The recently released labour data, which places the unemployment rate at 4.2%, has drawn criticism from organised labour and other experts who argue that the figure is out of step with the current situation.
They said that the National Bureau of Statistics’ (NBS) unemployment rate was no longer relevant and unhelpful for making plans.
According to the NBS, there was a 0.1% increase in Nigeria’s unemployment rate from 4.1% in the first quarter (Q1) 2023 to 4.2% currently.
This was mentioned in a report that the Bureau released yesterday and was named the “Nigeria Labour Force Statistics Report Q2 2023.”
In line with the updated methodology released in August, the NBS classifies people as employed if they have worked for a minimum of one hour during the previous seven days.
It stated that the unemployment rate for young people between the ages of 15 and 24 rose to 7.2% in the second quarter of 2023, emphasising that this was an increase from 6.9% in the first quarter of 2023 to 7.2%.
According to the Nigeria Labour Force Survey (NBS), it has improved its methods for gathering labour market data in compliance with International Labour Organisation (ILO) norms.
According to the research, 80.4% of Nigeria’s working-age population who are employed took part in the poll.
Over 15 firms with a combined value-chain worker strength of over 20,000 employees have either divested or partially closed down in the previous three years, according to the Nigeria Employers’ Consultative Association (NECA), adding to the number of jobs lost.
In response to the figures, Chris Onyeka, Assistant General Secretary of the Nigeria Labour Congress (NLC), stated that before implementing the new technique, NBS should accept the truth of Nigeria’s unemployment rate, which places it at 33.3%, as opposed to building on erroneous data.
In terms of the labour centre, he claimed that unemployment in Nigeria has increased dramatically over the 4.1% reported by the NBS.
Independent research, he claimed, has demonstrated that while general unemployment is above 35%, youth unemployment is over 60%.
He mentioned a number of large corporations that had recently divested, claiming that this had inevitably increased the unemployment rate despite the lack of new job creation.
That’s the way things really are. Because of the high prevalence, it is simple to lure people into becoming criminals. The macroeconomic issues need to be addressed by the government, he stated
Additionally, the NBS position implies that the unemployment rate is lower than the natural rate of unemployment, which is regarded as typical for the economy, according to Bongo Adi, an economics professor at the Lagos Business School (LBS).
“People leave one job and there is an interval of time within which they are searching for a new job, so before they get a new placement, they remain temporarily unemployed, which is a very short one,” the don explained while elucidating the five percent natural rate of unemployment.
“There is structural unemployment during this time, which is a result of technological change. This implies that while new opportunities may arise, you won’t have the necessary skills until training meets these new needs.”
“You’re bound to have some layer of unemployment within that period again. Thus, the five percent known as the “natural rate of unemployment” is composed of these various unemployment-related frictions.”
According to the NBS, unemployment is actually lower than the natural rate. That is to trivialise the field; it defies logic entirely.
Dr. Tommy Okon, the deputy president of the Trade Union Congress of Nigeria (TUC), stated that in order to attract investors and end Nigeria’s protracted job gap, the government must think creatively and establish clear policy directions
He noted that in order to support President Bola Tinubu’s “Renewed Hope Agenda,” which aims to generate vast employment, the government must also plan to guarantee that the industries have a favourable climate in which to operate.
