₦airaland Forum

The former Federal Office of Statistics, now National Bureau of Statistics (NBS) has been calculating employment/unemployment statistics to guide policy over the years. During the 1960s, data from the then FOS reflected full-employment in the economy. Even when government was concerned about rising unemployment, the FOS from 1983 – 1998 published unemployment rates average as 4.0 per cent signaling full-unemployment.


From 1999 to 2013, the rates of unemployment published by NBS mirrored the concern of government that unemployment was not only a major challenge but also indicated noticeable rising trend among youth unemployment. For example, in 2010, the rate of unemployment stood at 21.4 per cent and rose to 27.4 per cent in 2012 and declined to 24.7 per cent in 2013.

These high rates clearly indicate that the economy has an unemployment problem. These rates are quite at variance with the 5-5.5 per cent full employment rates.

The NBS recently published new rates of unemployment for Nigeria’s economy from 2010 – 2014 based on a ‘new’ methodology, which suggests that the economy is almost at full–employment, as the rate for last quarter of 2014 stood at 6.4 per cent. The rate as at first quarter of 2015 was 7.5 per cent.

One is not so much concerned about the methodology used because they are based on certain assumptions, so if any of the assumptions is relaxed, the calculated rate may be different.

However, what is worrisome is the speech made by the Statistician General, on May 14, 2015 while welcoming the committee on the review of the framework for calculating unemployment rate in Nigeria.

He asserted that the ‘new’ rates of unemployment were based on scientific method and that persons should not be sentimental and ideological over unemployment figures, stating that it was not social science.

He further argued that the new rates were calculated on the basis of accepted international best practices. Is the situation different in the Nigerian economy? Every economy must take into account its own peculiarities in applying the concept and calculation of employment and unemployment.

While one would agree to some extent that sentiments ought to be set aside but the issues of ideology, science and international best practices must be challenged in the interest of knowledge in general and the Nigerian economy in particular. In measuring unemployment, countries have adopted the concept to their peculiarities.

For example, the International Labour Organisation (ILO) considers that a person who works for an hour a week is employed and often adduces reasons to support its position.

The same organisation also calculates the rate of vulnerable unemployment. The USA Labour Agency assumes that if you register as unemployed and did not show up after a week, you must be employed.

The same country considers the frequency, duration and incidence of unemployment in measuring the overall unemployment rate in the country. The USA economy also pays unemployment compensation to workers who lost their jobs among other welfare programmes.

http://www.nairausd.com/2015/06/unemployment-crisis-worse-than-nbs-new.html

https://twitter.com/

R

I think I am in support of this.

Instead of providing food...ur counting people who never chop...provide jobs instead of counting jobless people.

Give us our job even if na to dey wash your presidential cows

Going by everyday experience, it is against common sense to accept that only about 7 out of 100 persons are actually unemployed in Nigeria.

It is very misleading and dangerous for the country.

when you import palm oil, how do you expect employment to grow

atiakatata:
when you import palm oil, how do you expect employment to grow

Who told u we import palm oil?
Even if we do what stops u or any Nigerian out dear to write a business proposal to a bank and take up loan to stop that
How many unemployed Nigerians do u know
See there is a difference between unemployment And underemployment what we have mostin Nigeria is the later
Next time get ur facts straight

atiakatata:
when you import palm oil, how do you expect employment to grow

What did you mean