The Central {Bank} of Nigeria’s (CBN) newest Buying Managers’ Index (PMI) report for July 2024 reveals that the Composite Employment Index continued its downward development for the seventh consecutive month, reflecting ongoing challenges within the labour market.
In line with the report, the index recorded 48.7 factors, indicating a contraction, although it marked a slight enchancment from the 48.3 factors recorded in June 2024.
The report learn: “At 48.7 index factors, the composite Employment Degree indicated contraction in July 2024 for the seventh consecutive month. The index improved in July 2024 when in comparison with the 48.3 factors recorded within the earlier month.”
Employment ranges in 18 subsectors declined
In line with the report, 18 subsectors reported contractions in employment, with the Printing & Associated Help Actions subsector experiencing probably the most vital decline.
In the meantime, the Major Steel subsector remained steady, exhibiting no change in employment ranges. Conversely, 17 subsectors reported will increase in employment, with the Petroleum & Coal Merchandise subsector main the best way with the very best employment ranges.
The report famous: “Eighteen subsectors reported a contraction in Employment, with Printing & Associated Help Actions recording the very best decline within the evaluation month. Major Steel subsector remained unchanged, whereas the remaining 17 subsectors reported elevated Employment Ranges with Petroleum & Coal Merchandise subsector having the upper Employment Degree.”
The continued contraction in employment ranges highlights the persistent difficulties confronted by companies in sustaining or increasing their workforce in a difficult {economic} surroundings.
The marginal enchancment within the index suggests a gradual restoration, however the total development stresses the necessity for focused {economic} insurance policies to stimulate job creation and help industries going through probably the most vital employment challenges.
Employment ranges drop in key sectors
The PMI, which measures the {economic} well being of the manufacturing, companies, and agricultural sectors, confirmed a slight enchancment within the employment index. Nevertheless, the determine nonetheless signifies a contraction in employment throughout the sectors.
The report highlights that whereas the general {economic} exercise confirmed marginal enchancment, the employment ranges haven’t saved tempo. This decline was most pronounced within the industrial sector, the place the employment index dropped to 47.0 factors, reflecting a persistent discount in workforce ranges throughout a number of subsectors, together with Printing & Associated Help Actions and Major Steel.
Within the companies sector, employment remained stagnant at 50.0 factors, with some subsectors experiencing progress whereas others reported contractions.
The agricultural sector additionally noticed a continued decline in employment ranges, with the index standing at 47.8 factors, pushed by vital drops within the Fishing/Fish Farming and Livestock subsectors.
What you must know
Primarily based on the final unemployment report by the Nationwide Bureau of Statistics (NBS), the unemployment price in Nigeria rose to five.0% within the third quarter of 2023 from 4.2% within the earlier quarter, which additional illustrates Nigeria’s broader employment challenges. City areas have a better unemployment price (6.0%) than rural areas (4.0%). Throughout Q3 2023, Nigeria’s labour pressure participation price stood at 79.5%, down from 80.4% in Q2 2023. Males exhibited a participation price of 80.9%, whereas girls had a price of 78.2%.
Nairametrics earlier reported that the CBN’s PMI report for July signifies a continued contraction in {economic} actions, marking the thirteenth consecutive month of decline since June 2023. In line with the report, the PMI for the month stood at 49.7 points- signalling a contraction in {economic} actions throughout the month however an enchancment from June which stood at 48.8 factors.
The PMI is calculated based mostly on responses in regards to the route of change in numerous features of respondents’ enterprise actions. An index above 50.0 factors indicators an growth in enterprise actions, whereas an index beneath 50.0 factors signifies a contraction. An index of precisely 50.0 factors displays no change in enterprise exercise.
The report famous that the rise in PMI for the month was on the again of growth in output stage, suppliers’ supply time and inventory of stock expanded whereas new orders and employment contracted throughout the interval.
