Job Creation Rises by 20.4% in Q3 2016 and 95.6% in Q2 2016


Saturday, December 31, 2016 9:50 AM / NBS      

This Summary report contains the latest estimates for jobs created in the Nigerian economy for the second and third quarters of 2016. These estimates are the results of the Quarterly Job Creation Survey commissioned by the National Bureau of Statistics (NBS) in collaboration with the Central Bank of Nigeria.

The objective of the quarterly survey is to track the number of jobs being created in the economy within a given period, provide multisectoral and policy relevant data on the employment-generating sectors, seasonality in employment and the labour market.

The findings are categorized into Formal sector jobs, Informal sector and Public sector jobs. Formal jobs refer to employment generated in establishments that employ 10 persons and above, or formal professional services that employ less than 10 persons.

The Informal jobs are those generated by individuals or businesses employing less than 10 or those businesses operating with little or no structures e.g. those in Agriculture, Light Manufacturing, Trade, etc. While the Public Institutions are the Government Ministries, Departments, Agencies (MDAs), Government Parastatals, Academic and Research Institutions at Federal, State and Local government levels.

The Quarterly Job Creation survey is a nationwide survey, covering all 36 states of the federation including the Federal Capital Territory (FCT). A sample of 5000 establishments was taken across the country across all economic activities.

This round of the survey, for which estimates are being reported, achieved a response rate of 85.7 percent from the establishments selected in the sample, which is robust enough to generate reliable estimates. The following selected tables are the key findings from the surveys, a detailed report of the survey results will be published subsequently.

Findings of the 2nd and 3rd Quarter 2016 Survey
In the second quarter of 2016, the total number of new (net) employment recorded in the economy was 155,444, this was a 95.6% increase when compared with the preceding quarter and a 10.0% increase when compared to the second quarter of 2015.

As has been the case in previous quarters, the informal sector accounted for the largest share of new jobs, recording 67.9 % (105,543). This was followed by the formal sector, which accounted for 35.5% (55,124) of new jobs in quarter 2 of 2016. Public sector, for the third consecutive quarter recorded a negative growth in employment, with a figure of -5,223.

In the third quarter of 2016, the total number of jobs generated rose to 187,226 from the 155,444 generated in quarter 2, representing an increase of 20.4% quarter on quarter, but a decline of 60.6% year on year. The formal sector recorded 49,587 jobs, representing 26.5% share of new jobs in quarter 3.

The informal sector recorded a larger share of new jobs in quarter 3 when compared to the previous quarter, reporting a figure of 144,651 jobs, which represents 77.3% of new jobs in quarter 3. The Public sector again recorded a negative growth in employment, with a figure of -7,012 in quarter 3.

The reported negative growth in public sector job numbers over the last year has not been entirely surprising, as many state governments across the country have struggled to pay salaries, hence restricting the number of new intakes and in some instances placing a complete embargo on new employment into the public service.

Overall, the magnitude of employment in the economy has not been sufficient or adequate to meet the ever-growing labour market; hence the continuous rise in the level of unemployment in the country which stood at 13.3% in Q2 and 13.9% in Q3 2016.

Despite negative economic growth since 2016, the net jobs created still remains positive on the whole in both the formal and informal sectors meaning more jobs are being created despite job losses especially informal low paying jobs.

Positive net formal jobs in both q2 and q3 2016 were driven by the human health and social services sectors as well as agriculture and accommodation and food services, which accounted for about 90% and was responsible for keeping net jobs created positive in both q2 and q3 2016.

This reflects the current economic realities with only a few businesses still growing and employing, while many others are shedding jobs. While 18 of the 46 economic activities recorded negative net jobs created in q2 2016, 21 of the 46 economic activities recorded negative net jobs created in q3 2016. (Tables 3 and 4).

With the Nigerian labour force population rising by a five year average of over 2.6 million annually, the economy needs to generate the same level of jobs annually just to hold the unemployment rate at the current level of 13.9%.

Between Q1-Q3 2016, 3.7million people have entered the labour force with net jobs of 422,135 created within that period, giving a shortfall of 3.2million for Q1-Q3 2016. This has resulted in a rise in the combined unemployment and underemployment levels from 29.2% (10.4% for unemployment alone) at the beginning of 2016 to 33.6% (13.9% for unemployment alone) by end of Q3 2016.

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