Nigeria Set To Have The World's Highest Unemployment Rate According To Bloomberg

Nigeria is set to break the record for the highest number of unemployed people, according to Bloomberg. In a report published on Friday, the news magazine released a post stating that a third of the population is either unemployed or underemployed.

This isn't a new development, reports last year were released that disclosed that one in two Nigerians in the country's labor force is unemployed or underemployed- which means working in a job that doesn't adequately utilize the individual's time, skills, or qualification. 

In 2021, the unemployment rate in the country jumped to 33.3 percent, about 1 percent more than analysts speculated, making Nigeria the country with the second-highest unemployment rate, standing behind Namibia at 36.8 percent. 

This isn't the first time Nigeria is on a bad list, in 2020, the country surpassed India with the highest rate of people living in extreme poverty, with 40 percent of the population living in poverty. This translates to about 80 million Nigerians living below the poverty line of $1 a day.

While Nigeria is a top exporter of oil in Africa, a position that has helped create wealth and accounts for more than half of government revenue, the government has failed to diversify the economy, resulting in gross financial inequality. All attention and funds have been diverted to the elite-dominated oil sector, which leaves other industries in lack of infrastructure, favorable policies, and funding needed for growth. 

The rapid population growth the country is currently experiencing isn't a good sign for the current unemployment and poverty statistics, at the current rate of 2%, the United Nations estimates that the Nigerian population will get to 400million by 2050 from 209 million it currently is at. 

There is a straight line that can be drawn between unemployment and the high poverty rates in Nigeria. Lack of employment is responsible for depriving people of income to meet living expenses. 

Unemployment can result in a financial crisis and reduce the purchasing capacity of a country, which leads to poverty. 

Unemployment is a major obstacle to economic growth, and slow economic growth is a causative factor of poverty. The unemployment statistics being churned out doesn't imply that Nigeria is looking to get out of poverty anytime soon.