A World Bank/National Bureau of Statistics (NBS) study using recent International Labour Organisation (ILO) guidelines for computing Labour Force Statistics is set to disclose a sharp drop in unemployment statistics from its present estimate of 33% in the country.
The new methodology, proposed at the 19th International Conference of Labour Statisticians (ICLS) was, among other things, designed to reduce errors and produce representative data, increase efficiency in the data collection process, improve data credibility and update the nation’s Labour Force statistics in line with international best practices.
Against this background, authoritative sources reveal that some of the new parameters now include the calculation of the numbers of employed persons who work at least one hour for pay or make a profit during the period under the review, as against the former yardstick that included only those who work for 20 hours a day.
Aside from this, it was learnt that “those engaged in farming for personal use only, otherwise known as subsistence agriculture, will no longer be considered as part of the employed population. Statistics for such persons will now be produced separately, as subsistence agriculture will now be recognized as own-use production of goods and services”
Added to this according to the credible source is that data collection will now last for a 12-month period, in contrast to the old methodology where data collection was done each quarter. This approach will allow for capturing seasonal changes which affect the labour market which will in turn enhance data quality and credibility.
“The continuous data collection approach will enable quarterly and annual publication of the Labour Force Survey report. The quarterly report will only report national estimates of a few major indicators like the unemployment rate, employment, underemployment rate, and persons in subsistence agriculture, disaggregated by sex”
On the other hand, an annual report with the complete labour force survey data, representing the labour statistics for the year, with all possible indicators covered by the survey, will be published. National and state estimates of the indicators would be published at the end of the year.
The sources stressed that “This means that Labour force statistics will now be produced every quarter, without fail. It also means that we will have access to reliable and up-to-date information on interrelated Labour Force indicators like Working Time in Employment, subsistence farming, and others”
Furthermore, the working age population will now be those aged 15 and above, as opposed to the previous methodology, which capped the working age at 64 years, with many people now able to be engaged in different occupations including consultancies, coaching, mentoring, teaching, management, advisory and organisational work in their post-64 years.
Besides, a new ILO-modelled questionnaire has been adopted for the survey, leading to a big change to enable the collection of more comprehensive data on various indicators using the definitions recommended by the 19th International Conference of Labour Statisticians in 2013.
“This new questionnaire contains several sections, including Employed at Work, Temporary Absence from Employment, Agricultural Work and Market Orientation, Main Job Characteristics, Secondary Job Characteristics, Working Time in Employment, Unemployment, and Out of Labour Force. With information from this new questionnaire, the government and policymakers can gain a whole picture of the labour situation and make more targeted policies”
The world, according to the World Bank/NBS researchers is changing, and so is the way we collect, analyse, and interpret data. “The adoption of these guidelines will help to improve our understanding of Labour Market Indicators and reflect the unique nature of the Nigerian Labour Market” the source noted.
The new standard for labour market indicators in Nigeria will paint a more comprehensive picture of the Nigerian Labour Market. This means we will have more detailed information about the labour market conditions beyond employment, unemployment, and underemployment.
“The importance of credible data for good policymaking cannot be overemphasized, and the need for a robust methodology that reduces errors and produces representative and usable data is crucial. The new methodology will help provide untainted information for government decision-making and policy evaluation, ensuring that we have accurate and reliable data that reflects current realities” the source added.
Stay ahead with the latest updates! Join The ConclaveNG on WhatsApp and Telegram for real-time news alerts, breaking stories, and exclusive content delivered straight to your phone. Don’t miss a headline — subscribe now!
