85.6% of working-class Nigerians are self-employed - NBS says

The National Bureau of Statistics (NBS) reports that most Nigerian workers (85.6%) are self-employed, showing how self-employment dominates the country’s labor market. This was revealed in the NBS Q2 2024 Labor Force Survey, which also highlights changes in job trends caused by economic and structural factors. Key Findings: Employment Breakdown: Workers fall into two groups: employees (those earning wages) and self-employed individuals (running their own businesses). Self-employment rose slightly from 84% in Q1 2024 but is lower than 88% in Q2 2023. Gender Trends: Women have higher self-employment rates (88.3%) than men (82.2%). Men dominate wage-paying jobs, while women are more involved in informal work due to fewer formal job options. Rural vs. Urban Employment: Self-employment is more common in rural areas (94.3%) than in urban centers (79.7%), driven by agriculture and trade. Informal Employment Dominates: Informal jobs make up 93% of employment in Q2 2024, up slightly from 92.7% in Q1. People with less education are more likely to work informally (99%), while those with post-secondary education have a much lower rate (14.7%). Women and rural workers are more likely to have informal jobs. Labor Indicators: More people are participating in the workforce, with the employment-to-population ratio rising to 76.1% in Q2 2024 (from 73.2% in Q1). The labor force participation rate also increased to 79.5%, reflecting more economic activity. Unemployment Rates: Unemployment dropped to 4.3% in Q2 2024, down from 5.3% in Q1, but slightly higher than Q2 2023. Challenges and Recommendations: High levels of self-employment and informal work reduce job security and limit access to benefits like pensions and healthcare. For sustainable growth, Nigeria needs to support informal workers and create more opportunities for formal employment.

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