Rural unemployment in Nigeria surged to 4.3% in the first quarter of 2024, up from 2.9% in Q1 2023, according to the latest Nigeria Labour Force Survey (NLFS) released by the National Bureau of Statistics (NBS).
The report highlights a worrying trend in rural areas where shrinking job opportunities, declining labour force participation, and persistent underemployment are driving significant hardship.
The labour force participation rate among rural Nigerians fell to 82.5% in Q1 2024, a decline from 79.5% in Q3 2023, indicating fewer people actively engaged in the job market.
Meanwhile, rural employment conditions remain precarious, with nearly 98% of rural workers in informal jobs. The overall employment-to-population ratio dropped to 73.2%, further reflecting the ongoing struggles in Nigeria’s rural economy.
Experts attribute the rising rural unemployment to multiple factors, including insecurity, climate change, and the struggles in key sectors like agriculture.
Economic analyst Bode Adegoke explains, “Insecurity in rural regions, particularly in the North, has disrupted farming activities. People are abandoning their farms due to insurgency, communal conflicts, and banditry, causing a significant loss in livelihood opportunities.”
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The effects of climate change have also worsened rural job losses. Frequent flooding has devastated farming and fishing activities, critical sectors for rural Nigerians.
Dr. Aisha Bello, a development economist, adds, “As climate-related disasters become more common, many rural communities are being forced to shift from agriculture, which remains their primary employment source, resulting in higher unemployment.”
The growing number of discouraged job seekers in rural areas, which rose to 5.0% in Q1 2024 from 3.0% in Q3 2023, signals an increasing frustration in securing work. This trend, coupled with a rural underemployment rate of 11.8%, points to a wider problem of labour underutilization.
To mitigate the crisis, international bodies such as the International Monetary Fund (IMF) are recommending urgent interventions.
The IMF recently urged Nigeria to expand its cash transfer programs to rural areas, warning that without targeted assistance, the rural unemployment crisis could deepen further.