Economy Today

Unemployment Rate in Nigeria and Its Consequences

Economy Today

Biyi Adeniran

According to National Bureau of Statistics (NBS) report on International Unemployment Rate with the International Labour Organization’s (ILO) standard of 1-hour work per week, Nigeria’s recent unemployment rate is 33.3 per cent.

This made Nigeria to be ranked as the 41st country with the highest unemployment rate out of 181 countries of the world.

The breakdown by educational status revealed that A ‘levels Certificate holders had 50.7 per cent rate of unemployment, First Degree/HND stood at 40.1 per cent and Doctorate Degrees had 16.9 per cent.

By age grouping, those between 15 and 24 years stood at 53.4 per cent whilst those at the age bracket of 25 and 34 had 37.0 per cent.

In total the youth population recorded an unemployment rate of 42.5 per cent.

The latest NBS report on the ‘labour force Statistics (Q4, 2020), which revealed that 33.3 per cent of the labour force in Nigeria or 23,187,389 persons either did nothing or worked for less than 20 hours a week confirmed the position of ILO.

This translates to mean that one in three Nigerians were unemployed.

By State disaggregation, Imo had the highest rate of unemployment with 56.6%, while Adamawa and Cross River States had 54.9% and 53.7% respectively. Osun State with 11.7% recorded the lowest rate.

For underemployment, Benue State recorded the highest rate of 43.5%, while Lagos State recorded the lowest underemployment rate of 4.5%.

The unemployment rate among rural dwellers was 34.5 per cent.

Persons who did not do any work in the last seven days preceding the survey were 12,160,178.

The implication is that Nigeria will continue to experience worsening security challenge as there is a pool of idle hands to recruit from for criminal purpose.

It is noteworthy that unemployment impacts those that are employed in view of the fact that the families of unemployed lose wages while the nation loses the contribution of the unemployed to the economy in terms of the goods or services that could have been produced.

Unemployment has its personal and social costs which include severe financial hardship and poverty, debt, homelessness and housing stress, family tensions and breakdown, boredom, alienation, crime, shame and stigma, increased social isolation, erosion of confidence and self-esteem, the atrophying of work skills and ill-health.

It is the reason for increasing suicides in the country.

Consequences of unemployment on both individuals and the nation make public policy interventions inevitable so as to curb crimes and untimely death.

Leave a Reply

Your email address will not be published. Required fields are marked *