Tuesday, November 24, 2015 09:35AM / FBNQuest Research
The recent NBS data show that 475,180 jobs were created in Q3 2015, divided between 41,670 jobs in the formal sector, and 428,690 and 4,820 jobs in the informal and public sectors respectively.
When compared to the previous quarter, total job creation rose sharply by over 200% from 141,370. This sharp increase was mainly due to the informal sector, with rural agricultural activities the primary driver.
Typically, the third quarter coincides with the start of the farming season in Nigeria. Additionally, in the absence of new white collar jobs and social safety nets, jobseekers are leaning towards the informal sector in areas such as catering and tailoring.
The bureau’s report focuses on 18 sectors. Education emerges again as the leading source of new formal sector jobs in Q3 2015, accounting for 62% of the total. Manufacturing, agriculture, and trade contributed 7.5%, 10.6% and 3.6% respectively.
From the latest national accounts, education featured as the fastest growing sector in Q3. It expanded by 8.0% y/y (Good Morning Nigeria, 19 November 2015). Its role as the leading job generating sector was not surprising, considering that most school year cycles begin in Q3.
Formal construction created just 300 jobs in Q3, accounting for 0.7% of the total. The three tiers of government are the main employers in this sector and in view of the current macro challenges there has been little engagement.
Due to non-payment for both completed and ongoing projects, one of the country’s largest construction employers recently hinted that it could make substantial job cuts in the near future.
Business expansion, the easing of work burdens and the filling of vacancies emerged as the three principal reasons for hiring.
The Buhari-led administration is focused on addressing the country’s unemployment challenges.
Chris Ngige, the new minister of labour and employment, stated that under his watch the ministry would work in partnership with the private sector to generate jobs.
By receiving the baton during this economic slowdown, the minister is set to face roadblocks.