Lagos State Employment Trust Fund’s (LSETF) survey reveals that more than 46,000 jobseekers competed for jobs in Lagos, as of 2024.
The city, known as Nigeria’s economic heartbeat, is facing a tough labor market with limited job openings.
A recent report, the Lagos Economic Development Update (2025), sheds light on the growing challenges. Released by the Lagos State Ministry of Economic Planning and Budget, the report shows a widening gap between the high demand for jobs and the few positions available.
A survey by the LSETF, referenced in the report, examined job vacancies across public and private sectors from October 2023 to May 2024. The findings recorded 22,630 job openings, averaging just 2,837 vacancies per month, underscoring the mounting pressure in the labour market.
Among the most sought-after professionals were accountants, managers, ICT specialists, and finance experts. These fields accounted for nearly 61% of all vacancies, with accounting alone registering 4,447 openings.
However, demand was lowest in the services and sales industries, where vacancies only slightly increased from 157 in October 2023 to 179 in May 2024. The disparity highlights the increasing preference for high-skilled labour across the state.
The Honourable Commissioner for Economic Planning and Budget, Ope George, emphasised the government’s commitment to tackling these challenges.
“Lagos remains the economic nerve centre of Nigeria and a hub of innovation, investment, and opportunities within Africa. However, to maintain this leadership position, we must adopt forward-thinking policies and address skill gaps that hinder employability,” he said in the report’s foreword.
The report further identifies finance, ICT, and law as industries with increasing demand for skilled workers. However, salaries in these fields continue to lag behind, making it difficult for professionals to earn wages that match the rising cost of living in Lagos.
“The 2025 edition builds on past insights, highlighting critical issues such as capital importation, inflation, and macroeconomic outlook. We must bridge revenue gaps, address skill shortages, and enhance job creation strategies to secure an inclusive and sustainable future,” George added.
Salary trends: who earns the most?
The survey also shed light on salary distribution across various sectors. Management positions commanded the highest pay, with an average monthly salary of N215,000. Other well-paid sectors, including ICT, finance, and engineering, offered salaries ranging from N100,000 to N200,000.
In contrast, lower-paying fields such as transport, administration, sales, and education recorded salaries below ₦100,000, raising concerns about wage disparities in the labour market.
What you should know about the rise in job postings and salary adjustments
Some industries saw significant growth in job postings. The legal profession led the pack with a 58.82% increase, followed by ICT (38.71%), engineering (25.24%), and finance (25.13%). Meanwhile, the health sector was the only industry to record a decline, contracting by 2.71%.
Salary trends followed a similar pattern, with engineering roles seeing the highest salary growth at 100%, followed by ICT (39%), technician (37.5%), and education (31.82%). Notably, accounting and legal professions recorded no salary adjustments during the period.
A labor market oversaturated with jobseekers
While job demand is rising, the supply of jobseekers continues to outstrip available vacancies. Between January 2023 and March 2024, 46,450 jobseekers were recorded, averaging 3,318 per month.
Alarmingly, 51% of jobseekers had no qualifications, and 42% lacked prior work experience. Only 33% possessed both a degree and relevant experience, while 26% had neither, making their chances of employment in the formal sector slim.
The gender and employment divide
A closer look at the employment status of jobseekers reveals more challenges. Nearly half (46%) were first-time job seekers, 26% were employed but seeking better opportunities, and 28% were unemployed with prior experience.
The data also showed that jobseekers with at least a secondary school certificate (SSCE) made up 87.9% of the pool. However, over 50% may still struggle to secure skilled roles due to qualification gaps.
Why jobs were rejected
The survey identified several reasons why jobseekers turn down job offers. Low remuneration was the biggest deterrent, with 60.4% of new entrants citing poor salaries as their main reason for rejection.
Long commuting distances were another issue, particularly among experienced jobseekers (26%), while 14.5% of those seeking alternative jobs declined offers due to job monotony.
Breaking the employment barrier
Beyond salary concerns, jobseekers also face structural barriers to employment. Some of the biggest challenges include inadequate education, limited work experience, and discriminatory hiring practices based on gender, disability, or appearance.
Experts recommend targeted skills development programmes, vocational training, and job placement initiatives as solutions to these challenges.
The growing demand for ICT, legal, and engineering skills indicates the need for education reforms and workforce planning to ensure Lagos State’s labor market remains competitive and inclusive.
