Unemployment and underemployment have been on the rise in Nigeria. On Wednesday August 31 2016, the Nigerian Bureau of Statistics (NBS) released the unemployment rate for the second quarter of the year which showed that unemployment rate has risen from 12.1 percent in the first quarter to 13.3 percent at the end of the second quarter.

Apparently, Nigerian banks and telecommunications companies were the largest donors to the unemployment market this year. In May, FBN Holdings Plc. laid off 1000 workers. In June, Diamond bank Plc. laid off 200 staff and in the same month, Ecobank Nigeria Plc. retrenched 1040 staff from their workforce. Just last week, 3000 workers were sacked in the shipping industry.

In Q2 2016, the population of the labour force increased to 79.9 million from 78.5 million in Q1 2016. In Q2 2016, the unemployment rate was highest for those within the ages of 15‐24 at 24.0 percent. While underemployment rate for the same group was 34.2 percent in the same quarter. This reveals that 58.3 percent of Nigerians within the age group of 15-24 are either unemployed or underemployed.

With the country falling into a recession, the level of unemployment is expected to increase as more companies will lay off staff in order to cut costs and optimise profit.

The charts below explains the current state of unemployment in Nigeria

The trend of Nigeria’s Unemployment Rate from 2010 to Q2 2016

Source: Nigeria Bureau of Statistics, Unemployment/Underemployment Report Q2 2016
Source: Nigeria Bureau of Statistics, Unemployment/Underemployment Report Q2 2016

Unemployment and Under‐employment from 2010 to Q2 2016

Screen Shot 2016-09-01 at 6.09.11 PM
Source: Nigeria Bureau of Statistics, Unemployment/Underemployment Report Q2 2016

Unemployment Rate by Gender between 2010 and Q2 2016

Screen Shot 2016-09-01 at 6.09.34 PM
Source: Nigeria Bureau of Statistics, Unemployment/Underemployment Report Q2 2016

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