NBS Unemployment Data a Fabrication – NLC, Business Groups Reject 4.3% Figure
Labour union and private sector question methodology as statistics agency reports drop in unemployment rate
Nigeria’s unemployment figures have sparked controversy as the National Bureau of Statistics (NBS) reports a decline to 4.3% in Q2 2024, down from 5.3% in the previous quarter. However, the Nigerian Labour Congress (NLC) and business leaders have strongly contested these figures, describing them as disconnected from economic realities.
Key Statistics Under Scrutiny
According to the NBS report, the labour market showed several positive indicators:
- Labour force participation increased to 79.5% from 77.3% in Q1
- Employment-to-population ratio rose to 76.1% from 73.2%
- Youth unemployment (ages 15-24) decreased to 6.5% from 8.4%
- Urban unemployment stood at 5.2% compared to 2.8% in rural areas
Labour Union Denounces “Voodoo Document”
The NLC has strongly rejected the unemployment figures, with National Assistant General Secretary Chris Onyeka labeling the report a “voodoo document.” Onyeka argued that the data contradicts visible economic indicators, pointing to factory closures, dwindling manufacturing activity, and rising inventories as evidence of increasing unemployment.
“Unemployment cannot be coming down in Nigeria when factories are closing shops,” Onyeka stated, questioning the NBS’s credibility. “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.”
Informal Sector Dominance
The NBS report highlighted that informal employment remains high at 93% of total employment, while self-employment accounts for 85.6% of jobs. These figures have raised questions about the quality of employment being measured and the methodology used to calculate unemployment rates.
Gender and Educational Disparities
The report revealed notable disparities:
- Female unemployment (5.1%) exceeded male unemployment (3.4%)
- Unemployment among those with secondary education stood at 7.6%
- The percentage of youth not in Education, Employment or Training (NEET) was 12.5%, with a higher share among females
Methodology Questions
Critics have called for a review of the NBS’s methodology in calculating unemployment figures. The NLC has challenged the bureau to identify the sectors generating the reported job growth, arguing that the current economic climate contradicts the possibility of significant job creation.
NACCIMA’s National President, Dele Kelvin Oye, echoed these concerns, highlighting the pervasive issues of underemployment and informal unemployment.
“While the statistics suggest improvement, many graduates and skilled workers remain unable to secure meaningful employment. It is disheartening to equate a statistical reduction with actual economic recovery or job creation,” Oye stated, questioning the validity of the reported decline in unemployment.
Call for Data Transparency and Reform
The controversy over unemployment figures comes at a time for Nigeria’s economy, with various stakeholders emphasizing the need for accurate data to inform policy decisions. The disconnect between official statistics and perceived economic realities raises important questions about how unemployment is measured and reported in Nigeria.
Both labour unions and industry stakeholders are calling for a more transparent and realistic approach to employment data collection and reporting, arguing that accurate statistics are essential for addressing the country’s economic challenges effectively.
This dispute over unemployment figures adds to ongoing debates about the state of Nigeria’s economy and the effectiveness of current economic policies in creating sustainable employment opportunities for its growing workforce.
