Unemployment is one of the most important indicators of the
economic and social well-being of a country. It measures the percentage of
people who are willing and able to work but cannot find a job. Unemployment can
have negative effects on individuals, families, communities, and society as a
whole, such as reduced income, lower living standards, increased poverty,
social exclusion, mental health problems, and crime.
According to the International Labour Organization (ILO), the global
unemployment rate increased from 5.4% in 2019 to 6.5% in
2020, resulting in an additional 114 million people being unemployed.
The pandemic also reduced the total hours worked by 8.8%,
equivalent to 255 million full-time jobs.
However, the impact of the pandemic on unemployment has been
uneven across countries and regions, depending on the severity of the outbreak,
the public health measures taken, the fiscal and monetary policies implemented,
and the structure and resilience of the labor market. Some countries have
managed to contain the virus and support their workers and businesses, while
others have faced prolonged lockdowns and rising job losses.
In this article, we will explore the unemployment statistics
around the world in 2023, based on the latest data and forecasts from various
sources. We will look at which countries have the highest and lowest
unemployment rates, how they compare to their pre-pandemic levels, what are the
main factors driving their performance, and what are the challenges and
opportunities they face in the post-pandemic recovery.
| Global Unemployment Rate by Year | |
|---|---|
| 2019 | 5.4% |
| 2020 | 6.5% |
| 2021 | 6.3% |
| 2022 | 6.1% |
| 2023 | 5.9% |
Which countries have the highest unemployment rates in 2023?
| Country | Unemployment Rate in 2023 | Rank |
|---|---|---|
| South Africa | 34.7% | 1 |
| Kosovo | 26.2% | 2 |
| Djibouti | 26.1% | 3 |
| West Bank & Gaza Strip | 25.9% | 4 |
| Equatorial Guinea | 25% | 5 |
| Botswana | 24.9% | 6 |
| Grenada | 22.9% | 7 |
| Eswatini | 22.7% | 8 |
| Lesotho | 22.4% | 9 |
| Gabon | 20.4% | 10 |
South Africa: The worst-hit country by unemployment
- According to the World Bank, South Africa is expected to have the highest unemployment rate in the world in 2023, at 34.7%. This is more than double its pre-pandemic level of 16.4% in 2019.
- South Africa’s economy was already struggling before the pandemic, due to structural problems such as low growth, high inequality, corruption, power shortages, and policy uncertainty. The pandemic exacerbated these issues and caused a sharp contraction of 7% in GDP in 2020.
- The lockdown measures imposed to contain the virus resulted in massive job losses, especially in sectors such as tourism, hospitality, manufacturing, mining, and construction. The informal sector, which accounts for about a third of employment, was also severely affected.
- Despite some government interventions such as wage subsidies, tax relief, social grants, and loan guarantees, many workers and businesses did not receive adequate support or access to finance. The fiscal space for further stimulus was limited by high public debt and low tax revenues.
- The recovery prospects for South Africa are uncertain and depend on the progress of vaccination, the management of new variants, and the implementation of structural reforms to boost growth potential and create jobs. The World Bank projects a modest GDP growth of 3.5% in 2021 and 2.1% in 2022.
Kosovo: A young country with a high youth unemployment
Kosovo is projected to have the second-highest unemployment rate in the world in 2023, at 26.2%. This is slightly lower than itspre-pandemic level of 27.5% in 2019.
- Kosovo is one of the youngest countries in Europe, having declared its independence from Serbia in 2008. It faces many challenges such as political instability, weak institutions, low productivity, limited market access, and environmental degradation.
- Kosovo’s economy was hit hard by the pandemic, which caused a GDP decline of 6.5% in 2020. The lockdown measures affected sectors such as trade, transport, tourism, education, and entertainment. The remittances from abroad, which account for about 15% of GDP, also declined.
- The government provided some relief measures such as cash transfers, wage subsidies, tax deferrals, and credit guarantees, but they were insufficient to prevent the rise of poverty and inequality. The fiscal deficit widened to 7.7% of GDP in 2020, while the public debt increased to 22.5% of GDP.
- The recovery outlook for Kosovo is
positive, with a projected GDP growth of 4.5% in 2021 and 5% in 2022. However,
the main challenge for Kosovo is to reduce its high youth unemployment, which
was 49.4% in requires improving the quality and
relevance of education and training, enhancing the labor market institutions
and policies, and promoting entrepreneurship and innovation.
Djibouti: A small country with a large informal sector
- Djibouti is expected to have the third-highest unemployment rate in the world in 2023, at 26.1%. This is slightly higher than its pre-pandemic level of 25.8% in 2019.
- Djibouti is a small country in the
Horn of Africa, with a population of about one million and a strategic location
near the Red Sea and the Gulf of Aden. It has a diversified economy based on
services, trade, logistics, and transport.
- Djibouti’s economy was resilient to the pandemic, with a GDP growth of 1% in 2020. This was mainly due to the strong performance of the port sector, which benefited from the increased demand for humanitarian and medical supplies in the region. The government also implemented some fiscal and monetary measures to support households and businesses.
- However, the pandemic had a negative impact on other sectors such as tourism, hospitality, construction, and manufacturing. The informal sector, which employs about 75% of the labor force, was particularly vulnerable to the loss of income and livelihoods. The poverty rate increased from 21% in 2017 to 23% in 2020.
Which Countries Have the Lowest Unemployment Rates?
| Country | Unemployment Rate in 2023 | Rank |
|---|---|---|
| Thailand | 1% | 1 |
| Qatar | 1.1% | 2 |
| Japan | 2.5% | 3 |
| Cambodia | 2.6% | 4 |
| Belarus | 2.7% | 5 |
| Vietnam | 2.8% | 6 |
| Niger | 2.9% | 7 |
| Rwanda | 3% | 8 |
| Singapore | 3.1% | 9 |
| Myanmar | 3.2% | 10 |
Source: World Bank
Thailand: A tourism-dependent country
with a resilient labor market
- According to the World Bank, Thailand is expected to have the lowest unemployment rate in the world in 2023, at 1%. This is slightly higher than its pre-pandemic level of 0.8% in 2019.
- Thailand is a middle-income country in Southeast Asia, with a population of about 70 million and a diversified economy based on manufacturing, agriculture, services, and tourism.
- Thailand’s economy was severely affected by the pandemic, which caused a GDP contraction of 6.1% in 2020. The tourism sector, which accounts for about 20% of GDP and employment, was virtually shut down due to travel restrictions and border closures. Other sectors such as trade, transport, hospitality, and entertainment also suffered from the lockdown measures and weak domestic demand.
- The government responded with a comprehensive stimulus package worth about 15% of GDP, which included cash transfers, tax relief, wage subsidies, health spending, infrastructure investment, and credit support. The fiscal deficit widened to 7.6% of GDP in 2020, while the public debt increased to 57.6% of GDP.
- The recovery outlook for Thailand is moderate, with a projected GDP growth of 3.4% in 2021 and 4.7% in 2022. However, the main challenge for Thailand is to revive its tourism sector, which depends on the progress of vaccination both domestically and internationally. The government has announced plans to reopen some tourist destinations by July 2021 and fully reopen by January 2022.
Qatar: A rich country with a large
migrant workforce
- Qatar is projected to have the second-lowest unemployment rate in the world in 2023, at 1.1%. This is slightly lower than its pre-pandemic level of 1.2% in 2019
- Qatar is projected to have the second-lowest unemployment rate in the world in 2023, at 1.1%. This is slightly lower than its pre-pandemic level of 1.2% in 2019.
- Qatar is a rich country in the Middle East, with a population of about 2.8 million and a GDP per capita of over $60,000. It has a large oil and gas sector, which accounts for about 50% of GDP and 85% of exports.
- Qatar’s economy was resilient to the pandemic, with a GDP growth of 1.5% in 2020. The government implemented effective public health measures to contain the virus and protect the population. It also provided fiscal and monetary support to households and businesses, amounting to about 10% of GDP.
- However, the pandemic had some negative impacts on sectors such as tourism, aviation, construction, and retail. The labor market also faced some challenges, especially for the migrant workers, who make up about 90% of the workforce. Some of them lost their jobs or faced wage cuts, while others faced difficulties in returning to their home countries due to travel restrictions.
- The recovery prospects for Qatar are optimistic, with a projected GDP growth of 3.4% in 2021 and 4.1% in 2022. The main drivers of growth are the expansion of the liquefied natural gas (LNG) production capacity, the hosting of the FIFA World Cup in 2022, and the diversification of the economy into sectors such as finance, education, health, and technology.
Cambodia: A developing country with a dynamic labor market
- Cambodia is expected to have the third-lowest unemployment rate in the world in 2023, at 1.3%. This is slightly higher than its pre-pandemic level of 1.1% in 2019.
- Cambodia is a developing country in Southeast Asia, with a population of about 17 million and a GDP per capita of about $1,600. It has a young and growing labor force, with about 70% of the population under the age of 35.
- Cambodia’s economy was severely affected by the pandemic, which caused a GDP contraction of 3.1% in 2020. The main sectors that suffered were garments, tourism, construction, and agriculture. The poverty rate increased from 13% in 2019 to 17.6% in 2020.
- The government responded with a stimulus package worth about 4.5% of GDP, which included cash transfers, tax exemptions, wage subsidies, health spending, and social protection. The fiscal deficit widened to 6.5% of GDP in 2020, while the public debt increased to 35.8% of GDP.
- The recovery outlook for Cambodia is
positive, with a projected GDP growth of 4% in 2021 and 5.5% in 2022. However,
the main challenge for Cambodia is to create more
decent and productive jobs, especially for women and youth. This requires
improving the skills and education of the workforce, enhancing the
competitiveness and diversification of the economy, and strengthening the labor
rights and social dialogue.
Conclusion
The
factors that influence the unemployment performance of each country include the
severity and duration of the pandemic outbreak, the effectiveness and adequacy
of the public health measures and economic policies taken, and the structure
and resilience of the labor market.
The
challenges and opportunities for each country in the post-pandemic recovery
depend on their progress of vaccination, their potential for growth and job
creation, their fiscal and monetary space for further stimulus or
consolidation, and their need for structural reforms to address long-term
issues such as inequality, productivity, sustainability, and social inclusion.
The
global community has a shared responsibility to support each other in
overcoming the pandemic crisis and building back better for a more prosperous
and equitable future.
FAQs
Q: What is the global unemployment rate in 2023?
A:
According to the ILO’s World Employment and Social Outlook report, the global
unemployment rate is projected to be 5.7% in 2023, down from 6.5% in 2020 but
still higher than 5.4% in 2019.
Q: Which
region has the highest unemployment rate in 2023?
A: According
to the World Bank’s Global Economic Prospects report, the region with the
highest unemployment rate in 2023 is Sub-Saharan Africa, with 9.5%. This is
followed by Latin America and the Caribbean, with 8.9%, and the Middle East and
North Africa, with 8.8%.
Q: Which
region has the lowest unemployment rate in 2023?
A:
According to the World Bank’s Global Economic Prospects report, the region with
the lowest unemployment rate in 2023 is East Asia and Pacific, with 3.4%. This
is followed by South Asia, with 4.5%, and Europe and Central Asia, with 5.6%.
Q: How
does unemployment affect mental health?
A:
Unemployment can have negative effects on mental health, such as increased
stress, anxiety, depression, low self-esteem, and suicidal thoughts. According
to a study by the Lancet, the risk of suicide increased by 20% among people who
lost their jobs during the pandemic.
Q: How
can unemployment be reduced?
A: Unemployment can be reduced by implementing policies and programs that support the demand and supply of labor, such as fiscal and monetary stimulus, infrastructure investment, social protection, active labor market policies, skills development, entrepreneurship promotion, and labor market reforms.
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