The Nigerian Labour Congress has described the shed in Nigeria’s unemployment fee exempt in a record by way of the Nationwide Bureau of Statistics on Monday as untruth, stressing that it contradicts fact.
The NLC’s place was once corroborated by way of the Organised Personal Sector, with the OPS mentioning that the record was once no longer reflective of financial realities.
The NBS in its actual record mentioned that Nigeria’s unemployment fee declined to 4.3 consistent with cent in the second one quarter of 2024, signalling progressed labour marketplace statuses.
In keeping with the record, this marks a trim from the 5.3 consistent with cent recorded in Q1 2024 and displays a steady fix from the 5.0 consistent with cent in Q3 2023.
The Labour Pressure Participation Price rose to 79.5 consistent with cent, up from 77.3 consistent with cent within the earlier quarter, highlighting larger personnel engagement.
The Function-to-Folk Ratio additionally confirmed important development, mountain climbing to 76.1 consistent with cent in Q2 2024 from 73.2 consistent with cent in Q1 2024.
This means {that a} upper share of the working-age nation was once gainfully hired throughout the length.
Additionally, self-employment remained dominant, accounting for 85.6 consistent with cent of overall act, an build up from 84 consistent with cent within the previous quarter.
Casual act additionally rose moderately to 93.0 consistent with cent, highlighting the economic system’s reliance on casual jobs.
City unemployment stood at 5.2 consistent with cent, a discount from 6.0 consistent with cent in Q1 2024.
Then again, rural boxes recorded a fair decrease unemployment fee of two.8 consistent with cent, in comparison to 4.3 consistent with cent within the earlier quarter.
This disparity highlights the ongoing position of agriculture and casual actions in rural act, contrasting with the city dependence on formal and service-driven jobs.
The early life unemployment fee (ages 15–24) dropped considerably to six.5 consistent with cent, in comparison to 8.4 consistent with cent in Q1 2024.
The record additional viewable gender disparities, with the unemployment fee for women at 5.1 consistent with cent, in comparison to 3.4 consistent with cent for men.
This means a necessity for centered gender-inclusive insurance policies to bridge the act hole.
The record learn, “The unemployment fee is outlined as the proportion of the labour drive no longer hired however actively looking for and to be had for paintings.
“Unemployment is likely one of the parts of labour underutilisation. The unemployment fee for Q2 2024 was once 4.3 consistent with cent, appearing an build up of 0.1 share level in comparison to the similar length latter life.
“The unemployment fee amongst men was once 3.4 consistent with cent and 5.1 consistent with cent amongst women.
“By place of residence, the unemployment rate was 5.2 per cent in urban areas and 2.8 per cent in rural areas. Youth unemployment rate was 6.5 per cent in Q2 2024, showing a decrease from 8.4 per cent in Q1 2024.”
Presen-related underemployment, which measures employees searching for alternative hours, dropped to 9.2 consistent with cent in Q2 2024 from 10.6 consistent with cent in Q1.
Labour underutilisation metrics additionally progressed, with LU2 (unemployment and time-related underemployment) lowering to 13.0 consistent with cent from 15.3 consistent with cent within the earlier quarter.
LU3 and LU4 metrics, which come with possible labour drive participation, additionally recorded declines to five.9 consistent with cent and 14.5 consistent with cent, respectively.
NLC tackles NBS
Talking with The PUNCH, the Nationwide Colleague Basic Secretary of the Nigerian Labour Congress, Chris Onyeka, criticised the actual unemployment figures exempt by way of the Nationwide Bureau of Statistics, labelling the record as a “voodoo document” that fails to mirror the stark realities Nigerians face day by day.
Onyeka brushed aside the declare that unemployment is lowering, calling it a “fabrication designed to mislead the public.”
He argued that the information was once inconsistent with the deteriorating financial terrain characterised by way of manufacturing facility closures, dwindling production job, and emerging inventories.
“Unemployment cannot be coming down in Nigeria when factories are closing shops,” Onyeka asserted.
“It cannot be coming down when there is increasing inventory and reduced consumer spending. If anything, unemployment is increasing,” he mentioned.
He additional wondered the method at the back of the NBS record, describing it as a “figment of imagination concocted by people who want to manipulate figures.”
In keeping with Onyeka, the rarity of alignment between the information and optic realities at the grassland undermines the credibility of the statistics company.
“Once data does not reflect reality, it loses relevance. Unfortunately, the NBS has lost credibility as a result of the data they continue spewing out,” he mentioned.
Onyeka challenged the NBS to confirm its claims by way of figuring out the sectors supposedly producing jobs. “Where are the jobs coming from? Is it from employers who are complaining of consumer resistance and slowing economic activities? It doesn’t add up,” he remarked.
Mentioning the commercial slowdown and prevalent dissatisfaction amongst employers, Onyeka insisted that the record contradicts the lived reports of Nigerians.
He likened the condition to what he described as “INEC-style manipulation,” a time period he impaired to attract parallels between perceived shortcomings in Nigeria’s election control and the NBS figures.
“Nigerians can go to court if they don’t like the figures. But the truth remains: the NBS has become a failed institution, much like INEC in the eyes of the public,” Onyeka concluded.
He argued in regards to the accuracy of reputable statistics in Nigeria and referred to as for a evaluation of the methodologies hired by way of executive businesses to assure that their knowledge appropriately displays the realities at the grassland.
LCCI reacts
The President of the Lagos Chamber of Trade and Business, Gabriel Idahosa instructed The PUNCH that the Nationwide Bureau of Statistics record of the unemployment fee at 4.3 consistent with cent in the second one quarter of 2024 was once a “technical improvement” and no longer reflective of financial realities.
Idahosa took exception to the NBS’ unemployment fee method, pronouncing “The technical improvement in the employment rate is more of a way that employment is now calculated; but the reality is that the economy is not looking like an economy where unemployment is significantly reducing.”
On his section, the Director of the Centre for Promotion of Personal Undertaking, Dr Muda Yusuf shared the similar sentiments with the LCCI President, rejecting the unemployment knowledge as “not a true reflection of the reality of the job situation.”
Yusuf instructed The PUNCH he discovered it tricky to believe the NBS knowledge and referred to as for a untouched method that displays the rustic’s condition.
“I believe we want a strategy that can mirror the truth of this condition a lot better than what we lately have. We wish to evaluation the method or have a parallel method that can mirror extra at the fact this is at the grassland.
“Employment is about making a living. You have an engagement that cannot guarantee a source of livelihood, no matter how minimal. I’m not sure we can regard that as employment. If you look at the challenges facing the economy and the complaints by those who are supposed to be employers of labour, then you will agree with me that not many of them are actually engaging people,” he stated.
The economist argued that many methods of self-employment hardly ever depend as significant act as ongoing reforms have worsened their efficiency as he cited the true sector’s third-quarter Rude Home Product figures.
“Many micro and small enterprises are struggling; that is if they are still in business,” Yusuf retorted. “And when you additionally have a look at the GDP knowledge – neatly the GDP knowledge preferably must mirror the fitness of the economic system – the large sectors that generally generate jobs are slowing unwell.
“Agriculture simply recorded 1.14 consistent with cent GDP expansion, production recorded lower than 1 consistent with cent (a zero.92 consistent with cent GDP expansion), industry the place now we have a quantity of casual sector gamers recorded 0.65 consistent with cent GDP expansion. That’s lower than 1 consistent with cent.
“Real estate, which is another major source of employment, recorded 0.68 per cent. So generally, we are looking at key sectors that create jobs that are slowing down compared to last quarter. So, where are the jobs coming from?”
Then again, Yusuf advised the Federal Govt and the non-public sector to believe find out how to assemble extra jobs and a maintaining condition for activity retention.
He remarked, “I believe there’s a quantity that we wish to do to assemble the condition for extra jobs to be created and retained by way of the marketers.
“For some of these workers, they can’t even afford transportation costs to go to their places of work. Many SMEs are struggling with the exchange rate issue, cost of transportation issues, energy issues, regulatory issues and challenges with the clearing of cargo. All of these things are depleting the amount of jobs.”
Day talking at the nation’s unemployment fee, the Nationwide President of the Affiliation of Petite Trade Homeowners of Nigeria, Dr Femi Egbesola, stated the reported relief in Nigeria’s unemployment fee, regardless of harsh financial statuses, may end up from a number of elements.
He stated, “Those elements come with adjustments in expansion within the casual sector. Financial pressures have driven extra society into casual or subsistence paintings, comparable to buying and selling, farming, or gig-based roles, which at the moment are categorized as metrics for act.
“One more reason is shifts in financial dynamics, or planned efforts to reclassify act statistics. For example, the edge for what constitutes act (e.g., operating only one occasion consistent with while) may decrease unemployment figures with out reflecting important enhancements in activity attribute or source of revenue ranges.
“Recent government Initiatives could be another factor. Government funding interventions, employment programs, or skill acquisition initiatives may create temporary or part-time jobs that count towards employment figures. However, while unemployment rates are a critical economic indicator, they don’t always capture the nuances of economic well-being, especially in a country like Nigeria with a large informal sector. A more comprehensive picture would include metrics like income distribution, poverty levels, and labour force participation rates.”
In the meantime, he asserted that the be on one?s feet in Nigeria’s GDP regardless of prevalent financial depression might be attributed to plenty of structural, methodological, and sector-specific elements.
He added, “GDP measures the full financial output and does no longer essentially mirror the distribution of wealth or the dwelling requirements of voters. One issue for the new GDP build up is the expansion in particular sectors. Sure sectors would possibly give a contribution disproportionately to GDP expansion, even though their advantages don’t trickle right down to the overall nation: Examples are Oil and Fuel, Agriculture, Business, and Exports, which would possibly inflate GDP figures.
“Another factor is inflation’s role in nominal GDP. Rising prices (inflation) lead to an increase in nominal GDP, as the value of goods and services appears higher. Increased spending on essentials like food, housing, and transportation contributes to GDP growth, even if many people are living in poverty. Also, government spending on infrastructure, social programs, or debt servicing can artificially inflate GDP without improving economic conditions for most citizens.”