With unemployment and underemployment on the rise, Nigeria faces tremendous challenges in terms of sustainable job creation and productivity. In fact, the incidence of high unemployment has become a major socio-economic challenge over the past decade, despite strong economic growth.
In recent years, job creation and the quality of jobs have been marred by a slowdown in economic growth, and the recession. Latest available data from the National Bureau of Statistics (NBS) puts Nigeria's unemployment rate at 18.8% as at Q3'17. Two years prior, this rate was 9.9%. Similarly, the underemployment rate reached the highest on record at 21.2%, from 17.4% over the same period.
Nigeria's population is projected to rise to 410 million by 2050 (2018E: 206 million) . With this population, the country will rank as the third largest populated country globally. As such, implementing policies that will deliver inclusive growth and engender a productive labour force is imperative.
This report, through an empirical approach, examines the socio-economic drivers of unemployment in Nigeria, analyses the sectoral employment trends, and highlights the drivers of productivity growth in the services sector.