Economic Growth and Job Creation (2012 Q3 to 2013 Q4)

This report examines the pattern of economic growth and employment generation in Nigeria based on quarterly data. It also analyzes the quality of job creation, dynamics of output and employment and establishes the link or absence thereof between economic growth and labor demand.

Date of Publication: July 2014

Volume Number: 1 Issue 1

Document Size: 14 pages

Job creation remains a centerpiece of President Goodluck Jonathan administration’s efforts owing largely to the prevailing high rate of unemployment, particularly among  the youth. Measured as ratio of the unemployed labor force that is actively looking for  employment to total labour force, the unemployment rate rose from 21.4 percent in 2010 (the year receding the inauguration of the administration) to 27.4 percent in 2012. During the same period, youth unemployment rose from about 35.9 percent to 42.0 percent.

The National Bureau of Statistics estimates that the labor force grew at an average annual rate of 3.2 percent from 57.5 million in 2006 to 65.2 million in 2010 and 67.3 million in 2011. As at 2011, the active unemployed labor force stood at 16.1 million, yielding 23.9 percent unemployment rate. At the annual rate of growth, the labor force is estimated at 69.4 million in 2012. Given the officially reported unemployment rate of 27.4 percent in 2012, the unemployed labor force rose to 19 million in 2012, implying that a net of 2.9 million people became newly unemployed during the year. 

This figure represents an increase from 2.1 million in 2011 and 1.5 million in 2010. The alarming rate of increase in unemployment is driven by both labor force growth and lackluster demand for labor in the labor market.