The employment rate of the country is one of the key factors that measures the health of the country’s economy. It is one of the most important factors on which the economic development of the country depends.
There is no doubt that unemployment is one of the most stressful and most crucial issues occurring worldwide. There are several reasons for unemployment and there are several countries that are suffering from unemployment issues.
Here this guide will conclude and look at the 10 countries with the highest unemployment rate in the world, the reasons behind their unemployment, and whether their unemployment rate increased over the year.
- South Africa 29.8%
- Djibouti 27.9%
- Palestine 25.7%
- Eswatini 24.4%
- Somalia 20.0%
- Afghanistan 15.40%
- Spain 13.0%
- Greece 12.2%
- Nepal 11.1%
- Iran 11.0%
South Africa 29.8%
The unemployment rate in South Africa is 29.8%, which is quite a high unemployment rate. Due to this high unemployment rate, South Africa comes in first place when it comes to the 10 countries with the highest unemployment rate.
Basically in South Africa, the unequal distribution of jobs, foreign direct investment, and population growth are the potential factors that trigger unemployment. It has been noticed that South Africa since 2003 is securing its place in the list of top 10 countries with high unemployment rates.
The unemployment rate of South Africa has risen to 32.9% in the 2202’s first quarter. The lack of job opportunities for people in rural areas and poverty are other problems that have increased the rate of unemployment.
Djibouti 27.9%
Djibouti is the second country with the highest unemployment rate in the world. The unemployment rate of Djibouti is 27.9%. Although it is less than South Africa but is still one of the highest values.
Since the country is barren and there is little development in its industrial and agriculture sectors, there is a high unemployment rate. Moreover, because the country has a harsh climate and unskilled labor force it is the second country with the highest rate of unemployment.
Moreover, it has been seen that the country has faced ups and downs in its unemployment rate in the last few years. In 2019, its unemployment rate was 26.32% whereas in 2019 it was 28.05%.
Palestine 25.7%
The unemployment rate in Palestine is 25.7%. Because the country has faced several years of isolation, the economic development of the country is far behind other countries. This is one of the top reasons why it is at the third highest place when it comes to the list of top 10 countries with the highest unemployment rates.
Moreover, the continuous conflicts the country has faced with the Western world and the lack of opportunities resulted in an increase in the unemployment rate in the country. Palestine has faced fluctuations in its unemployment rate right from 1998 to 2023.
It has been noticed that the country’s unemployment rate increased from 10.63% in the year 2000 to 21.49% in the year 2001. Alternatively, in 2002 it was 27.46% and in 2011 it was 17.6%. Right now it is 25.7% which has declined from the previous year when it was 26.39%.
Eswatini 24.4%
Eswatini has a 24.4% unemployment rate and is the 4th country with the highest unemployment rate in the world. The country lacks quality education and because there is insufficient job creation, there is a high rate of unemployment in the country.
It has been noticed that the unemployment rate has been rising in Eswatini since 2016. It has increased right from 23% to 33% in 2021 and then decreased to 24.4% in 2023. Since Eswatini is a neglected country in the world this is another thing that impacts the unemployment rate.
Moreover, another major factor that triggers youth unemployment is Eswatini’s failure to enhance foreign direct investment and its weak business environment. Some highly skilled young graduates have no jobs in the country, just because either they have no opportunities or the opportunities they have got are very limited.
Somalia 20.0%
The unemployment rate in Somalia this year is 20.0%. Research and graphs say that since 2003, unemployment rate in Somalia has been continuously increasing and has reached up to 20.0% this year right from 18.46% in 2003.
The main reason behind the high unemployment rate in Somalia is political instability that has been active in the country for decades and civil war. This violence and civil war has triggered unemployment and poverty in the country leaving behind a high unemployment rate and financial crisis.
Even today the country is facing drought, impending famine, and extremely serious challenges to its social well-being and economy. Moreover, it is also facing threats to its security from different groups.
Afghanistan 15.40%
Afghanistan is another country in today’s world with a high unemployment rate. Its unemployment rate is 15.40%. The primary cause of high unemployment in Afghanistan is economic dependency and lack of focus of the country on agriculture and livestock sectors.
Additionally, the population growth, shortage of labor, and stoppage of international aid have also contributed to the increasing high unemployment rate. Moreover, the unemployment rate in Afghanistan has increased to 15.40% in 2023 from 2022 when the unemployment rate was 14.10%. The average unemployment rate in Afghanistan from 1991 to 2023 is 8.95%.
Spain 13.0%
Spain has an unemployment rate of 13.0% and is in 7th place when it comes to the 10 countries with the highest unemployment rate in the world. The main cause of unemployment in Spain is tight labor market regulations.
It has been noticed that there is a high level of structural unemployment in the country. The lack of industries in the country is the major reason resulting in a high rate of unemployment. Moreover, Spain is facing long-term unemployment issues.
This occurs because most of the students leave school early. The country has a high rate of school dropouts among students who have not even completed secondary education.
It has a historical long-term unemployment rate. From 1991 to 2024 Spain’s unemployment rate has had numerous ups and downs.
It has been noticed that there has been an increase in the unemployment rate in Spain over the years. This unemployment rate is currently 13.0%, it was 13.01% in 2022 and 14.78% in 2021. In 2020 then the unemployment rate was 15.3% and in 2019 the unemployment rate of Spain was 14.10%.
Greece 12.2%
Greece is another country that is facing a high rate of unemployment today. The unemployment rate of Greece is 12.2% making it stand in the top 10 positions when it comes to the list of countries with the highest unemployment rates.
Several structural causes resulted in a higher unemployment rate in Greece. Moreover, the youth of the country lack skills and expertise which is another major reason leading the country towards increasing its unemployment rate.
Moreover, the government debt of Greece is another reason for the increase in the unemployment rate. This is because due to high government debt, the government does not focus on improving the economy and only creates little to no possibilities for jobs for the youth.
The statistics show that the unemployment rate of Greece has overall increased from 1999 to 2023. The country’s unemployment rate was 12.6% in 2022 and now it is 12.2% whereas it was 14.71% in 2021 and 16.31% in 2020. We can say that the country’s unemployment rate has faced several ups and downs throughout the last 30 years but it is now decreasing since 2017.
Nepal 11.1%
Nepal has an unemployment rate of 11.1%. It has declined from 2021 when it was 12.22%. Nepal is another country in the world that faces the problem of unemployment.
The main cause of unemployment in Nepal is a lack of opportunities and a growing population. Both of these combine to produce a negative impact and increase the unemployment rate. There is a lack of well-paid jobs in the country that forces individuals and youth to go out.
Moreover, Nepal’s youth do not have skills and experience due to which they lack jobs. The poor education system also adds to the reasons why the unemployment rate in Nepal is quite high.
Iran 11.0%
Iran is the next country that has a high unemployment rate with 11.0%. The unemployment issue in Iran occurred mainly due to low levels of education and not giving importance to education. Lack of employable skills and experience also contributes towards an increase in the unemployment rate because employees not only lack education but also lack employable skills and have no experience.
Leaving school early leads to no degrees and no qualifications automatically limits training opportunities resulting in an increase in the unemployment rate. Moreover, the unemployment rate over the years in Iran varied a lot.
It was 10.82% in 2021 and 9.69% in 2020. Moreover, it was 12.98% in 2018 and 10.74% in 2019.
How does unemployment impact the economy?
Unemployment is one of the most frequently occurring issues in the world that is heavily impacting both societies and economies of countries worldwide. It not only creates financial instability but also affects the global distribution of wealth, and individuals’ livelihoods and is making the individuals socially unstable too.
Which areas of the world have the most high rates of unemployment in their countries?
The African continent struggles a lot with joblessness and unemployment issues. Several countries in Africa are suffering from high rates of unemployment. The countries such as South Africa, Equatorial Guinea, Botswana, and Namibia all have higher than 19% unemployment rates, which is quite a high value.
Which countries have the lowest unemployment rates?
Unlike the countries with high levels of unemployment rates, some countries have less than 1% employment rate. Countries like Qatar have a 0.1% unemployment rate, Cambodia has a 0.5% unemployment rate, and the Solomon Islands have a 0.7% employment rate. Moreover, countries like Moldova and Malavi have a 0.9% unemployment rate and Burundi has a 1.0 percent unemployment rate.
Are all the methods of calculation and presentation of the unemployment rate the same around the world?
No methods of calculation and presentation of the unemployment rate vary from one country to another. Some countries count disabled and permanently unemployed people when calculating the unemployment rate, whereas some countries only count insured unemployed. Moreover, there are some countries that count those in receipt of welfare benefits only and then there are some who only count unemployed students at college when it comes to unemployment rate.
Unemployment occurs when a skillful and talented person usually looks for a job but fails to get one because of the unavailability of the job in the country. Unemployment is the key factor that somehow depicts the economy’s health of the country.
Several countries have a high unemployment rate and top of the list is South Africa. The list also includes other countries like Nepal, Spain, Afghanistan, Somalia, Palestine, Iran and Greece.
We have described the top 10 countries with the highest unemployment rate, the causes of unemployment in those countries, and the unemployment trend over the years in them. Make sure to pay attention to the details mentioned above so you can have an idea about how unemployment has affected these countries.