The state of the Nigerian economy is difficult. Increased prices of commodities, high inflation rate and massive unemployment have plagued the country, yet the Nigerian government struggles to generate revenue to put them in good position to face these threats. As it concerns the youths of the country, it is important to look at the pattern of unemployment in the country for 2016.
The bureau gave an insight into unemployment pattern of the country with its unemployment report which was released by the Statistician General of the Federation in Abuja. In the report, the bureau said the number of people that were unemployed or underemployed increased from 24.5 million as at the end of the first quarter to 26.06 million persons.
The report carried information that, “The number of underemployed in the labour force (those working but doing menial jobs not commensurate with their qualifications or those not engage in full time work and merely working for few hours) increased by 392,390 or 2.61 per cent resulting in an increase in the underemployment rate to 19.3 per cent in Q2 2016 from 19.1 per cent Q1 2016.
“During the reference period, the number of unemployed in the labour force, increased by 1,158,700 persons, resulting in an increase in the national unemployment rate to 13.3 per cent in Q2 2016 from 12.1 in Q1 2016.
“In view of this, there were a total of 26.06 million persons in the Nigerian labour force in Q2 2016 that were either unemployed or underemployed compared to 24.5 million in Q1 2016.”
Going by the reports of Trading Economics, employment barely rose by 0.06 per cent to 69.04 million while labour force increase 1.78 percent to 79.9 million. This shows that the employment rate and increase in labour force are not directly proportional and this majorly leads to increase in unemployment rate in the country. It was recorded that youth unemployment increased to 24 per cent from 21.5 per cent.
The economy continued to weaken in Q3, the GDP contracted 2.2% annually, marking a sharper drop than the 2.1% decline observed in Q2. This point towards increased unemployment rate in Q3. However, we await the release of the statistics by NBS to confirm this hypothesis.
Conclusively, unemployment threatens the economy of any country. In the case of Nigeria, it has continued to worsen and this questions the economic program of the government. Unemployment rate in Nigeria averaged 9.28 per cent from 2006 to 2016. The highest rate in Nigeria is 19.70 per cent in Q4 of 2009 while the lowest rate of unemployment is 5.10 per cent in Q4 of 2010.
This article was written by Ibironke Oluwatobi. He tweets via: @ibironketweets
Too busy to visit our blog every day? We get it! Subscribe to our weekly newsletter and get our best stories delivered to your mailbox every Friday!