In the latest Nigeria Labour Force Survey (NLFS) report by the National Bureau of Statistics (NBS), the third quarter of 2023 saw the rural unemployment rate climb to 4.0%, a substantial rise from the 2.5% recorded in the previous quarter.
This 60% increase in just three months highlights a growing crisis, with insecurity in farming regions significantly contributing to the uptick in joblessness.
Also, the rate recorded in Q3 2023 is the same rate recorded in the last quarter of the previous year, highlighting a cyclical trend in the rural unemployment rate.
This cyclicality suggests that the factors influencing employment in rural areas may have seasonal components or that the measures taken to address unemployment have yet to achieve long-term sustainability.
Self-employment is higher in rural area
The NBS report offers an in-depth look into the labour market, emphasising the labour force participation rate a measure of the working-age population actively engaged in the labour market.
Rural areas traditionally exhibit higher employment levels due to agricultural activities, reflected in the employment-to-population ratio.
In Q3 2023, this ratio stood at 71.1% in urban areas and 80.7% in rural settings. The predominance of self-employment in rural economies is evident, with 94.5% of employed individuals in these areas working for themselves, mainly in agriculture, compared to 80.3% in urban locales.
Also, the informal sector dominates rural employment, with a 97.2% informality rate among rural workers, highlighting the precarious nature of rural livelihoods and the urgent need for formalisation and support.
Insecurity and its Impact
A significant factor behind the surge in rural unemployment is the growing insecurity affecting farming, the backbone of rural economies. Conflicts and banditry disrupt agricultural activities, leaving many without work and exacerbating the unemployment crisis.
The unemployment rate’s rise to 5.0% in Q3 2023 from 4.2% in the previous quarter further illustrates Nigeria’s broader employment challenges. Urban areas have a higher unemployment rate (6.0%) than rural areas (4.0%), but the sharp increase in rural unemployment is particularly concerning due to its implications for food security and economic stability.
Insecurity hampers agricultural productivity and undermines the potential for rural development and diversification. Addressing these security challenges, therefore, is crucial for revitalising rural economies and creating sustainable employment opportunities.
- Nigeria’s security challenges include insurgencies in the northeast, banditry in the northwest, and communal clashes in central regions, severely impacting European operations and questioning the nation’s security strategies despite increased military spending.
- January 2024 experienced a significant surge in violence, with 261 lives lost in nine days due to attacks by terrorists, bandits, and communal violence, alongside the Boko Haram insurgency causing 2 million displacements and extensive property damage over seven years.
- The country faces a record high in kidnappings and nearly 9,000 conflict-related deaths in 2023, with the World Bank and FAO warning of a severe food security crisis affecting millions due to disrupted farming activities.
- The Federal Government and state governors are considering establishing state police to address these issues, as part of efforts to improve security, agricultural support, and rural entrepreneurship to tackle unemployment and ensure rural well-being.
- The National Bureau of Statistics (NBS) underscores the dire economic implications of this security crisis, with a significant uptick in rural unemployment threatening national food security and the livelihoods of rural populations.
