According to the International
Labour Organisation (ILO), Africa’s working-age population is estimated
to have reached over 490 million in 2012, representing a quantum leap of
259% since 2000 at an annual compound growth rate of 2.8%. Therefore,
employment of the continent’s teeming labour population is key to
economic development within the region and indeed, globally.
Sub-Saharan Africa’s absorption of its
working-age population in employment compares favourably to other
regions as contained in the ILO’s 2013 global employment trends
report.Subsequently, total estimated number of jobs created in the
Nigerian economy for the first quarter of 2013improved by 12% over the
previous quarter.
This development, in line with the
latest job creation report released by the National Bureau of Statistics
(NBS), indicate that 174, 326 new jobs were added to the nation’s
economy. Overall, conducting quarterly labour force surveys is a
positive trend for Nigeria considering the paucity of jobs market data
across the continent, with the exception of few countries such as South
Africa and Mauritius. Comparably, Nigeria’s Q1 2013 new employment data
could be described as favourable to South Africa’s economy, which
created 44, 000 jobs in the same period, according to the country’s own
employment report.
With 53% of new employment, Nigeria’s
informal sector, constituted by over 17 million businesses &
enterprises,led the growth in total jobs reflecting the significant
contribution of that segment to the labour market and the overall
economy.This was followed by the formal sector with 41%, while the
public sector brought up the rear with 6% of new addition to the jobs
market.
Growth in the informal labour market is
dominated by sole proprietorships driven by male ownership of businesses
and enterprises, which accounted for 90% of establishments while the
balance of 10% is owned and managed by the female segment. Despite this,
in-depth data capture in the informal economy is a challenge.
Conversely, the female population
consistently accounted for a large portion of new jobs in the formal
sector with an average of 53% over the two quarters under review.The
growth in the female demography of the labour market was largely driven
by the Education and Health (and Social work) sectors in Q1 2013, which
accounted for 60% of total employment absorption in that demography. In
both genders, 64% of new jobs were full-time with the balance of 36%
being part-time.
Cumulatively, the education sector
contributed on average, 39% of total jobs created across both genders,
and has consistently accounted for a large share (though a drop from 50%
in Q4 2012) of the growth in the employment sector. Private sector
education continues to drive job creation; there are currently 51
private higher institutions in Nigeria according to the National
Universities Commission NUC), accounting for almost 40% of total
tertiary establishments in the country. Growth in the last three years
has been particularly significant with increase in private tertiary
institutions averaging 17% between 2011 and 2013.
Financial inter-mediation was a distant
second adding 23% of new employees. This was an improvement when
compared with 16% in Q4 2012. Furthermore, the sector maintained its
position as the second leading contributor to job creation over the last
two quarterly periods. This is followed by the health sector with 15%
of new addition to the labour market; growth in health sector employment
was largely driven by the nursing and midwifery associate professionals.
Even among the youth (15 – 35 years)
segment of the population, 32% of new jobs created were absorbed by the
education sector followed by 28% in the financial inter-mediation
industry. Furthermore, the managerial, professional and work positions
accounted for 51% of youth employment in Q1 2012, which was a major
shift from the previous quarter, where the leading employee position for
youths was in the clerical position with 35% of new jobs.
Overall, an analysis of the distribution
of total employed persons in Nigeria highlighted the fact that
secondary school leavers represented the bulk of 34% of jobs. Those who
never attended school accounted for 33%, while primary school education
followed with 21%. Post-secondary school education brought up the rear
at 12%. This was highlighted in a 2012 report published by the Campaign
for Democratic and Workers’ Rights in Nigeria, which stated that 45% of
the country’s workforce was characterized by “casual” employment,
including low-skilled informal and intermittent occupations.
However, there might be a changing tide
on the horizon. Occupationally, the managerial, professional and
technical workers have been the leading segment of the workforce hired
in recent times, representing 53% of staff cadre in the Q1 2013 period.
If sustained, this is a good development reflecting the quality of the
workforce being absorbed into the employment market. A distributive
analysis based on occupation revealed that sales, marketing and public
relations professionals took the largest slice of new employment with
17%.
In Q4 2012, two of the key reasons for
hiring by employers based on a survey conducted by the statistical
agencies comprised the replacement of an exited position (the highest at
30% of total respondents) and resultant business expansion (20% of
survey results). Consequently, 56,528 staff exited from various
businesses in the 3rd quarter of 2012. The bulk of job exit with 33% was
from the clerical staff cadre.
Of the total number of workers who
exited -58%were males and 42% were females. The education sector had the
most number of exits with 33.6 per cent of all exits. Manufacturing
sector with 22.6% ranked second and Health & Social work sector
ranked third with16%. Major reasons for employees leaving their jobs
were for educational advancement followed by employee incompetence.
However, by Q1 2013, there was a
significant change in the cause of new recruitment by employers. The
major cause for hiring by 11.3% of respondents was to fill out existing
positions as a result of the promotion of former occupants. The second
reason by 11.26% was the seasonal growth of businesses. Employment
engagement is on the rise across Africa but varies across regions.
Unlike the formal sector, in the public
sector, the reverse was the case with the male gender leading
significantly at 61% of new job creation. Secondary education teachers
led the fray across both population segments representing 16% of total
occupations in both the male and female demography. This was followed by
the general office clerk position at a distant 9% and managing
directors/chief executive cadre with 8%.
In spite of the positive developments in
the jobs market, much remains to be done. Unemployment rate is 24%
(youth unemployment accounts for 38% of total unemployment) and the
country ranks low, scoring less than one (0.471) in the Human
Development Index, placing Nigeria in the 153rd position out of 186
countries in the United Nations 2013 Human Development report.In Africa,
the country ranks 23rdout of 52 countries.
Despite this, IMF projections are
positive with 7.4% GDP growth on the back of high oil prices and robust
domestic demand. Economically, Sub-Saharan Africa is now the second
fastest-growing region globally.Growth without development, however, is a
challenge.
Employment only plays its
intermediate role between growth and development if it is productive.This
prompted the President in his 2011 budget speech to declare:
“Unemployment among our youth is one of our biggest challenges. The time
has come to create jobs (and) lay a new foundation for Nigeria’s
economic growth.”Consequently, the government has been promoting
policies, programmes and incentives to foster job creation and private
sector-led economic growth.
By: OMOSOMI OMOMIA
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