NBS says 85.6% of working-class Nigerians are self-employed 

The Nationwide Bureau of Statistics (NBS) has disclosed that 85.6% of Nigeria’s working-class inhabitants is self-employed, signifying the dominant function of self-employment within the nation’s labor market.

This discovering was highlighted within the NBS’ newest Q2 2024 Labor Power Survey, which additional reveals shifts in employment patterns pushed by financial and structural elements.

In its breakdown, the report divides employment into two major classes: staff and self-employed people.

Workers are these incomes wages or salaries, together with paid apprentices, whereas self-employed people, additionally known as own-account staff, function companies independently or with companions.

What the information says 

• The proportion of self-employed people noticed a slight enhance from Q1 2024’s 84%, regardless of falling from 88% recorded in Q2 2023.
• A gender-disaggregated evaluation emphasizes that whereas self-employment stays extra prevalent amongst ladies, males dominate wage-based employment. Females recorded a better self-employment price of 88.3%, in comparison with 82.2% amongst males. Girls are additionally extra prone to have interaction in casual employment, usually dealing with restricted entry to formal job alternatives.
• Regionally, rural areas exhibited considerably greater charges of self-employment at 94.3%, contrasting with 79.7% in city facilities, showcasing disparities in employment constructions between city and rural communities. The NBS attributed the excessive rural self-employment figures to the dominance of agriculture and trade-related actions in these areas.

Casual employment stays the dominant 

The NBS report reveals that casual employment continues to dominate Nigeria’s labor market, with 93% of whole employment recorded in Q2 2024.

• This represents a slight enhance from 92.7% in Q1 2024, highlighting the persistent reliance on casual work for livelihood throughout the nation.
• The information highlights that informality stays considerably excessive, notably amongst people with decrease ranges of schooling. Staff with no formal schooling are overwhelmingly engaged in casual employment, accounting for 99% of whole employment.
• In contrast, these with post-secondary schooling are far much less prone to work informally, with solely 26.6% of them engaged on this sector.
• When agriculture is excluded, the pattern persists, with the proportion of casual employment reducing to 14.7% for these with post-secondary schooling however remaining as excessive as 98.4% for these with out formal schooling.

Gender disparities are additionally evident, with ladies extra prone to be employed informally in comparison with males. Rural areas present even greater informality charges, the place 97.5% of staff are employed informally, in comparison with 90% in city areas.

This rural-urban divide emphasizes the function of agriculture and small-scale enterprises in driving rural employment, in addition to the restricted entry to formal job alternatives in these areas.

What it is best to know 

• Throughout different labor indicators, the employment-to-population ratio elevated to 76.1% in Q2 2024 from 73.2% in Q1 2024, reflecting a extra engaged workforce. The labor drive participation price additionally rose barely to 79.5% in Q2 2024, marking regular restoration from fluctuations in earlier quarters. This pattern is a sign of elevated financial exercise, notably in casual and self-employment sectors.

• Nairametrics earlier reported that the unemployment price in Nigeria decreased to 4.3% within the second quarter of 2024, reflecting a 1 share level drop from the 5.3% recorded in Q1 2024. Nevertheless, on a year-on-year foundation, the speed elevated barely by 0.1 share factors in comparison with the identical interval in 2023.
• The excessive prevalence of self-employment and informality not solely impacts job safety but additionally restricts entry to social protections similar to pensions, healthcare, and unemployment advantages. As Nigeria continues to grapple with financial challenges, guaranteeing higher help for casual staff whereas creating pathways towards formal employment will likely be very important for sustainable financial development and social improvement.