The Nigeria Labour Force Survey (NLFS) for Q2 2024, published by the National Bureau of Statistics (NBS), reveals significant insights into the state of employment in the country, particularly focusing on informal employment and the role of education in shaping job opportunities.
Key Findings:
- Prevalence of Informal Employment:
Informal employment continues to dominate the Nigerian labor market, accounting for 93.0% of the employed population in Q2 2024. This is a slight increase from 92.7% in Q1 2024 and 92.3% in Q3 2023, indicating a consistent trend of a predominantly informal workforce. - Impact of Education on Employment Type:
A notable correlation exists between educational attainment and the likelihood of informal employment. The report highlights the following breakdown of informal employment based on education levels:- No formal education: 99.0%
- Primary education: 97.9%
- Lower secondary education: 94.7%
- Upper secondary education: 67.1%
- Post-secondary education: 26.6%
- Rural vs. Urban Informality:
The data also underscores a significant disparity between rural and urban areas. The informality rate is higher in rural areas at 97.5%, compared to 90.0% in urban areas. This suggests that rural areas, where formal sector jobs may be less accessible, are more prone to informal employment. - Gender Disparities:
Females are more likely than males to work informally, reflecting broader societal and economic challenges. This trend points to the gender gap in access to formal employment opportunities, which may be influenced by factors such as gender discrimination or fewer available opportunities for women. - Youth Employment and Education:
The survey highlights a positive shift in youth participation in education and the workforce. The proportion of Nigerian youths aged 15-24 who are Not in Education, Employment, or Training (NEET) decreased to 12.5% in Q2 2024 from 14.4% in Q1 2024. This suggests that more young people are engaging in education, vocational training, or entering the labor force, which is encouraging for the country’s future workforce. However, a gender gap remains in the NEET category, with 14.3% of females in this group, compared to 10.9% of males. This indicates that young women face more significant barriers to education and employment, which could stem from socio-economic and cultural challenges. - Decline in Discouraged Job Seekers:
The report also notes a decrease in discouraged job seekers (those who are willing to work but have stopped actively seeking employment due to various barriers), dropping from 3.6% in Q1 2024 to 2.0% in Q2 2024. This decline suggests a potential improvement in job market conditions, with more individuals re-engaging in the labor force, possibly due to an increase in agriculture-related activities.
What This Means for Nigeria’s Workforce:
- Education’s Critical Role: Education continues to be a key determinant of formal versus informal employment. With a substantial portion of the population still in informal employment, improving educational opportunities and access is crucial for expanding the formal sector.
- Youth Engagement: The decrease in the NEET youth group is promising, showing a shift towards greater youth involvement in the economy. However, addressing the gender gap and ensuring more equitable access to opportunities for young women will be essential for sustainable development.
- Rural-Urban Divide: The high rate of informality in rural areas suggests that policy interventions aimed at improving access to formal jobs and education in these regions could help reduce the overall informality rate.
- Addressing Discouragement: The reduction in discouraged job seekers is a positive sign of improving labor market conditions. However, ongoing efforts to address systemic barriers to job access are needed to sustain this trend.
In summary, while Nigeria’s informal employment rate remains high, positive trends in youth engagement and education levels offer hope for future improvements. However, targeted efforts to bridge gender gaps and increase formal employment opportunities, especially in rural areas, will be critical for long-term economic growth.
