionally, it is crucial to establish job creation hubs in labour-intensive sectors like manufacturing and services. These hubs will foster innovation, entrepreneurship, and ultimately generate more employment opportunities.

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