In Nigeria today, underemployment is emerging as a low-intensity war. Everyone knows it exists but no one will speak of it. The question is no longer whether people can find jobs, but whether those jobs utilise their skills, offer sufficient wages, or provide stability.
Reports indicate that the streets are filled with university graduates riding motorbikes for hire, while skilled professionals languish in jobs far below their qualifications. This isn’t just a job crisis; it’s a crisis of underemployment.
According to the International Labour Organisation (ILO), “Underemployment reflects underutiliation of the productive capacity of the employed population, including those which arise from a deficient national or local economic system”. In other words, underemployment is a phenomenon where people work in roles that barely scratch the surface of their potential. The real struggle is not about joblessness; it’s about being trapped in low-paying, unfulfilling jobs, a reality that haunts the modern Nigerian worker. Underemployment is the real silent struggle.
As of the last quarter of 2022, Nigeria’s unemployment rate was a staggering 33 per cent, but the underemployment rate, at 22 per cent, painted an even more insidious problem. This is particularly concerning because underemployment reflects a deeper structural issue in the economy: while people may technically be working, the roles they hold fail to utilise their skills, education, or potential fully.
Today, underemployment driven by a variety of factors. The most significant factor is the mismatch between education and job market needs. Universities, today, produce graduates in fields with limited job opportunities, leading to underemployment.
Also, the informal sector is dominant. Over 60 per cent of Nigeria’s workforce operates within the informal sector, offering low-paying and unstable jobs.
Then there are systemic challenges, such as economic instability and limited industrial growth. The lack of development in key sectors such as manufacturing, agriculture, and technology has further contributed to the underemployment crisis.
Moreover, there is the issue of technological disruption. Take, banking for instance, digital platforms and automated services have displaced many traditional roles. Bank tellers, for example, have seen their numbers drastically reduced as mobile banking has taken off. While technology has created new opportunities, it has also displaced many workers, leaving them unemployed or forced into lower-wage jobs.
Today, the rise of the gig economy has introduced new forms of employment, particularly among Nigeria’s youth. Freelancers in digital marketing, software development, and graphic design often find themselves underpaid and overworked, with little to no job security. The promise of flexibility has come at the cost of security and sustainability.
The consequences are dire. Underemployment stifles economic growth by limiting the productivity and innovation that comes from utilising skilled labour. When a large portion of the workforce is underemployed, the nation’s output diminishes, leading to slower economic growth.
This creates a vicious cycle in which underemployment further depresses job creation, keeping the economy from fully recovering.
In addition, the frustration of being trapped in unfulfilling jobs takes a toll on the mental health of many Nigerian workers. The resulting stress and anxiety of the reality of limited job opportunities and stagnant career prospects can lead to mental health issues such as depression and feelings of hopelessness.
Nigeria’s underemployment crisis has continued to fuel brain-drain, as many skilled workers seek opportunities abroad. Healthcare professionals, engineers, and IT experts are increasingly moving to countries where their skills are in higher demand and where they can earn better pay.
To effectively combat underemployment, Nigeria needs to address the root causes of the issue.
Firstly, it is time to revamp the education system. Nigeria’s educational institutions must align more closely with the needs of the labour market. This means focusing on practical skills, vocational training, and STEM education. Universities should collaborate with industries to create programs that equip students with the skills required for high-demand jobs.
Secondly, talks of diversifying the economy must now move beyond talks. The government must prioritise diversification; it must move away from an over-reliance on oil and gas. Sectors like agriculture, manufacturing, and technology hold tremendous potential for job creation and should be supported through targeted policies, incentives, and investments.
There must be a deliberate effort to support entrepreneurship. Encouraging entrepreneurship and small business growth can create new job opportunities for Nigerians. It requires providing better access to finance, business training, and mentorship, especially for young people seeking to build sustainable businesses.
The gig economy is ripe for regulation. The rise of gig and freelance work demands stronger labour protections. Offering social safety nets like health insurance, retirement savings plans, and standardising pay structures for freelance workers, are issues that require attention.
Underemployment, rather than unemployment, has quietly become the defining crisis for the Nigerian labour market today. As more workers find themselves stuck in roles that fail to utilise their talents or offer meaningful financial rewards, the economic and social consequences are becoming increasingly apparent. Without a concerted effort to address underemployment, Nigeria risks stifling its potential for growth, innovation, and stability.
*Eromosele, a corporate communication professional and public affairs analyst, wrote via: elviseroms@gmail.com*
