The Nigerian Labour Congress (NLC) has dismissed the latest unemployment figures released by the National Bureau of Statistics (NBS), describing the data as disconnected from reality and “a fabrication designed to mislead the public.”
The NBS report, released on Monday, stated that Nigeria’s unemployment rate declined to 4.3% in the second quarter of 2024, down from 5.3% in Q1 and 5.0% in Q3 2023. It also highlighted an increase in the Labour Force Participation Rate to 79.5% and improvements in other employment indicators, such as the Employment-to-Population Ratio, which rose to 76.1%.
However, the NLC and members of the Organised Private Sector (OPS) rejected the findings, arguing that they contradict the economic challenges Nigerians face daily.
NLC Criticizes Report
The Assistant General Secretary of the NLC, Chris Onyeka, described the report as a “voodoo document” that fails to reflect the stark realities of factory closures, dwindling manufacturing activity, and reduced consumer spending.
“Unemployment cannot be decreasing when factories are shutting down and businesses are struggling to survive. The data is a figment of imagination concocted to manipulate public perception,” Onyeka said.
He called for transparency in the NBS’s methodology and demanded evidence of the supposed sectors driving job creation. “Where are the jobs coming from? Certainly not from employers battling declining consumer demand and rising inventories,” he added.
Private Sector Reacts
The President of the Lagos Chamber of Commerce and Industry (LCCI), Gabriel Idahosa, and the Director of the Centre for Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, echoed the NLC’s concerns.
Idahosa referred to the report as a “technical improvement” stemming from changes in the method of calculation rather than genuine economic growth. “The reality is that the economy is not creating the jobs the figures suggest,” he said.
Yusuf also questioned the validity of the data, noting that sectors traditionally responsible for job creation, such as agriculture, manufacturing, and trade, showed minimal growth in Q3 GDP figures.
“Agriculture recorded just 1.14% GDP growth, manufacturing 0.92%, and trade 0.65%. With these numbers, it’s hard to reconcile where the claimed job growth is coming from,” Yusuf stated.
Gender Disparities and Informal Employment
The NBS report noted that female unemployment stood at 5.1%, compared to 3.4% for males. It also highlighted that self-employment accounted for 85.6% of total employment, with informal jobs making up 93% of the workforce.
Dr. Femi Egbesola, President of the Association of Small Business Owners of Nigeria, argued that the drop in unemployment figures might reflect a surge in informal or subsistence jobs rather than quality employment.
“People are being pushed into gig-based roles or low-income activities due to economic pressures, which artificially lowers unemployment figures,” Egbesola said.
Call for Policy Action
The critics urged the Federal Government and private sector to focus on creating sustainable jobs and improving job retention. They highlighted issues such as rising inflation, energy costs, and the exchange rate crisis, which continue to erode the capacity of businesses to sustain employment.
“The unemployment rate should be measured alongside income levels, poverty rates, and labour force participation to provide a more accurate picture of economic realities,” Yusuf concluded.
Despite the NBS’s optimism, the debate over the credibility of its methodology underscores growing concerns about transparency in government data and its alignment with the lived experiences of Nigerians.