Unemployment by Country 2022

As a proportion of the entire labor force, unemployment is defined as the percentage of jobless employees. The unemployment rate includes employees who are now unemployed but can return to work.

According to several estimates, the worldwide unemployment rate will be between 6.3% and 6.5% in 2021.

A lagging indicator, the unemployment rate does not influence or anticipate economic circumstances; rather, it reacts (increases and decreases) to them. In a robust economy, job opportunities are numerous, and unemployment is low.

There is a downward trend in employment and an upward trend in unemployment while the economy is downturned.

International comparisons of unemployment rates offer a challenge.

When comparing nations’ unemployment rates, it’s important to remember that not all comparisons are apples-to-apples. Unemployment is defined differently around the world. In certain nations, if a person is capable of working but is not actively employed, they are considered jobless.

People are only considered jobless in other nations if they look for employment. Unemployed people are those who are neither working nor searching for a job. The unemployment rates in various nations will be affected by these differing classifications.

Examine the South African unemployment rate in 2019 using the International Labour Organization statistics to observe this influence in action.

When all three criteria (not employed, available, and seeking) are taken into account, the unemployment rate is 29 percent, 38 percent when “not employed but available” is used, and 40 percent when “not employed but looking” is used.

According to an established international standard, most nations now report unemployment as a percentage of their workforce. This makes it simpler to compare the statistics across countries.

If you come across facts that you find unexpected, it’s essential to bear in mind the likelihood of mismatch. The data’s currentness is also an issue.

If you compare one country’s 2020 unemployment rate to another country’s 2015 rate, you’re likely to get an erroneous picture of the situation. Meanwhile, if there is no fresh data, previous data are still better than nothing.

Most Unemployed Countries in 2020 (World Bank data):

1. South Africa – 29.2%
2. Kosovo (partially recognized) – 26.2%
3. Djibouti – 26.1%
4. West Bank& Gaza Strip (occupied Palestine) – 25.9%
5. Equatorial Guinea – 25.0%
6. Botswana – 24.9%
7. Grenada – 22.9%
8. Eswatini – 22.7%
9. Lesotho – 22.4%
10. Gabon – 20.4%

Impact of Unemployment

There are several negative repercussions of unemployment, including increased depression and other mental health issues, greater crime rates, poorer economic production and consumption, fewer rates of volunteers, and a loss of skills.

Excessive inflation may arise due to very low unemployment, which is surprising (when everyone is employed and has money to spend, demand for products can outstrip supply, which causes a rise in prices).

As a result, the cost of living in many developing and/or low-income nations may rise, making it more difficult for inhabitants.

According to Bureau of Labor Statistics (BLS) calculations, there are six distinct ways to determine the unemployment rate in the United States. Jobless people are defined as able and willing to work and have actively sought employment in the last four weeks by the U-3 statistic.

The jobless do not include those with impairments who want to work but cannot do so. Unemployed persons are divided by the number of people in the labor force and multiplied by 100, according to the U-3 statistic.

The World Bank’s 2020 data shows the top 10 countries with the lowest unemployment rates:

1. El Salvador – 0.1% (tie)
2. Qatar – 0.1% (tie)
3. Myanmar – .05%
4. Solomon Islands – 0.7%
5. Chad – 1.1% (tie)
6. Thailand – 1.1% (tie)
7. Bahrain – 1.2% (tie)
8. Cambodia – 1.2% (tie)
9. Malawi – 1.3%
10. Palau – 1.4%

What we don’t know about unemployment

The fact that a nation has a low unemployment rate doesn’t always mean that its citizens live in a better, more sustainable environment.

ILO researchers revealed that a large portion of the world’s 3.3 billion technically employed individuals does so because of insufficient income, a lack of job stability, or even the lack of potential for promotion.

The COVID-19 pandemic’s impact on unemployment

Since the 2008 financial crisis, worldwide unemployment has fallen below 5%, according to a study from the International Labor Organization’s World Employment and Social Outlook: Trends 2019.

Due in no little part to the COVID-19 pandemic of 2020, however, that proportion did not continue long. According to the BLS, before the COVID-19 epidemic, the US unemployment rate was 3.8% (February 2020).

By May 2020, the jobless rate might reach 16 percent. Employment will fall to 7.9 percent by September 2020.

Unemployment may be classified into three categories.

Frictional, structural, and seasonal unemployment all fall under this category. The term “frictional unemployment” refers to unemployment when a person is actively looking for work.

As a result of a mismatch between job needs and employees’ abilities or locations, structural unemployment is a problem. Like tourism or farming, a population’s activity alters throughout the year, resulting in seasonal unemployment.

Also See: Underdeveloped Countries 2022

The following are the 10 countries with the highest unemployment rates:

1. South Africa (29.20%)
2. Djibouti (26.10%)
3. Equatorial Guinea (25.00%)
4. Botswana (24.90%)
5. Grenada (22.90%)
6. Eswatini (22.70%)
7. Lesotho (22.40%)
8. Gabon (20.40%)
9. Namibia (19.90%)
10. Curacao (19.10%)