In this AfDB paper an attempt is made to show the structural nature of jobless growth in Nigeria. This is done from the perspective of, firstly, structural transformation and its effect on the resultant sectoral composition; secondly, from labour market dynamics; and thirdly, from production organisation of sectors that are driving GDP growth. AfDB found that the rate of unemployment rose by 1.1% a year between 2000 and 2010.

This is caused, on the supply side, by a 2.5% annual increase in the number of new entrants into the labour market; and on the demand side, by sectors’ inability to create sufficient number of jobs. Job creation increased only by 1.4% a year. AfDB attributed this to capital intensive growth as seven of the nine broad sectors studied are capital intensive and together they accounted for 61% to 74% of the GDP growth. In addition, the structural nature of jobless growth is evident on country’s employment intensity of growth.