Nigerian Unemployment Rate To Rise To 41% This Year – KPMG
KPMGKPMG, a global audit and tax advisory firm projects an increase in Nigeria’s unemployment rate to 40.6% compared to 2022’s 37.7%.
This disclosure was made in KPMG’s International Global Economic Outlook report for H1 2023 on Tuesday.
The limited investment by the private sector and the slow economic growth resulting in the inability of the economy to absorb new entrants into the job market is a major challenge.
According to the report, GDP growth is expected to continue at a slow pace of 3% in 2023, due to the loss of economic activity that characterizes political transitions.
KPMG further stated that GDP will be negatively affected by an anticipated decline in the global economy in 2023, trade and financial flow implications included.
The report indicates that the Naira Redesign Policy, which was introduced in Q4 2022 and Q1 2023, and its effects on certain non-oil sectors such as manufacturing, trade, accommodation, food services, transportation, and other services, would also negatively affect growth, thereby slowing down overall GDP growth in 2023.
The report was optimistic about the resurgence of significant aspects of the economy, stating that the oil sector, telecommunications, and trade services would recover, as measures to address security issues are being taken.
Nigerians are advised to brace up for a major challenge associated with unemployment, which is projected to continue in 2023.
The inability of the economy to absorb millions of new entrants into the job market can be attributed to the limited investment by the private sector and low industrialization.
Moreover, the slow pace of GDP growth in 2023 is expected to continue due to political transitions and the effect of a declining global economy on Nigeria’s a trade and financial flow.
The introduction of the Naira Redesign Policy and its implications will also negatively affect GDP growth.
Nonetheless, the telecommunications sector, trade services, and the oil sector are expected to see improvements.
