The Hidden Cost of Underemployment in Nigeria

Nigeria does not only have an unemployment problem.

It also has a hidden productivity problem.

Many people are working. Fewer are fully utilised.

When conversations about Nigeria’s labour market arise, the focus is often on unemployment.

How many people are looking for work? How many jobs are being created? How quickly can young people enter the workforce?

These questions matter, but they do not tell the full story.

A more important question is often overlooked: what happens when people have jobs, but those jobs do not fully utilise their skills, potential, or capacity to contribute meaningfully to the economy?

This is the reality of underemployment.

Unlike unemployment, underemployment is less visible. People are working, earning an income, and participating in the labour market, yet many remain in roles that do not fully use their capabilities, provide sufficient earnings, or create meaningful pathways for progression.

For young people, this distinction is critical. Labour market participation does not always translate into productive or fulfilling employment.

The result is a workforce that is active, but not fully productive.

This has consequences beyond individual careers. When skills are underutilised, productivity declines, businesses struggle to access the talent they need, and economies fail to reach their full potential.

This is why the conversation must move beyond employment numbers alone.

It must also focus on employment quality.

Global labour discussions increasingly reflect this shift. The International Labour Organization’s emphasis on decent work reinforces the idea that the quality of employment matters just as much as access to employment.

For Nigeria, this is particularly urgent. As the country continues to experience rapid population growth and an expanding labour force, the central question is no longer only whether jobs are being created, but whether those jobs enable people to grow, build skills, and improve their economic outcomes over time.

This is one of the reasons workforce development must evolve beyond placement metrics.

Success should not be measured solely by whether people find work. It should also be measured by whether that work enables progression, strengthens capability, and improves long-term earning potential.

At WAVE, this perspective shapes how we think about employability. The goal is not only to connect young people to jobs but to create pathways that lead to stronger careers and sustained economic mobility.

As Nigeria continues to invest in skills and employment initiatives, we must broaden our definition of success.

Because the real challenge is not only helping people enter the workforce.

It is ensuring work leads somewhere.

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