Unemployment rate: Time to revisit Nigeria’s economic formations with synthetic policies

Attempt to peruse the Nigerian economy as a strong pillar in the assessment of the state-of-the-nation most recently, has largely been characterised with entanglements of clumsy strings of categorical imbalances which largely transcend the spheres of economic influence to every other spheres of life in the Country. The infusing impact that the state of the economy bear on the entire fabric of the Country is one of unwholesome sensations. It is apparent that the harshness of the economy is one which is shaping the architectures of socialisation in this present dispensation.

The worsening of the prevailing economic experience is most profoundly a constructive force reshaping the mode of interactions, transactions and reasoning in the Nigerian society presently. The state of socio-economic and political formations have been widely affected by the prevailing economic conditions. It is now apparent the underlying psychological formations of human and institutional frameworks are continually receiving alterations to the negative end by the strings of impacts brewing from worsening economic conditions.

The rate of unemployment in the Country is one of the emphatic branches of the signs of a wobbling economy. The deepening of unemployment profile in recent time has been a subject of concern as observers of social trends have continued to trail the overbearing preponderance of social ills and illegal operations to the worsening of unemployment rate in the Country. Figures released by the National Bureau of Statistics (NBS) on Monday further revealed that Nigeria’s unemployment rate has worsened with a rise from 27.1 per cent in the second quarter (Q2) of 2020 to 33.3 per cent in the fourth quarter of 2020. The NBS stated in its report on ‘Labour Force Statistics: Unemployment and Underemployment report – Abridged labour force survey under COVID-19 (Q4, 2020) that this translates to 23.19 million Nigerians who are unemployed. During the reference period, while the computed national unemployment rate rose from 27.1% in Q2, 2020 to 33.3% in Q4, 2020, the underemployment rate decreased from 28.6% to 22.8%.

The report partly read: “During the reference period, the computed national unemployment rate rose from 27.1 per cent in Q2, 2020 to 33.3 per cent in Q4, 2020, while the underemployment rate decreased from 28.6 per cent to 22.8 per cent. A combination of both the unemployment and underemployment rate for the reference period gave a figure of 56.1 per cent. This means that 33.3 per cent of the labour force in Nigeria or 23,187,389 persons either did nothing or worked for less than 20 hours a week, making them unemployed by our definition in Nigeria. This is an additional 1,422,772 persons from the number in that category in Q2, 2020. Using the international definition of unemployment, the rate was computed to be 17.5 per cent.”

The quarterly unemployment and underemployment report indicated that when considered by educational status, those reporting A ‘levels as their highest qualification had the highest rate of unemployment with 50.7%, followed by those with first degree/HND at 40.1%. Under the age-groupings, the highest rate of unemployment was recorded among the 15-24-year age-group with 53.4%, followed by those aged between 25-34 with 37.0%, together the youth population recorded an unemployment rate of 42.5%. In the case of underemployment by age grouping, those aged between 55-64 recorded an underemployment rate of 25.7%, the highest amongst the age groups. This was followed by those aged between 45-54 with 24.4%, while those with the lowest underemployment rate were those aged between 15-24 with 19.8%. A combination of unemployment and underemployment rates shows that those aged between 15-24 reported a combined rate of 73.2%, showing a serious challenge for the age-group in secure full-time employment. Female unemployment was highest among the genders with 35.2% while male was 31.8% during the reference period.

A similar case was recorded for underemployment, 24.2% was reported for females, while males reported an under-employment rate of 21.8%. The unemployment rate among rural dwellers was 34.5%, while urban dwellers reported a rate of 31.3%. In the case of underemployment, rural dwellers reported a rate of 26.9%, while the rate among urban dwellers was 16.2%.

It is apparent by record that the rate of unemployment and underemployment among the youth, particularly those in their most productive age between 15 and 34 years is highly problematic. The rise in the spate of social disorder and the spread of illegal escapades spreading as wild fire cannot not be argued not to be unconnected with the worsening profile of unemployment in the Country. Most recently, the records of social vices and insecurity challenges have begun to heighten to a pressuring level which the Government is finding difficult to curtail. It is indisputable that the records of social ills and illegal operations may not subside in any reasonable way with heightening of unemployment profiles. The formations of the socio-political architectures of every organised society can only find true expression of law and order when citizens are productively engaged under well organised structures of economic operations. Anything short may begin to brew storms of negative circumstances bearing resemblance to the primitive state of human cohabitation where the formation of life reflects the struggle of disarray of activities with the force of the survival of the fittest.

It is high time the Government began a rejigging of economic policies to bear resemblance with the corresponding needs of the prevailing situations of the Nigerian economy. It is imperative that in-depth envisioning be given to pragmatic approaches to deal with strains which have continued to give expression to worsening impacts on the economy. It is required that priority be given to the arms of the core principles of the Country’s macroeconomic formations. It is therefore important for the Government to convene economic summits with terms of reference to deeply look into reconciling the myriads of economic policies informing the workings  of the Nigerian economy. The terms of reference should profoundly include measures of developing overarching system of operations with clear definitions giving expression to the interconnectivity of the workings of all existing policies with bearings on the Nigerian economy. The aim should be tailored towards identifying, remodeling, and where possible jettisoning non-comeplementary policies which are counterproductive to the demands of the present state of the economy. In this light, all policies should be reformed and challenged to give expression to the demands of responding to the pressing demands of the economy within a working system of controls to redirect the course of the economy. It is therefore important under this system, that existing gaps leaving spaces of deficiencies be covered up with strategic policies which correspond to the need they are meant to serve. Hence, it is imperative that synthetic approach be employed to give synchronising effects to existing policies informing the workings of the Nigerian economy with the infusion of new ones to cater for existing gaps.