Unemployment Rate (%): Percentage of the labor force that is unemployed

The global unemployment landscape offers valuable insights into the economic health and labor market dynamics of countries worldwide. Utilizing data from The Heritage Foundation for January 2022 and January 2021, this analysis examines the countries with the highest and lowest unemployment rates, explores regional trends, and discusses factors influencing these figures.

Countries with the Highest Unemployment Rates in 2022

As of January 2022, South Africa leads with the highest unemployment rate at 28.7%, followed by Lesotho at 24.7% and Eswatini at 23.4%. These high percentages reflect significant challenges in job creation and economic development within these nations. The top ten countries with the highest unemployment rates are:

  1. South Africa - 28.7%
  2. Lesotho - 24.7%
  3. Eswatini - 23.4%
  4. Gabon - 20.5%
  5. Namibia - 20.4%
  6. Saint Vincent and the Grenadines - 20.3%
  7. Armenia - 20.2%
  8. Libya - 19.4%
  9. Jordan - 18.5%
  10. North Macedonia - 18.4%

These high unemployment rates are often associated with factors such as political instability, economic sanctions, lack of industrial diversification, and educational gaps that limit workforce readiness.

Comparison Between 2021 and 2022 Data

Comparing the data from January 2021 to January 2022 reveals shifts in unemployment rates across various countries. For instance, Syria had the highest unemployment rate in 2021 at 43.5%, but it is not listed in the top ranks for 2022, possibly due to data unavailability or improvements in economic conditions. South Africa remained consistently high, moving from 28.2% in 2021 to 28.7% in 2022.

Notable changes include:

  • Greece: Decreased from 17.2% in 2021 to 16.9% in 2022.
  • Spain: Slight decrease from 14% in 2021 to 15.7% in 2022, indicating a worsening situation.
  • Brazil: Increased from 12.1% in 2021 to 13.7% in 2022.

These fluctuations may result from pandemic impacts, policy changes, or shifts in global economic conditions affecting trade and investment.

Regional Trends and Economic Factors

High unemployment rates are prevalent in certain regions:

  • Sub-Saharan Africa: Countries like South Africa, Lesotho, and Namibia face structural economic issues, including reliance on specific industries and inequality.
  • Middle East and North Africa: Nations such as Libya and Jordan are affected by political instability and conflicts disrupting economic activities.
  • Latin America and the Caribbean: Countries like Saint Vincent and the Grenadines experience economic vulnerabilities due to reliance on tourism and agriculture.

Economic factors contributing to unemployment include inflation, currency devaluation, and external debts that limit government spending on job creation programs.

Countries with Low Unemployment Rates

On the other end of the spectrum, several countries report remarkably low unemployment rates. As of January 2022, Cambodia has the lowest rate at 0.3%, followed by Niger at 0.7% and Burundi and the Solomon Islands both at 0.8%.

  1. Cambodia - 0.3%
  2. Niger - 0.7%
  3. Burundi and Solomon Islands - 0.8%
  4. Thailand and Laos - 1.0%
  5. Rwanda - 1.4%
  6. Myanmar - 1.8%
  7. Madagascar and Liechtenstein - 1.9%
  8. Vanuatu - 2.0%

These low rates may be attributed to high levels of informal employment, where many individuals work in unregulated sectors not captured in official statistics. Additionally, agricultural economies tend to have lower reported unemployment due to subsistence farming practices.

Impact of the COVID-19 Pandemic on Employment

The COVID-19 pandemic has significantly affected global unemployment rates. Many countries experienced increased unemployment due to lockdowns, reduced economic activity, and disruptions in supply chains. For example:

  • United States: Unemployment rose to 8.3% in 2022 from 3.7% in 2021.
  • Canada: Increased from 5.6% in 2021 to 9.5% in 2022.
  • Italy: Slight decrease from 9.9% in 2021 to 9.3% in 2022, possibly due to government intervention.

Government stimulus packages, unemployment benefits, and job retention schemes have played crucial roles in mitigating the impact on employment in various nations.

Unemployment in Developed vs. Developing Countries

Developed countries often have better mechanisms to handle unemployment through social safety nets and economic policies. For instance, countries like Japan and Switzerland have low unemployment rates of 3% and 4.9% respectively. In contrast, developing countries may lack such infrastructure, leading to higher unemployment and underemployment.

However, it's important to note that low unemployment rates in some developing countries might not reflect positive economic conditions but rather the prevalence of informal labor markets.

Factors Influencing Unemployment Rates

Several factors contribute to the unemployment rates in different countries:

  • Economic Policies: Fiscal and monetary policies that stimulate growth can reduce unemployment.
  • Education and Skills: Mismatch between workforce skills and job requirements can lead to higher unemployment.
  • Technological Advancements: Automation and digitization may reduce the need for labor in certain sectors.
  • Political Stability: Stable governments attract investment and promote job creation.
  • Global Economic Conditions: Trade relations and global demand influence domestic employment.

Conclusion

The unemployment rates across countries highlight the diverse economic challenges and opportunities faced globally. While some nations struggle with high unemployment due to structural issues, others maintain low rates that may require further analysis to understand underlying labor market conditions. Continuous monitoring and tailored economic policies are essential for addressing unemployment and fostering sustainable economic growth.

Unemployment Rate By Country January 2022 (%, January 2022)

Country %
1 South Africa 28.7
2 Lesotho 24.7
3 Eswatini 23.4
4 Gabon 20.5
5 Namibia 20.4
6 Saint Vincent and the Grenadines 20.3
7 Armenia 20.2
8 Libya 19.4
9 Jordan 18.5
10 North Macedonia 18.4
11 Sudan 17.7
11 Botswana 17.7
12 Costa Rica 17.1
12 Saint Lucia 17.1
13 Bosnia and Herzegovina 16.9
13 Greece 16.9
14 Tunisia 16.7
15 Micronesia 16.2
16 Montenegro 15.9
17 Guyana 15.8
18 Spain 15.7
19 Colombia 15.4
20 Haiti 14.5
21 Bahamas 14.4
22 Sao Tome and Principe 13.9
22 Turkey 13.9
23 Brazil 13.7
23 Iraq 13.7
24 Cape Verde 13.4
24 Yemen 13.4
25 Somalia 13.1
26 Algeria 12.8
26 Barbados 12.8
27 Uruguay 12.7
28 Zambia 12.2
29 Georgia 12.1
30 Afghanistan 11.7
30 Albania 11.7
30 Argentina 11.7
31 Djibouti 11.6
32 Chile 11.5
33 Iran 11
34 Mauritania 10.7
35 Egypt 10.5
36 Republic of the Congo 10.3
37 Morocco 10.2
37 Panama 10.2
38 Gambia 9.6
39 Canada 9.5
39 Ukraine 9.5
40 Honduras 9.4
41 Italy 9.3
42 Equatorial Guinea 9.2
43 Venezuela 9.1
43 Serbia 9.1
44 Syria 9
44 Nigeria 9
45 Dominican Republic 8.9
45 Samoa 8.9
46 Suriname 8.7
47 France 8.6
48 Sweden 8.5
49 Brunei 8.4
49 Lithuania 8.4
49 Jamaica 8.4
49 Comoros 8.4
50 United States 8.3
51 Latvia 8.2
51 Saudi Arabia 8.2
52 Kyrgyzstan 7.9
53 Finland 7.8
53 Belize 7.8
54 Angola 7.7
55 Paraguay 7.6
56 Tajikistan 7.5
56 Mali 7.5
57 Eritrea 7.4
58 Cyprus 7.2
58 Portugal 7.2
58 Maldives 7.2
58 Croatia 7.2
59 Senegal 7.1
59 Mauritius 7.1
59 India 7.1
60 El Salvador 7
61 Slovakia 6.8
61 Kuwait 6.8
62 Trinidad and Tobago 6.7
62 Luxembourg 6.7
63 Lebanon 6.6
63 Australia 6.6
64 Estonia 6.5
65 Azerbaijan 6.3
66 Ecuador 6.2
66 Peru 6.2
67 Kazakhstan 6.1
68 Uzbekistan 6
68 Belgium 6
68 Malawi 6
69 Ireland 5.9
70 Austria 5.8
70 Nicaragua 5.8
71 Bulgaria 5.7
71 Denmark 5.7
71 Russia 5.7
71 Zimbabwe 5.7
72 Bolivia 5.6
73 Bangladesh 5.3
73 Belarus 5.3
74 Singapore 5.2
74 Slovenia 5.2
75 Timor-Leste 5.1
76 United Arab Emirates 5
76 Burkina Faso 5
76 China 5
76 Iceland 5
76 Oman 5
77 Switzerland 4.9
78 Fiji 4.8
78 Romania 4.8
78 Sri Lanka 4.8
79 Guatemala 4.7
79 Mexico 4.7
79 Moldova 4.7
79 Pakistan 4.7
80 DR Congo 4.6
80 Israel 4.6
80 Malaysia 4.6
80 New Zealand 4.6
80 Norway 4.6
80 Sierra Leone 4.6
81 Ghana 4.5
81 Taiwan 4.5
82 Guinea 4.4
82 Hungary 4.4
82 Nepal 4.4
82 Tonga 4.4
82 Turkmenistan 4.4
83 Central African Republic 4.3
83 Germany 4.3
83 Mongolia 4.3
83 United Kingdom 4.3
84 Bahrain 4.1
84 Indonesia 4.1
84 South Korea 4.1
84 Malta 4.1
84 Netherlands 4.1
84 Togo 4.1
85 Cuba 3.9
86 Bhutan 3.7
87 Cameroon 3.6
87 Poland 3.6
88 Ivory Coast 3.5
88 Qatar 3.5
89 Mozambique 3.4
89 Philippines 3.4
90 Liberia 3.3
91 Guinea-Bissau 3.2
92 Japan 3
92 Kenya 3
93 Czech Republic 2.9
94 Ethiopia 2.8
94 North Korea 2.8
95 Papua New Guinea 2.7
96 Benin 2.5
97 Uganda 2.4
98 Chad 2.3
98 Vietnam 2.3
99 Tanzania 2.2
100 Vanuatu 2
101 Liechtenstein 1.9
101 Madagascar 1.9
102 Myanmar 1.8
103 Rwanda 1.4
104 Laos 1
104 Thailand 1
105 Burundi 0.8
105 Solomon Islands 0.8
106 Niger 0.7
107 Cambodia 0.3

Data from The Heritage Foundation

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