Nigeria's Labour Market: A Troubling Picture

Strategic Insights -

Nigeria's labour market continues to grapple with persistent challenges, despite a slight improvement in the overall unemployment rate. Youth unemployment remains a major concern, with women more severely affected. A staggering 93 per cent of the workforce operates in the informal sector, with women, youths, and persons with disabilities significantly excluded from decent work opportunities. The International Labour Organisation (ILO) has highlighted the need for institutionalising Technical and Vocational Education and Training (TVET) and apprenticeship systems to equip Nigeria's youth with job-ready skills.

Key Takeaways:

  • Nigeria's youth unemployment rate stands at 6.5 per cent, with women more affected at 7.8 per cent compared to 5.4 per cent for their male counterparts.
  • A staggering 93 per cent of the workforce operates in the informal sector, with women, youths, and persons with disabilities excluded from decent work opportunities.
  • Despite recent improvements in the national unemployment rate, informal employment dominates, and marginalised groups continue to face exclusion from decent jobs.
  • Technical and Vocational Education and Training (TVET) and apprenticeship systems are underdeveloped, contributing to a surplus of skills in low-demand areas and shortages in high-growth sectors.
  • Institutionalising TVET and apprenticeship systems is crucial to equip Nigeria's youth with job-ready skills and bridge the country's persistent skills gap.
  • The Strengthening Employment and Employability Systems in Nigeria (SEESIN) project, supported by the GIZ-SKYE II Programme, aims to enhance quality assurance, certification, gender equality, and the recognition of informal apprenticeships.
  • The Federal Ministry of Labour and Employment, in collaboration with the ILO, is working to strengthen employment frameworks that are inclusive and responsive to the demands of the 21st-century workplace.

Statistics:

  • 6.5 per cent: Nigeria's youth unemployment rate
  • 7.8 per cent: Women's unemployment rate
  • 5.4 per cent: Men's unemployment rate
  • 93 per cent: The percentage of the workforce operating in the informal sector
  • 4.3 per cent: National unemployment rate in 2023
  • 21st century: The time period in which Nigeria's labour ecosystem needs to adapt to meet demands of the modern workplace

Sources:

  • International Labour Organisation (ILO)
  • Federal Ministry of Labour and Employment (FMLE)
  • ILO Country Director for Nigeria, Ghana, Liberia, Sierra Leone, and ECOWAS Liaison Office, Vanessa Phala
  • ILO Senior Programme Officer, Mrs Chinyere Emeka-Anuna
  • Director, Skills Development and Certification Department, Federal Ministry of Labour and Employment, Engr. Tiza Shaakaa
  • GIZ-SKYE II Programme
  • Strengthening Employment and Employability Systems in Nigeria (SEESIN) project