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10 Factors Affecting Employment in Nigeria


As contributors to the economic growth in Nigeria, one of the many factors that are worth considering when looking at the economic growth in Nigeria has to do with the factors that consistently influence the employment rate in Nigeria. Certain things may be adjusted if the cause is known to all the key players and the citizens; especially the employers of labor in Nigeria are the key players in the employment of other citizens in Nigeria.

The employability of people into the workforce of the country has been faced with a great deal of challenge ranging from government regulations to willingness of people to work and other factors. In this article, we will look at some of the reasons why people are not employed; why those who are of employment age and level are not employed to work in key sectors that will drive in change and development into our nation.

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What is Employment?

Employment is an agreement between two people to engage in paid owkr. In this case, what the employee does during work hours is greatly influenced by the laid down guidelines tendered by the employer.

Having a job or being employed is referred to as being employed, usually in exchange for money in the form of wages or salary. Typically, it entails working for an employer, whether full- or part-time.

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Nigeria’s Unemployment Profile

As at the year 2022, the rate of unemployment in Nigeria was estimated to be up to about 33%. In the year that preceded (2021) the unemployment rate was forecasted to be about 32.5percent. According to records, in the past years, the unemployment rate in Nigeria has been estimated to keep rising without a fall and as  at the fourth quarter of 2020, an estimated 33% of the workforce of the country were either without jobs or couldn’t meet up earns meet with the menial jobs they were engaged in.Information Guide Nigeria

Importance of Employment to Nigeria

  1. Economic expansion:

Through the production of revenue and taxes, employment generates money for people and aids in the general economic expansion of the nation. Factors Affecting Employment in Nigeria

  1. Reducing poverty:

By giving people a reliable source of income and enabling them to satisfy their fundamental requirements, employment helps to lower poverty levels.

Read Also: 10 Factors Affecting the Acceptance of Family Planning in Nigeria

  1. Human capital development:

The ability to work gives people the chance to expand their human capital generally and pick up new skills, which can boost their productivity and earnings potential. Romantic Love Messages

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  1. Social stability:

By lowering inequality and giving people a feeling of identity and purpose, employment helps to maintain social harmony.

  1. Higher Life Quality:

A higher quality of life is made possible by employment because it gives people more access to products and services, better housing, and better health care.

  1. Reduced crime:

People who are employed have a reliable source of income, which lessens their need to turn to unlawful means of earning a living.

  1. Government income:

Employment contributes to a rise in government revenue through taxes and other employee contributions, which may then be used to pay for infrastructure and public services. NYSC Portal

Read Also: 10 Factors Affecting Business Growth in Nigeria

  1. Reduced unemployment:

Work increases people’s access to employment possibilities, which enhances the efficiency of the labor market as a whole.

  1. Consumer Spending:

Consumer spending grows as a result of employment because people have more money to spend on goods and services, which can assist to boost economic activity.

  1. Increased quality of life:

Having a job gives people a sense of security and stability, which can enhance their general quality of life and mental health. Good Morning Love Message

Factors Affecting Employment in Nigeria

Economic conditions, governmental policies, and demographic trends are just a few of the variables that have an impact on employment in Nigeria. The following are 10 important variables that affect employment in Nigeria:

  1. Economic Expansion:

In general, a healthy economy results in more employment possibilities and greater salaries. But in recent years, Nigeria’s economy has failed to thrive, which has resulted in substantial unemployment and underemployment.

  1. Inflation:

High inflation can increase corporate expenses and make it challenging for companies to add new positions. Inflation has been a recurring issue in Nigeria, which has had an impact on employment rates.

  1. Government Initiatives:

Government initiatives may significantly affect employment in Nigeria. Policies that support investment in particular industries or sectors, for instance, can aid in the creation of new employment. But investment-discouragement measures may have the opposite impact.

Read Also: 10 Factors Affecting Commercial Agriculture in Nigeria

  1. Infrastructure:

Businesses’ capacity to create new employment may be impacted by the standard and accessibility of infrastructure, such as ports, roads, and power. The lack of proper infrastructure in Nigeria might make it challenging for businesses to run efficiently. JAMB Portal

  1. Education:

Access to and the quality of education can have an impact on a person’s ability to land a decent job. In Nigeria, many people lack the knowledge and credentials required to land a suitable job, and education standards are frequently low.

  1. Population Age And Gender:

Population, age and gender can have an impact on employment levels. The relatively young age of the population in Nigeria might result in high rates of youth unemployment.

  1. Corruption:

Corruption may make it challenging for companies to function, which can result in decreased employment rates. Corruption is a pervasive issue in Nigeria that has the potential to impact employment rates.

  1. Political Unrest:

Political unrest may make it challenging for businesses to function, which can result in decreased employment rates. Political unrest has become a big issue in Nigeria recently, which has had an impact on employment rates.

  1. Foreign Investment:

Foreign investment has the potential to improve the nation’s economy by bringing in new technology and expertise. However, Nigeria has seen little foreign investment, which has had an impact on employment rates.

  1. Employment Laws:

These laws can significantly affect the degree of employment. Nigeria’s lax employment rules and poor enforcement make it challenging for companies to add additional employees.

Read Also: 10 Factors Affecting Agricultural Extension Services In Nigeria


In conclusion, a variety of factors influence the employment levels in Nigeria, making unemployment and underemployment serious issues. Nigeria’s government and business sector will need to collaborate to establish an environment that is favorable to job creation and economic growth in order to overcome these difficulties.


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