KPMG has reported that Nigeria’s unemployment rate will continue to rise and hit 40.6% in 2023.
This was revealed in the multinational’s latest report titled, “Global Economic Outlook” for the first quarter of the year 2023 accessed by AMBusiness.
According to the report, unemployment is projected to persist as a significant challenge in 2023 due to the limited investment by the private sector, low industrialization, and slower-than-required economic growth.
It reads in part, “Unemployment is expected to continue to be a major challenge in 2023 due to the limited investment by the private sector, low industrialization and slower than required economic growth and consequently the inability of the economy to absorb the 4-5 million new entrants into the Nigerian job market every year.”
According to the National Bureau of Statistics, there has been a rise in the national unemployment rate from 23.1% in 2018 to 33.3% in 2020, although there has been a lag.
“We estimate that this rate has increased to 37.7% in 2022 and will rise further to 40.6% in 2023,” KPMG said.
The report touched on the elevating inflation rate in the country. Also, the slow growth rate of the 2023 Nigeria’s Gross Domestic Product.
The expected growth in Nigeria’s Gross Domestic Product is predicted to come from three key drivers, according to the report.
Firstly, there will be a continuous recovery in household consumption, which will likely increase due to the end of the pandemic-induced recession and an expected reduction in inflation rates.
Secondly, the non-oil sector is expected to sustain its performance, with sectors such as agriculture and services expected to contribute significantly to the country’s GDP.
Finally, there will likely be a recovery in oil production, which suffered a decline due to pipeline vandalism, oil theft, and other operational challenges in recent years.
