Nigeria’s unemployment rate to hit 30% by December –PwC

Nigeria’s unemployment rate to hit 30% by December –PwC

Nigeria’s unemployment rate is seen climbing to 30% by the end of the year as the pace of economic growth in Africa’s biggest economy slows further.

Multinational professional services firm, PricewaterhouseCoopers (PwC), foresaw in its September economic alert publication obtained from its website on Saturday , that unemployment could soar to 28% in the third quarter.

The statistics office had in August reported Nigeria’s unemployment rate stood at 27.1% in the second quarter, the first time it would issue such data in six quarters.

PwC analysts said a projected real Gross Domestic Product (GDP) of almost N280,000 is needed to absorb a single employed individual from Q2 2020 to Q4 2020 on account of the economic impact of the coronavirus pandemic.

The accounting firm leant on the International Monetary Fund’s forecast that the GDP will tighten by 5.4% in making its assumptions, adding that the labour force could expand to 80 million come year end.

“Some of the factors that account for the rise in the unemployment and underemployment rates include the low level of industrialisation in the country, slow economic growth, low employability and quality of the labour force, slow implementation of the national labour policy, in addition to lack of coordinating labour policies at the subnational level,” PwC concluded.

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