Macroeconomic misery worsens among working class – Rewane

False hopes of palliative magic and the monetary illusion of a wage review are not believed and will soon lead to a crisis of false expectations, as the level of macroeconomic misery amongst the working class in Nigeria worsen.
“All the macroeconomic indicators,
leading, coincidental, and lagging point towards a tough fourth quarter of 2023 and improving but difficult days in early 2024.
The naira is likely to trade close to N980/$ in October, the stock market sizzle may fizzle and inflation will get to 27 per cent in the fourth quarter. The mirage of 4.1 per cent unemployment is as illusionary as a pie in the sky. But there is a glimmer of hope as Nigerian policymakers have no choice but to stop making irrational decisions”, said Bismarck Rewane, Chief Executive Officer (CEO) of Financial Derivatives (FDC) Limited.
In its latest Lagos Business School (LBS) Breakfast session, Bismarck Rewane said the 4.1 percent unemployment rate is a new definition of it. Old methodology puts unemployment rate at 44 per cent. Rewane said 92.4 per cent of employed persons are in the informal sector.
He said, considering persons who have worked for an hour or more a week as employed is a huge joke. Under the old methodology, upper limit of working class was 65 years. But now the new one says working age simply 15 and above.
Going back to the hour thing. Minimum wage of N30,000 translates to N1,000 a day and that means N47 per hour. Rewane said, that is working poverty, and that poverty level in Nigeria is alarming, he said.
Making things worse, global food price index is increasing. After three months, it increased by 1.3 per cent to 123.9 points in July. This will bring about imported inflation.

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