A glimmer of hope shines on the Nigerian labor market as analysts at Meristem Securities Ltd. predict a potential rise in hiring this year fueled by an anticipated economic recovery. Despite a challenging 2023 marked by job losses and rising inflation, the report anticipates increased business activity pushing up labor demand and potentially lowering unemployment.
The optimism stems from several factors. Policy reforms implemented by the government, particularly in the oil sector, are projected to contribute to a modest GDP growth of 3.1% in 2024, an improvement over the 3.0% estimated for 2023. Additionally, the exodus of skilled workers from Nigeria could create further job opportunities for those left behind.
However, experts caution that challenges remain. Inflation, ballooning public debt, and a weak business environment could dampen growth prospects. The recent petrol price hike and naira devaluation, while intended to drive reform, have put pressure on small businesses and manufacturing, leading to job losses.
Despite these concerns, companies are expected to adopt a more strategic approach to hiring in 2024. With an eye on efficiency, employers will prioritize acquiring the best talent for specific roles, potentially leading to a shift towards more skilled jobs.
