The National Bureau of Statistics (NBS) has revealed that 84% of Nigeria’s working-class population was self-employed in the first quarter of 2024. This represents a decline from the 87.3% recorded in the third quarter of 2023, according to the Nigeria Labour Force Survey (NLFS) Q1 2024.
The report highlights a 3.3 percentage point drop in self-employment, indicating a shift in the labor market. In contrast, wage employment saw an increase of 3.3 percentage points, rising to 16% in Q1 2024 from 12.7% in Q3 2023. This shift suggests that more Nigerians found traditional salaried jobs by early 2024, pointing to a gradual move toward formal employment.
The decline in self-employment was observed across both rural and urban areas. In rural regions, the rate fell from 93.7% to 91.9%, while in urban areas, it dropped from 80.7% to 78.2%. This trend reflects potential challenges for small businesses or growing opportunities for wage employment.
The gender breakdown also showed a decline in self-employment for both men and women. The percentage of self-employed women decreased from 90.2% in Q3 2023 to 87.9% in Q1 2024, while the rate for men dropped from 82.9% to 79.9%. Men experienced a slightly larger decrease, possibly due to better access to wage employment in certain sectors.
The NBS report also highlighted the high rate of informal employment in Nigeria, with 92.7% of the workforce engaged in informal jobs in Q1 2024, a slight increase from 92.3% in Q3 2023. Informal employment remains more prevalent in rural areas (97.6%) compared to urban areas (89%).
Educational attainment plays a significant role in determining informal employment rates. Those with little or no formal education are more likely to be employed informally, with 98.8% working in the informal sector. This figure drops to 67.6% for those with post-secondary education.
In summary, while there is a shift toward wage employment, self-employment continues to be a critical part of Nigeria’s labor market, particularly in rural areas.
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