Macroeconomic Report & Economic Updates

Nigeria Economic Update (Issue 30)

According to the World Bank, the participation in the Nigerian labour force has declined by about 20 million workers between 2018 and 2020.¹ Even for those within the labour force, the inactive population has increased from 29 to 52 million workers between 2014 and 2020. Consequently, unemployment is at record levels as the unemployment rate is 26.3 percent while youth unemployment is 42.5 percent. Owing to the country’s socio-economic challenges as well as high unemployment levels, there has been a rise in migration as young people seek asylum and refugee status in other countries. Going forward, the decline in labour force participation is likely to continue as more young people migrate for better opportunities. Similarly, unemployment is likely to worsen considering the youth bulge and the limitedness of labour-absorbing industries such as agriculture and manufacturing in creating large numbers of high value jobs. Consequently, the private sector which is an important contributor to job creation will have to develop and generate additional opportunities by addressing existing barriers including limited productivity and competitiveness, insufficient diversification, and lack of openness to international markets.

Download Label
March 13, 2018 - 4:00 am
581.14 kB
v.1.7 (stable)