Nigeria's Labour Market in 2023: Unemployment at 5.4%, Informal jobs Dominate Workforce

Samuel Mobolaji

The National Bureau of Statistics (NBS) has reported Nigeria’s unemployment rate at 5.4 per cent for 2023, according to the newly released Nigeria Labour Force Survey.

The report, conducted in line with International Labour Organisation (ILO) guidelines, provides detailed insights into the country’s labour market across various states, education levels, and employment types.

The survey highlighted significant regional disparities, with Abia State recording the highest unemployment rate at 18.7 per cent, while Nasarawa had the lowest at just 0.5 per cent.

In terms of educational attainment, unemployment was most prevalent among those with post-secondary education (9.4 per cent), while individuals with no formal education had the lowest rate at 3.2 per cent.

Key findings also show that Nigeria’s working-age population (ages 15-64) reached 116.6 million in 2023, representing over half of the country’s total population.

Of this group, 88.9 million individuals, or 76.3 per cent, actively participated in the labour force, with Bauchi State leading in participation at 92.3 per cent and Ekiti State lagging at 63.4 per cent.

Of the total working-age population, 84.1 million people were employed, with a significant portion engaged in informal employment. An astounding 92.2 per cent of Nigeria’s employed population worked in informal sectors, with Kano State leading in this regard, hosting over 5.2 million informal workers, followed by Lagos with 4.6 million.

Employment disparities also emerged between urban and rural areas, with rural regions recording higher employment-to-population ratios (77.3 per cent) compared to urban areas (68.7 per cent). Bauchi State once again stood out with the highest employment-to-population ratio at 88.4 per cent, while Rivers State had the lowest at 55.7 per cent.

The report shed light on underemployment, where 11.1 per cent of the labour force experienced time-related underemployment—working fewer hours than they would prefer. Women faced higher underemployment (13.4 per cent) compared to men (8.3 per cent), with Plateau State earing the highest underemployment rate at 33.9 per cent.

Overall, the 2023 Labour Force Survey paints a complex picture of Nigeria’s labour market, highlighting persistent challenges in education-linked unemployment and the overwhelming dominance of informal employment.