Unemployment Rate by Country

Unemployment is a critical economic indicator that reflects the health of a country’s labor market and economy. The unemployment rate measures the percentage of the labor force that is actively seeking work but unable to find employment. While a low unemployment rate generally signals a strong economy, a high unemployment rate suggests economic instability, potential poverty, and social challenges. Understanding how different countries compare in terms of unemployment rates offers insight into global economic trends and regional disparities.

Many factors influence unemployment rates, including economic policy, population growth, technological advancement, and social conditions. Countries facing conflict, political instability, or a lack of economic diversity often experience higher unemployment, while those with robust industries and favorable working conditions may maintain lower unemployment rates. In this article, we will examine both ends of the spectrum, starting with countries suffering from the highest unemployment and finishing with those that maintain the lowest rates.

Top 10 Countries/region with the Highest Unemployment Rate

1. Eswatini: 37.64%
2. Kosovo: 30.50%
3. South Africa: 27.99%
4. Djibouti: 26.26%
5. West Bank: 24.42%
6. Gaza Strip: 24.42%
7. Grenada: 24.00%
8. Botswana: 23.38%
9. Gabon: 20.36%
10. Congo: 20.05%

The countries listed above have some of the highest unemployment rates in the world. Eswatini tops the list with a staggering 37.64%, signaling a significant labor market crisis. Political instability, slow economic growth, and structural challenges are often the underlying causes in these nations. Kosovo and South Africa, for example, face issues like skill mismatches, youth unemployment, and a lack of sufficient economic diversification to absorb a growing labor force.

In many of these countries, high unemployment rates exacerbate poverty and social unrest. Nations like Djibouti and the West Bank/Gaza Strip deal with geopolitical challenges that hinder their economic development, making it difficult for them to generate enough jobs for their populations. This situation also creates strain on governmental resources, as welfare and unemployment benefits become crucial to sustaining large unemployed populations.

Top 10 Countries/region with the Lowest Unemployment Rate

• Qatar: 0.13%
• Cambodia: 0.24%
• Niger: 0.55%
• Thailand: 0.91%
• Burundi: 0.93%
• Falkland Islands: 1.00%
• Gibraltar: 1.00%
• Chad: 1.08%
• Isle of Man: 1.10%
• Cuba: 1.16%

On the other end of the spectrum, Qatar leads with an impressively low unemployment rate of 0.13%. Countries like Cambodia, Niger, and Thailand also boast rates below 1%, which is a sign of robust economic conditions or high rates of informal employment. In Qatar, low unemployment is largely due to its oil-rich economy, which creates an abundance of job opportunities, especially for expatriates.

However, low unemployment rates can also mask underlying issues, such as underemployment or a high reliance on informal work. For instance, in countries like Cambodia and Niger, many people work in subsistence agriculture or informal sectors, where jobs are plentiful but may not provide adequate income or stability. In some cases, strong government intervention and welfare policies, such as those in Cuba, also contribute to low unemployment rates.

Global Unemployment Rate Trends Over Time

Over the years, global unemployment rates have seen fluctuations due to economic cycles, technological advancements, and global crises like the COVID-19 pandemic. While some countries have managed to maintain low unemployment rates through strategic policies and economic growth, others have struggled with persistently high unemployment due to economic downturns, political instability, or a lack of job creation. The future of global unemployment will likely depend on how well countries can adapt to changing economic conditions, including the shift to digital economies and automation, which may displace traditional jobs but create new opportunities in emerging sectors.

Full Table

FAQs

• What is the highest unemployment rate in the world?
  • Eswatini has the highest unemployment rate at 37.64%.

• Which country has the lowest unemployment rate?
  • Qatar has the lowest unemployment rate at 0.13%.

• What is the global average unemployment rate?
  • The global unemployment rate tends to hover around 5.4%, though it varies widely by region.

Source

• CIA The World Factbook – Unemployment rate