THE ISSUE OF UNEMPLOYMENT

The prevalence of unemployment in Nigeria is a significant concern for all stakeholders. It is essential to clarify the definition of unemployment and its measurement. Individuals classified as unemployed are those within the labor force who are not currently employed but are actively seeking work. The unemployment rate is determined by dividing the number of unemployed people by the total labor force and multiplying the result by 100 to obtain a percentage. According to the Nigerian Labor Force Statistics Report for Q1 2024, the unemployment rate stood at 5.3%, an increase from 5.0% recorded in Q3 2023. The same report indicates that 92.7% of those employed are engaged in informal sector work. Unemployment data constitutes a crucial metric used internationally to assess labor underutilization.

It is important to recognize that while statistics are valuable tools for decision making, they can also be open to misinterpretation. For instance, a 5.3% unemployment rate may suggest an employment rate of 84.7%, which would equate to a high achievement grade in academic terms. However, when actual numbers are considered, the impact becomes more evident. With Nigeria’s population exceeding 200 million and an assumed labor force participation rate of 60%, there can be over six million individuals being unemployed. These figures represent real people and families struggling to meet basic living standards.

The fundamental question arises: what is the personal impact of these statistics? Your response will reflect your unique interpretation of unemployment and its implications on your life, as well as your perspective on addressing the issue. Do you belong to the 5.3% facing unemployment directly or do you belong to the 84.7% contemplating how to contribute to a solution?

In my roles as a parent, mentor, and employer, I have observed a persistent disparity between the skills possessed by job seekers and those required by employers, which results in trust deficits and difficulties in hiring. Addressing this misalignment is essential for reducing unemployment rates and enhancing workforce engagement. There is considerable potential for individuals and organizations to contribute to closing this gap through effective skill assessment and development initiatives, presenting significant opportunities for economic advancement. I invite you to evaluate which aspects of the issue you are equipped to address and identify sustainable solutions you can propose. Assess your existing skills, as well as any additional competencies or resources that may be required and take actions.

Addressing contemporary issues and challenges such as unemployment and generating related opportunities is among the main objectives of LEAD360 with Steve Idowu. I encourage you to prioritize solution-oriented thinking over focusing on barriers, and I look forward to further engagement with you soon.

Deepest Regards, 

Steve Idowu