KPMG predicts Nigeria’s unemployment rate may hit 40.6%

KPMG has said Nigeria’s unemployment rate will rise further to 40.6 percent in 2023.

In its report titled ‘Global Economic Outlook’, KPMG stated that the figure is based on its estimates.

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,” the professional services firm said in the report.

Continuing, it said, “Although lagged, the National Bureau of Statistics recorded an increase in the national unemployment rate from 23.1% in 2018 to 33.3% in 2020.

We estimate that this rate has increased to 37.7% in 2022 and will rise further to 40.6% in 2023.

Nevertheless, we expect telecommunications, trade services, as well as an expected recovery in the oil sector, on account of measures being taken to tackle security issues, to drive our forecast of 3% growth in 2023,” the firm said.

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