Captains of industries have hinted on factors responsible for jobs disappearance in Nigeria as the National Bureau of Statistics (NBS) reported that the unemployment rate rose from 27.1 percent to 33.3 percent from December to March 2021.
The NBS’s report stated that the number of unemployed Nigerians rose to 23.19 million in the fourth quarter (Q4) of 2020 on the back of job losses occasioned by the outbreak of COVID-19 pandemic and its stifling impact on businesses during the period.
According to managing director/CEO, Highcap Securities, David Adonri, socioeconomic conditions in the country are responsible for the situation. Adonri said the increase in unemployment rate to 33 percent wasn’t surprising.
Adonri said: “The increase in the unemployment rate of labour to 33 percent in Nigeria is not surprising. The prevalent socioeconomic conditions in the country are precursors to this parlours situation. If things continue the way they are, the situation can get worse.
“Nigeria degenerated to this dangerous level of unemployment owing to the absence of population control and excessive supply of unskilled labour.
“As a result of population explosion due to lack of birth and migration controls, the economy is overwhelmed with excess liquidity of people.
On his part, Uche Uwaleke, a lecturer in Capital Market Studies at the Nasarawa State University, said since the GDP growth rate since 2015 has been weak and below population growth rate, the unemployment rate is bound to be high.
Uwaleke said: “First, we have to recognize that sustainable economic growth, measured by GDP growth rate, is a necessary condition for economic development and by extension low unemployment rates.
“Sadly, GDP growth rate since 2015 has been weak and below the population growth rate. In this condition, the unemployment rate is bound to be high.
“Second, it is equally important to realize that the quality of economic growth is critical to job creation. Before 2015, GDP growth rates were relatively high averaging about six percent in the preceding five years. “Yet unemployment and poverty rates were high.
This is because the GDP growth rates witnessed during those periods were non-inclusive in the sense that they were powered more by the oil sector than the employment-elastic sectors. As you know, the oil sector employs an insignificant proportion of the labour force.
“Third, poor infrastructure, especially power, insecurity and general hostile business environment has not encouraged entrepreneurship and micro businesses.
Also speaking about the jobs disappearance, Dangerous path Analyst and Head of Investment and Research, Fidelity Securities Limited, Victor Chiazor, said Nigeria’s unemployment figure shows the country is heading on a very dangerous path.
He warned: “If nothing is done to reverse this disturbing trend, it may take decades for us to recover from the repercussions of this position.
“We got here by failing to build buffers around the Nigerian economy and eventually exposed the country to external shocks during the first term of President Buhari when we saw oil prices drop on the back of a massive oil glut and the rising efficiency in U.S. Shale oil.
Yusuf LCCI DG Director General, Lagos Chamber of Commerce and Industry, Muda Yusuf, also speaking, said the growing unemployment in the country reflects the state of the economy.
Yusuf said: “It is difficult for an economy in recession or an economy that is stagnating to create jobs. It is therefore important to ensure an effective stimulation of the economy to ensure that the economy regains momentum and arrests the worsening joblessness in the country.
“There is a strong relation between investment growth and employment generation. And for investment to grow, the business environment must be conducive, and investors’ confidence must be restored.”