The latest labour force statistics released by the National Bureau of Statistics (NBS) reveals that Imo State reported the highest rate of unemployment with 56.64 percent in the fourth-quarter (Q4) of 2020. The NBS data also show that Adamawa and Cross River states followed Imo, reporting unemployment rates of 54.89 percent and 53.65 percent, respectively.
It is worthy to note that a rise in the unemployment rate is not entirely equivalent to an increase in job losses. Rather, an increase in unemployment can occur as a result of several reasons, of which loss of an existing job is just one.
A rise in unemployment generally means the number of people searching for jobs has increased, which can occur because: people previously outside the labour force (example students, housewives etc) have decided to join the labour force and are now in search of jobs; or people previously working have lost their jobs and are now in search of jobs. Often, it is a combination of the two factors.
Imo has working age population of 3,739,211, of which 1,792,529 are not in labour force, while 1,946,682 are in labour force. In the Q4’20 period, the total number of unemployed people in Imo is 1,102,525, according to the NBS report.
“State unemployment is a moment-in-time index only and can change quite quickly. It is therefore, advisable to be cautious in comparing trends, particularly among states, because of the ease of movement across state borders, as job seekers search for employment or economic opportunities in other states,” the NBS data note.
“Favourable conditions in one state may lead to an influx of jobseekers in that state and in the process increasing unemployment in the performing state, while reducing the unemployment rate in the originating state. This may give a false impression that the state with the lower unemployment rate is performing better,” the NBS notes.
Adamawa has working age population of 2,895,303, of which 1,256,290 are not in labour while 1,639,013 are in labour force. In Q4, 20, the total number of unemployed people in Adamawa is 899,636.
Cross River State has working age population of 2,531,503, of which 670,951 are not in labour force while 1,860,552 are in labour force. The total number of unemployed people in Cross River is 998,203.
The states with the lowest unemployment rates are Osun in the South-West, Benue and Zamfara with 11.65 percent, 11.98 percent and 12.99 percent, respectively. In the case of underemployment, Benue recorded the highest rate with 43.52 percent, followed by Zamfara and Jigawa with 41.73 percent and 41.29 percent, respectively. Lagos State recorded the lowest underemployment rate with 4.5 percent in Q4, 2020.
Combining both unemployment and underemployment, the state that recorded the highest rate was Imo with 82.5 percent followed by Jigawa with 80 percent. Ogun and Sokoto recorded the lowest of the combined rates, 26.2 percent and 33.7 percent, respectively.
In line with its statutory mandate to provide government and policymakers with reliable and timely information, the National Bureau of Statistics routinely computes and disseminates the labour force statistics.
In Nigeria, the number of persons in the economically active or working age population (15 – 64 years of age) during the reference period of the survey, Q4, 2020 was 122,049,400. This is 4.3 percent higher than the figure recorded in Q2, 2020, which was 116,871,186.
The number of persons in the labour force (that is people within ages 15 -64, who are able and willing to work) was estimated to be 69,675,468. This was 13.22 percent less than the number persons in Q2, 2020. Of this number, those within the age bracket of 25-34 were highest, with 20,091,695 or 28.8 percent of the labour force.
The total number of people in employment (that is people with jobs) during the reference period was 46,488,079. Of this number, 30,572,440 were full-time employed (that is, worked 40 plus hours per week), while 15,915,639 were under-employed (that is, working between 20-29 hours per week). This figure is 20.6 percent less than the people in employment in Q2, 2020.
The unemployment rate during the reference period, Q4, 2020 was 33.3 percent, an increase from the 27.1 percent recorded in Q2, 2020. The underemployment rate declined from 28.6 percent in Q2, 2020 to 22.8 percent.
The unemployment rate among rural dwellers was 34.5 percent, up from 28.2 percent in Q2, 2020, while urban dwellers reported a rate of 31.3 percent up from 26.4 percent. In the case of underemployment among rural dwellers, it declined to 26.9 percent from 31.5 percent, while the rate among urban dwellers decreased to 16.2 percent from 23.2 percent in Q2, 2020.
For the period under review, Q4, 2020, the unemployment rate among young people (15-34yrs) was 42.5 percent up from 34.9 percent, while the rate of underemployment for the same age group declined to 21 percent from 28.2 percent in Q2, 2020. These rates were the highest when compared to other age groupings.
