The long awaited unemployment data was finally released today after a 2-year delay. Nigeria’s unemployment rate climbed to its highest level in a decade Q2’20 (27.1%) from 23.1% in Q3’18. In the last 4 years, unemployment rate has more than doubled as the economy struggled to recover from the 2016 recession. The underemployment rate also followed a similar trend, rising at a faster pace to 28.6% from 20.1% in Q3’18.
This shows growing imbalances in the labour markets across Nigeria. The misery index, which is a proxy for the level of citizens welfare and is computed as an addition of unemployment, underemployment and inflation has now spiked from 54.48% to 68.26%, Nigeria is now ranked the 6th highest in the world.
So, as the Covid paralysis takes its toll, the delayed impact will show up in higher unemployment in future quarters. This means that the Economic Sustainability Plan needs to focus on job creation and shared prosperity especially in the light of the debilitating effect of the ever growing level of multi-dimensional poverty in Nigeria.
In this publication, the FDC Think-Tank analysis the unemployment numbers for Q2’20 and its implications on businesses and the wider economy.
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