KPMG reported that Nigeria’s unemployment rate has risen to 37.7% in 2022 and will increase to 0.6% due to the continuous flow of job seekers into the labor market. Unemployment remains a challenge due to slower-than-expected economic growth and the inability of the economy to absorb -5 million new arrivals, the international consulting firm noted in its recently published report, “KPMG Global Economy Outlook report, H1 2023.” in the Nigerian labor market every year.
“Unemployment is expected to continue to be a major challenge in 2023 due to the limited investment by the private sector, low industrialisation and slower than required economic growth and consequently the inability of the economy to absorb the 4-5 million new entrants into the Nigerian job market every year. Although the National Bureau of Statistics recorded an increase in the national unemployment rate from 23.1per cent in 2018 to 33.3per cent in 2020. We estimate that this rate has increased to 37.7per cent in 2022 and will rise further to 40.6 per cent in 2023.”
The report said in 2024, unemployment will increase to 43 percent. Meanwhile, inflation will skyrocket to 20.3 percent in 2023 and 20.0 percent in 2024.